Labrador Corporation has total capital gains of $18,000 and total capital losses of $35,000 in 2021. Randy owns 25% of Labrador's outstanding stock. What is the effect on Labrador's and Randy's 2021 taxable incomes if
a. Labrador is a corporation? Explain how Labrador and Randy would treat the capital gains and losses.

b. Labrador is an S corporation? Explain how Labrador and Randy would treat the capital gains and losses.