Sarah plans to invest $1 million in a business venture that will last ve veers. She is debating whether to operate the business as a C corporation or a sole proprietorsllip. [f a C co tion, she 1will liquidate the corporation at the end of the fiveyear period. She ex the business to generate taxable income as follows: Year Taxable Income T $ 40,000 2 'I' 3 sums 4 lSD 5 350,}[} [f incurred in corporate form, these taxable income amounts 1will be subject to the corporate tax rate schedule. If in Proprietorship form, the}r will be subject to Sarah's 39.5% marginal tax rate because she has income from other sources that puts her in the top individual tax bracket. An? capital gain upon corporate liquidation will be taxed at 23.8% [the 20% maximum capital gain rate plus the 3.3% rate on net investment income). Assume that Sec. 12ll2 does not apply