11-23 Net Income from Operations. A and B are MDs in the AB partnership. Because of limited liability considerations, their attorney has advised them to incorporate. A typical year for the MDs (who are equal partners) is as follows: Revenues $400,000 Operating expenses 190,000 Charitable contributions. 10,000 Owner compensation 200,000 net income if it is taxed as (1) a a. Calculate AB's ordinary S corporation b. Calculate the effect on A's ordinary income if AB is taxed as () a partnership (2) and S corporation; or (3) a C corporation c. Ignoring limited liability considerations, should the partners incorporate? If so should they elect S status? d. If A and B desire partnership tax treatment, is there any business entity that would meet their needs? partnership or (2) an 11-23 Net Income from Operations. A and B are MDs in the AB partnership. Because of limited liability considerations, their attorney has advised them to incorporate. A typical year for the MDs (who are equal partners) is as follows: Revenues $400,000 Operating expenses 190,000 Charitable contributions. 10,000 Owner compensation 200,000 net income if it is taxed as (1) a a. Calculate AB's ordinary S corporation b. Calculate the effect on A's ordinary income if AB is taxed as () a partnership (2) and S corporation; or (3) a C corporation c. Ignoring limited liability considerations, should the partners incorporate? If so should they elect S status? d. If A and B desire partnership tax treatment, is there any business entity that would meet their needs? partnership or (2) an