Bob Jones has a small repair shop that he has run for several years as a sole proprietor-ship. The proprietorship uses the cash method of accounting and the calendar year as itstax year. Bob needs additional capital for expansion and knows two people who might beinterested in investing in the business. One would like to work for the business. The otherwould only invest.Bob wants to know the tax consequences of incorporating the business. His businessassets include a building, equipment, accounts receivable, and cash. Liabilities include amortgage on the building and a few accounts payable, which are deductible when paid. Assume that Bob