Question 2 Discuss three ways in which a shareholder can withdraw funds from his/her corporation and the associated tax consequences for both the shareholder and the corporation of each. Question 3 Dylan operates a sole proprietorship with the following business assets: Tax Amount Fair Market Value Cash Accounts receivable Inventories Equipment Goodwill $ 10,000 $ 18,000 $ 35,000 $ 22,000 Nil $ 10,000 16,000 40,000 36,000 180,000 The capital cost of the equipment is $50,000. Dylan would like to incorporate his business. He will be the only shareholder of the newly formed company and will only receive share considerations on the transfer. Required a. Compute the impact on taxable income to Dylan's personal tax return if all the above assets are transferred to the new company, without making any elections under the ITA. b. Compute the impact on taxable income to Dylan's personal tax retuin all the above assets are transferred to the new company, making any elections under the ITA in order to minimize taxable income. c. Explain three advantages of operating a business as a sole proprietorship rather than a corporation