In 2020 Gus owns 85% of Sweet & Associates. Sweet & Associates is a law firm and distributes to Gus $300,000. The firm has sales income of 4,200,000 and operating expenses of $1,400,000. The firm has property with an unadjusted basis of $500,000 and paid W2 wages for the year of $300,000. Gus is married and his taxable income (excluding any income from Sweet & Associates) is $550,000. For each independent scenario below how the entity will be taxed and how Gus return will be affected by the income from Sweet & Associates. (8 points)

a) Sweet & Associates is a C-Corporation

b) Sweet & Associates is an S- Corp

c) Sweet & Associates is a Sole Proprietorship and Gus owns 100%

d) How would your answer change (or not) in part b if they were a manufacturing company instead of a law firm?