The corporation's accumulated earnings and profits at the beginning of the year was $600,000. In the current year the corporation had a $200,000 net loss from operations, which did not include the following transaction. At the end of the year the corporation sold real estate to the corporation's major shareholder. The price charged was $300,000, the corporation's basis in the property, but the fair market value of the property was $450,000.
a. What are the effects on the corporation's taxable income?
b. What are the effects on the shareholder's taxable income?
c. What are the effects on the corporation's earnings and profits?