You are currently working at a mid - sized certified public accounting firm. Your client is Bob Jones. Bob, age 60 and single, has recently retired from IBM. He has $690,000 available in his 401(k) fund and he is thinking of using that money to open a used car business that will be located at 210 Ocean View Drive in Pensacola, Florida. Bob has estimated that the business might make $300,000 in taxable income. Bobs personal wealth including investments in land, stocks, and bonds is about $14,000,000. He reported a n interest income of $20,000 and dividend income of $6,000 last year. The $14,000,000 includes land worth $9,000,000 that Bob bought in 1966 for $450,000. Bob has hired your firm for professional advice regarding whether he should operate as a sole proprietor, a partnership, an S corporation, or a Corporation. He is also considering transferring a possible 40% interest in his new business to his daughter Mandy, age 23 and single Please complete the following:. A. Accurately compute the property disposition capital gain and taxation of gross income. B. Explain whether the client and his child should take a salary or cash distribution according to tax purposes and the internal revenue code and treasury regulations. C. Identify the Tax Consequences on the sale or exchange of the land consistent with capital gains rules. Consider the selling expenses, broker fees, closing costs, appraisals, and surveys and the correct tax schedule form to complete.