Question 1: (10 marks) Scenario: Lenny Robb and Johnny D'Gold, his brother-in-law started a farming business in 2005 raising sheep on the Western Plains of New South Wales. This business has done well and they are now earning $500,000 in profits and sharing them equally under their partnership agreement. However, they are now both married with 2 children each and they feel it might be better to consolidate the business and to use a Company instead of the partnership structure. You have graduated and are now working for an accounting firm