Please Answer the following questions:

Dr. Johnson plans to open a new eye surgery center as the sole owner. By all indications, the center will be hugely successful from the start. There is substantial risk in this type of business. Dr. Johnson is already very wealthy and does not want any more income on his personal return. However, he would like to sell the business in six years. Based on this information, what form of business entity would you recommend? O C corporation Os corporation O sole proprietorship O Limited liability partnership Which of the following is generally a nontaxable event to the shareholder? A proportionate stock dividend of common stock on a shareholder's common stock. A stock dividend of common stock on a shareholder's common stock where there is option to receive cash. A stock dividend of nonconvertible preferred stock on a shareholder's preferred stock. A stock dividend of common stock on a shareholder's preferred stock. Which of the following is true with regard to the accumulated earnings tax? There is no penalty tax if the net earnings are fully distributed. The additional tax is self-assessed by the corporation when it files its tax return. The corporation may be subject to both the accumulated earnings tax and the personal holding company tax. The reasonable-needs credit cannot be used in the corporation's first year of existence