Please treat the following cases as your California clients seeking your sage tax advice. Your answers and opinions will affect how they proceed with each of their proposed transactions. Use a new page for each case and mark clearly the case number and subpart you are answering. Case #1 (10 points) Your old friend Bill from high school is trying to organize an S Corporation and approached you with these questions. He already has 99 unrelated investors/shareholders (including himself) lined up to form this new S Corporation. He could use a bit more capital and is considering the following options. Please treat each circumstance below on its own merit and whether each is advisable towards successfully forming Bill's S Corporation by staying within the maximum allowable number of shareholders and rules. Please answer yes or no to each question, then quote complete IRC Section (down to sub clause if present) to support each of your answers. a) Bill would like to raise more capital by issuing a second class of stock. b) Bill found these two brothers interested in investing to become the 100th and 101* shareholders. c) Bill is considering Warren Buffet as the 100th investor/shareholder. Warren is not in his best health and had told Bill in the event that he dies, he intends for Warren's estate to continue as a shareholder d) Bill is considering a British investor, who is not a U.S. resident as the 100th investor/shareholder. e) ABC Corporation caught wind of Bill's business plan and is interested in becoming the 100th investor/shareholder. f) Bill is approached by Steve and Melissa (father and adopted daughter) who are interested in becoming the 100th and 101t investor/shareholder.