Richie and Roger decide not to organize or incorporate a separate entity to operate their empanada truck.

Their first year in operation, Richie and Roger make a profit of $40,000. How will that profit be treated for income tax purposes? Explain your answer. (5 points)

Shortly after beginning their food truck operation, Richie and Roger sold a bad batch of empanadas to a customer, Sarah, who gets sick and has to spend a few days in the hospital with food poisoning. Sarah sues the food truck to recuperate her medical expenses. If the food truck is found to be liable for Sarahs damages, who will have to pay for her medical expenses? (5 points)

ANSWER AND GET A THUMBS UP!!!!!!!!!!!!!!!!!!!!!