Ellie and Linda are equal owners in Otter Enterprises, a calendar year business. During the year, Otter Enterprises has $500,000 of gross income and $300,000 of operating expenses. In addition, Otter sells assets that had been held as an investment for a long term capital gain of $60,000 and makes distributions to Ellie and Linda of $40,000 each. Discuss the impact of this information on the taxable income of Otter, Ellie, and Linda if Otter is:
a. a partnership
b. an S Corporation
c. a C Corporation