Today is April 12, 2024, and you, CPA, are a senior accountant with Kenney & Niu LLP. You just got out of a meeting with a new client, Alan Morneau, who has approached your firm for some tax advice. After finishing your meeting, you enter the office of the firm's tax partner, Emily Kenney, to discuss next steps. "Alan is an electrical contractor and has been operating as a sole proprietor for the past three years ever since he completed his apprenticeship," you explain. "He has tracked his revenue and expenses closely and has provided a draft income statement for the year ended December 31, 2023 (Appendix I). "Alan continues to grow his business and now has seven employees working for him, including his spouse. He keeps getting more work for his team, and profits have been steadily rising each year. Alan keeps hearing about how small business tax rates have been decreasing the past few years, and he is wondering if it makes sense to incorporate his business at this point."