Amber holds a 20% interest in a business to which she contributed $100,000 as part of the initial ownership group. During the life of the business, the following have occurred.
$200,000 cumulative losses, first three tax years.
$150,000 operating profit in the fourth tax year.
$75,000 distribution to owners at the end of the third tax year.
$60,000 payment to redeem 25% of Amber's ownership interest at the end of the fourth year. No other ownership redemptions have occurred.
Determine the tax consequences to Amber if the entity is organized as:
a. A partnership
b. An s corporation
c. a C corporation