The case is about S and C corporations. Finish the case.

ACC 585 - Turn-it-in Assignment No. 4 Mark and Jennifer are organizing a business in which each will be a 50% owner. They expect to be paid a reasonable salary of $125,000. The company will purchase a $2 million shopping mall ($1.5 million for building and $.5 million for land) on January 1, 2016the starting date of the business. The mall will be rented out at a net annual income of $500,000. Each owner will contribute 1 million to provide the company with cash to make the purchase. Assume that annual depreciation on the shopping mall is $37,000. Taxable income from other sources is expected to be around $600,000before deducting the salaries. Mark and Jennifer are both in the 35% tax bracket. Consider the three alternatives below and make a recommendation assuming that Mark and Jennifer wish to minimize the impact of taxes. Give quantitative support for your choice of one of the alternatives. (Ignore payroll taxes in your analysis.) (a) Organize the company as a C corporation (b) Organize the company as an S Corporation (c) Organize the company as a C Corporation, but have the owners buy the property and lease it to the corporation for its fair rental value of 300,000. Note: The 37,000 depreciation is the amount that will be claimed by the shareholders if they lease the property to the corporation. When calculating that alternative, you may assume that the corporation will still have a net 500,000 net rental income as it does in the other alternatives