Project 1. You have three clients; Tom, Bill, and Joe. They want to start a brand new golf course. They need to determine what type of business entity to use or form. They are considering either a corporation or a partnership. You are a small business consultant. Please prepare a memo outlining the advantages and disadvantages of each form of organization. Advise them which form or organization would better serve their purposes. Make sure to include reasons supporting your choice. 2. Tom, Bill, and Joe decide to incorporate. The three investors transfer a building on 100 acres of land that they co-own. The fair market value of the building and land is $3,000,000. The building is worth $1,000,000, while the land is worth $2,000,000. The original purchase price 5 years ago was $1,750,000, with the building being worth $500,000 and the Land $1,250,000. They each receive 10,000 shares of $20 par common stock in return for the co-owned building. They need to raise an additional $1,000,000 in working capital. They are considering selling an additional 10,000 shares of $20 par value common stock or taking out a bank loan for $1,000,000 at a 5% rate of interest. The FMV of the common stock is presently at $100 per share. They will be paying corporate taxes at the rate of 21%. We anticipate having net income of $500,000 before interest and taxes. Prepare a spreadsheet analyzing the two methods and tell me which method that you prefer and why. In addition, record the journal entries required for the contribution of the building and land and the issuance of the stock to the three owners. 3. What method of accounting would you recommend for the entity and why? 4. The business entity was started on January 1, 2019. Our year-end was December 31, 2019. During that time, we had $1,000,000 in revenue. $200,000 in land improvements. $150,000 in salaries and wages, $50,000 in utilities, $60,000 in normal repair and maintenance expense. We had $25,000 in advertising. $15,000 in office supplies were used, and we purchased $80,000 worth of golf carts. All of the revenue was received in cash and all of the expenditures were paid out in cash. Please make a journal entry or entries to record the activity during the year. Do not forget to make a year-end adjusting entry to record depreciation expense, using the straight-line method. Assume the building has a 20-year useful life and no salvage value, the land improvements have a useful life of 7 years and a $20,000 salvage value, and the golf carts have a 5-year useful life and a salvage value of $5,000. The land improvements were made on January 1, 2019 and the Golf Carts were purchased on June 30, 2019. 5. Record the transaction assuming that the debt option was selected on June 30, 2019 and the funds were wired into our checking account on that date. Assume that interest only was paid on December 31, 2020 for the debt option. 6. At the end of the year, the owners decide to pay themselves each a 5% stock dividend. The stock had FMV of $110 per share on that date and a $20 par value. The stock dividend was declared on December 31, 2019. The date of record was January 15, 2020. The date of payment is February 1, 2020. 7. Prepare an Income Statement, Balance Sheet, and a statement of shareholders equity as of December 31, 2019