Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $17 par value, 11,800 shares authorized. During the year, the following selected transactions were completed: a. Sold 6,600 shares of common stock for cash at $34 per share. b. Sold 2,300 shares of common stock for cash at $39 per share. c. At year-end, the accounts reflected income of $7,100. No dividends were declared.

David paid $975,000 for two beachfront lots in coastal south carolina, with the intention of building residential homes on each. two years later, the south carolina legislature passed the beachfront management act, barring any further development of the coast, including david's lots. when david files a complaint to seek compensation for his property, south carolina refuses, pointing to a passage in david's own complaint that states "the beachfront management act [was] properly and validly designed to south carolina's " is south carolina required to compensate david under the takings clause?