In January 2022, Peter and Andrew plan to open an automobile dealership in Davie, Florida. Peter will contribute $500,000 cash and real property with a fair market value $300,000 for an 80% ownership interest in the business. The real property has an adjusted basis of $200,000 and is subject to a $100,000 mortgage that the new business will assume. Andrew, will be a 20% minority owner and manager of the business but will not contribute any property. Peter and Andrew estimate the automobile dealership will have taxable income of approximately $500,000 in 2022, net of all deductions including a reasonable salary for each of them. Their plans are to grow the business over the next several years. Both Peter and Andrew are Florida residents, single taxpayers, and in the top marginal federal income tax bracket. Recommend a business organization that Peter and Andrew should establish to operate their automobile business. Consider both state law and federal income tax characteristics. Explain and support your recommendation. Given the business organization that you recommend in question one, discuss the income tax consequences to the owners Peter and Andrew, and to the business organization, of forming the new business (realized and recognized gain or loss, if any, basis to owners and business organization). Support your analysis with authority from the tax code or other tax law.