Megan owns 55% and Vern owns 45% of a business entity. The owners would like to use the entity to share profits (55% for Megan and 45% for Vern) and to share losses (80% for Vern and 20% for Megan). Determine the tax consequences for 2014 if the entity has a tax loss of $160,000 and is organized as:
a. A partnership.
b. A C corporation.
c. An S corporation.