What is an S corporation, and what are the advantages of forming one? Why would you form an S corporation rather than a partnership or sole proprietorship? 2. How does a corporation qualify as an S corporation? 3. How is income treated for the shareholders of an S corporation? 4. What is the function of the S corporation’s accumulated adjustment account? 5. How do you determine a shareholder’s basis in an S corporation? What if he or she contributed the property subject to liability? 6. What is a sole proprietorship, and what are the advantages of forming one? Why would you form a sole proprietorship rather than a partnership or an S corporation? Are there disadvantages and if so, what are they? 7. What is a partnership, and what are the advantages of forming one? Why would you form a partnership rather than a sole proprietorship or S corporation? 8. What are the rules of contributions into a partnership? Please cover this from the partner side and the partnership side. 9. When does a partner recognize the taxable gain in connection with a distribution? 10. Is the sale of a partner’s interest in a partnership to an outside party taxable? How is the selling price determined, and how are gain and loss measured? 11. When can a loss be recognized for tax purposes in a partnership liquidating distribution? How is the loss calculated? 12. What advantages are there of being a C corporation rather than an S corporation? If you had a $10 million business, which form would you choose and why? 13. Once you choose a business entity, is it easy to switch back to your prior form if you wanted to? What steps are involved? 14. Please give 2 examples of a real-world company for of the following (total 12): Corporation, S-Corporation, Partnership and Sole Proprietorship. What is their primary business and how is each company doing financially. Do you feel their current choice of business entity is the best choice for them? If not, what would you choose and why?