Lexi operates a booming business which sells fruits and vegetables delivered door to door to residential customers each morning. Her business invests its excess working capital whenever it is convenient. The business makes regular contributions to local charities to maintain a good business reputation Lexi started the business and operated as a sole proprietorship during the last 7 months of 2016. When she met with an attorney in December of 2016, the attorney advised Lexi to set up a Limited Liability Company (LLC) to conduct all business activities beginning January 1, 2017. During 2017 her business had the following items of income and expense Gross sales of fruits and vegetables Interest income Dividend income Short term capital gain $280,000 2,000 1,200 4.100 $287,300 Total receipts Wages to employees (she did not pay a wage to herself) Rent & utilities Charitable contributions $ 86,000 61,000 12,000 $159,000 Total expenditures Lexi prefers to own 100% of the LLC membership interests, but is willing to allow her significant other to own as much as 2% of the LLC membership interests if you advise her to do so (12 Points). Ignoring any elections the LLC may have previously made, list all options available to the LLC for the type(s) of income tax returns it could file for 2017? (a) (b) (24 Points). Compute the operating income and describe the tax treatment of the operating income and any items which are not included in operating income for each alternative type of tax return you describe in part (a)