Your friends plan to form a corporation for purposes of constructing a shopping center.Charlie will be contributing the land for the project and wants more security than shareholder status provides.He is contemplating two possibilities:receive corporate bonds for his land, or take out a mortgage on the land before transferring it to the corporation.Comment on the choices Charlie is considering.What alternatives can you suggest?

When discussing this with Charlie, he also brought up the issue of deductible net operating losses.Please explain how Net Operating Losses are handled for a corporation.