Fact Pattern: Bryce Harper and Taylor Swift have decided to form a business to sell flipflops. They are undecided on what type of entity they should form in order to best fit their venture. Here are some facts to consider: - Bryce will be contributing equipment worth $1,000,000 with a basis of $250,000 - Taylor will be contributing cash of $1,000,000 - They will own the enterprise 50% each - Bryce will be active in the business and will need to be compensated for his work - Taylor will not be active in the business - Taylor expects to receive distributions at some point to receive a return on her investment - Short-term the enterprise is expected to lose money and distributions are unlikely - The enterprise could need additional capital that will need to be provided by outside sources either by loans or ownership equity - Both Bryce and Taylor expect to sell the enterprise in 6 to 8 years Tasks: Please prepare a memo that discusses what entity type that Bryce and Taylor should form for their flip flop enterprise. Discuss the tax and business advantages of the entities. Be sure to support your decision based on the above facts