(1) An S corporation shareholder's income is that income included in federal adjusted gross income plus:

(a) an amount equal to the federal tax on capital gains and the minimum tax paid by the corporation times the shareholder's percentage of ownership;

(b) an amount equal to the excess net passive federal income tax paid by the corporation times the shareholder's percentage of ownership; and

(c) all other amounts equal to federal taxes paid by the corporation that reduce the shareholder's distribution of the net S corporation income.