You are currently working in a mid-size 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 401k ad he is thinking of using that money to open a used car business. Bob thinks the business might make $300,000 in taxable income Bob's personal wealth including investments in land, stocks, and bonds, is $14,000,000. He reported an interest income of $20,000 and dividend income of $6,000 last year. The $14M includes land worth $9M bought in 1966 for $450,000. Should e operate as a sole prop, partnership, S Corp, or C Corp? Considering transferring a 40% interest in the new business to his daughter, 23 and single. Need to prepare a memorandum to the client recommending a type of business entity, including an appendix of supporting IRS tax schedules and forms. Identify the tax consequences on the sale or exchange of the land consistent with capital gain rules. Consider the selling expense, brokers fees, closing costs, appraisals and surveys and the correct schedule form to complete. Describe the after tax effects on the clients cash flow based on the sale of the land that is needed to provide the funds necessary to start the business . Consider including capital gains tax rules. Explain whether or not the client and his child should take a salary or cash distribution according to tax purposes and IRS Code and regulations. Consider the type of business and the tax effect whether is is salary, dividends, or cash withdrawal.