While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat $($GTE$),$ specializes in custom$-$sculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of $2023,$ and each contributed $$190,000$ in exchange for a $50$ percent ownership interest. GTE also borrowed $$760,000$ from a local bank. Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTE's $2023$ activities:GTE uses the cash method of accounting $($for both book and tax purposes$)$ and reports income on a calendar$-$year basis.GTE received $$1,150,000$ of sales revenue and reported $$540,000$ of cost of goods sold $($it did not have any ending inventory$).$GTE paid $$100,000$ compensation to James, $$100,000$ compensation to Paul, and $$110,000$ of compensation to other employees $($assume these amounts include applicable payroll taxes, if any$).$GTE paid $$29,000$ of rent for a building and equipment, $$34,000$ for advertising, $$53,200$ in interest expense, $$5,400$ for utilities, and $$3,400$ for supplies.GTE contributed $$12,000$ to charity.GTE received a $$3,800$ qualified dividend from a great stock investment $($it owned $2$ percent of the corporation distributing the dividend$),$ and it recognized $$2,900$ in short$-$term capital gain when it sold some of the stock.On December $1,2023,$ GTE distributed $$34,000$ to James and $$34,000$ to Paul.GTE has qualified property of $$314,000($unadjusted basis$).$Note: Leave no answers blank. Enter zero if applicable. Enter N$/$A if not applicable.

a$-1.$ Assume James and Paul formed GTE as an S corporation.Complete GTE's Form $1120-$S$,$ page $1$; Form $1120-$S$,$ Schedule K$.$Note: Visit the IRS website and download Form $1120-$S$,$ Schedule K$.$ Enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save."

a$-2.$ Assume James and Paul formed GTE as an S corporation.Complete Paul's Form $1120-$S$,$ Schedule K$-1.$Note: Visit the IRS website and download Form $1120-$S$,$ Schedule K$-1.$ Enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save."

a$-3.$ Assume James and Paul formed GTE as an S corporation.

$1.$Compute the tax basis of Paul's stock in GTE at the end of $2023.$

$2.$What amount of Paul's income from GTE is subject to FICA or self$-$employment taxes?

$3.$What amount of income, including its character, will Paul recognize on the $$34,000$ distribution he receives on December $1?$

$4.$What amount of tax does GTE pay on the $$3,800$ qualified dividend it received?

b$-1.$ Assume James and Paul formed GTE as an LLC$.$Complete GTE's Form $1065,$ page $1$; Form $1065,$ Schedule K$.$Note: Visit the IRS website and download Form $1065,$ Schedule K$.$ Enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save."

b$-2.$ Assume James and Paul formed GTE as an LLC$.$Complete Paul's Form $1065,$ Schedule K$-1.$Note: Visit the IRS website and download Form $1065,$ Schedule K$-1.$ Enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save."

b$-3.$ Assume James and Paul formed GTE as an LLC$.$

$1.$Compute the tax basis of Paul's ownership interest in GTE at the end of $2023.$

$2.$What amount of Paul's income from GTE is subject to FICA or self$-$employment taxes?

$3.$What amount of income, including its character, will Paul recognize on the $$34,000$ distribution he receives on December $1?$

$4.$What amount of tax does GTE pay on the $$3,800$ qualified dividend it received?

c$-1.$ Assume James and Paul formed GTE as a C corporation.Complete GTE's Form $1120,$ page $1.$Note: Visit the IRS website and download Form $1120.$ Enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save."

c$-2.$ Assume James and Paul formed GTE as a C corporation.

$1.$Compute the tax basis of Paul's stock in GTE at the end of $2023.$

$2.$What amount of Paul's income from GTE is subject to FICA or self$-$employment taxes?

$3.$What amount of income, including its character, will Paul recognize on the $$34,000$ distribution he receives on December $1?$

$4.$ What amount of tax does GTE pay on the $$3,800$ qualified dividend it received?Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.