please answer 1 and 2

Jack Johnson and wite dill Johnson, Texas residents, retained the law firm of Dewey, Cheatham \& Howe, LLP to form a corporation for them to operate their water. well business. After receiving their corporate charter for Buckets \& Pails, Inc. from the Texas Secretary of State on October 1, 2022, Jack and Jill had the corporation issue 500 shares of its common stock to each of them. They then consulted the accounting firm of Malprack, Tiss \& More, CPAs to advise them with regard to the tax consequences of their new business. Upon learning that Jack and Jill expect to incur a loss in 2022 and potentially again in 2023, combined with concern over possible tax law changes pertaining to corporate tax rates when the current law expires after 2025, the CPAs recommend Jack and Jill qualify Buckets \& Pails, Inc, as an "S Corporation." The file was turned over to staff accountant Ima Newman who cheerfully reported to Jack and Jill, "Ill take care of you!" Buckets \& Pails, Inc. did indeed suffer a loss in 2022 amounting to $150,000, and Jack and Jill are eager to apply that loss against the short-term gains they made in their investments in 2022. Furthermore, it appears that the corporation may very well incur another loss in its first full year of operations in 2023 . On March 1, 2023, Jack and Jill return to Malprack, Tiss \& More, CPAs for the preparation of the 2022 Form 1120S for Buckets \& Pails, Inc. and their joint 2022 Form 1040. It is only then that they learn Ima Newman did not take such good care of them, in that he never filed the required IRS Form 2553 electing "S Corporation" status for Buckets \& Pails, Inc. Jack and Jill have now discharged that accounting firm and come to you seeking guidance--as well as tax return preparation services for their corporation and for themselves for 2022,2023 and possibly future years. Based upon the results of your tax research: 1. Prepare a written memorandum for your file with citations that document your findings and the recommendations you will make. 2. Write a letter to your clients reporting your recommendations and the reasons supporting them