Exercise 18-24 (Algorithmic) (LO. 5) On January 2, Chaz transfers cash of $182,600 to a newly formed corporation for 100% of the stock. In its initial year, the corporation has net income of $45,650. The income is credited to its earnings and profits account. The corporation distributes $13,695 to Chaz. If an amount is zero, enter "0". a. How do Chaz and the corporation treat the $13,695 distribution? Chaz has a taxable dividend of $ 10,956 X and the corporation has a deduction of $ 0 b. Assume instead that Chaz transfers to the corporation cash of $91,300 for stock and cash of $91,300 for a note of the same amount. The note is payable in equal annual installments of $9,130 and bears interest at the rate of 6%. No distributions are made during the year to Chaz. However, at the end of the year, the corporation pays an amount to meet the loan obligation(i.e., the annual $9,130 principal payment plus the interest due). Determine the total amount of the payment and its tax treatment to Chaz and the corporation. The corporate payment to Chaz totals $ $ 0 X of which $ 0 0 X. Chaz has interest of $ X and a note repayment of 0X. X is taxable to Chaz. The corporation has a deduction of $