Shas been operating his business as a Sole Proprietorship, but has grown a lot over the last couple of years. He would like to incorporate and bring in two shareholders at formation. Joe is unsure of the tax differences between a sole proprietorship and a corporation. To illustrate to Joe the tax implications of these entity choices, assume the business had $100,000 in business income. Additionally, Joe withdrew $20,000 from the business (determine whether it is a dividend or withdraw based on the type of entity). For each of the # provided below (1-12) indicate whether the $100,000 income is taxable to Joe or the entity based on the type of entity and whether the $20,000 was a withdraw or dividend for Joe and the business. Identify if the entity is taxed or not and based on what amount (income, dividends, etc.). Answers for 1-12(enter only the letter a-f in the blank): a. Dividend b. Withdraw c. Business Income d. Not included on return (or no return) e. Taxed f. Not Taxed Joe (personal) The Business Sole Proprietorship 1. What is the distribution to Joe? What is the impact of the business income to the Business entity 5. Type of income (a-d)? 2. t the distribution taxable to Joe when he receives it? What will Joe record on his personal tax return for the income of the business 3. Type of Income (a-d)? 6. Is the business taxed on income (e or f)? 4. Is it taxed (e or f)? C-Corporation 7. What is the distribution to Joe What is the impact of the business income to the Business entity: 11. Type of Income (a-d)? 8. Is the distribution taxable to Joe when he receives it? What will Joe record on his personal tax return for the income of the business: 12. Is the business taxed on income (e or f)? 9. Type of Income (a-d)? 10. Is it taxed (e or f)