1)Boo Zoo comes to you with the following facts and wants to know what its line 28 taxable income is for 2019. In 2019 Boo Zoo had the following activity:

• Ticket sales $100
• Food sales $100
• Merchandise sales $300
• Officers compensation $50
• Employee salaries $50
• Meals for the employees $10
• Entertainment expenses of $10
• Advertising costs of $10
• State taxes paid of $100
• Inventory purchases of $100

2)Bulldogs Inc. does business in NY and NJ and it is headquartered in CT. Bulldogs Inc. has $100,000 of sales in NY and $200,000 in NJ. Bulldogs Inc. has $100,000 of payroll and $100,000 of property only in CT. NY applies single sales factor apportionment formula. What is Bulldogs Inc. apportionment in NY?

3)Barbara and Sue want to set up a Partnership. Barbara will be contributing $50,000 and $50,000 in services in exchange for 50% of the partnership interest. Sue will be contributing $100,000 in exchange for 50% of the interest in the partnership. Discuss the tax impact of setting up the partnership to Sue and Barbara.

4)Alan and Zach want to set up a Corporation. Alan will be contributing a house worth $250,000 which he originally purchased for $50,000 in exchange for 50% of the stock of the company. Zach will be contributing $100,000 of construction supplies and $25,000 of cash for 50% of the stock of the company. Discuss the tax impact of setting up the Corporation for Alan and Zach.