Brenda and Sally are interested in organizing a new interior decorating business as 80-20 owners. Brenda will contribute $80,000 in exchange for an 80% ownership interest and Sally will contribute $20,000 for a 20% ownership interest. The business will borrow $40,000 as a working capital loan. Brenda and Sally will both actively manage the interior decorating business, but they will not draw a salary or take distributions during the first two years of operations. The two-year business plan projects a first year loss of $120,000 and a second year profit of $60,000. In light of the first year projected loss, Brenda and Sally are considering organizing as either a general partnership or an S corporation. Brenda is in the 35% marginal bracket and Sally is in the 25% marginal bracket in the first and second years of operations. A. Assuming the business plan projections are accurate in the first year, calculate the first year tax savings to Brenda and Sally arising from the interior decorating business if the business is organized as a general partnership. Please show your work and explain your calculations. (2 points) B. Assuming the business plan projections are accurate in the first year, calculate the first year tax savings to Brenda and Sally arising from the interior decorating business if the business is organized as an S corporation. Please show your work and explain your calculations. (2 points) C. Assuming the business plan projections are accurate in the second year, calculate the second year tax liability to Brenda and Sally arising from the interior decorating business if the business is organized as a general partnership. Please show your work and explain your calculations. You may ignore payroll taxes for this calculation. (2 points) D. Assuming the business plan projections are accurate in the second year, calculate the second year tax liability to Brenda and Sally arising from the interior decorating business if the business is organized as an S corporation. Please show your work and explain your calculations. You may ignore payroll taxes for this calculation. (2 points) E. Assuming the business plan projections are accurate in the first and second year, what would Brendas and Sallys bases be in their ownership interest at the end of the second year if the interior decorating business was organized as a general partnership? As an S corporation? Please show your work and explain your calculations. (2 points)