Accounting Study Essay

a. Identify significant tax and nontax issues or concerns that may differ across entity types.b. Provide your recommendation for forming CCS as a C confederation, S corporation, LLC, or partnership. Explain your reasoning for your choice of entity, identify any issues that you may still be concerned about, and suggest recommendations for dealings with the concerns.Chapter 19 Problem 39(LO2) Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporations stock. The property transferred to the corporation had the following fair market values and tax-adjusted basesFMV Tax-Adjusted BasisInventory $ 20,000 $ 10,000Building 150,000 100,000Land 230,000 300,000Total $400,000 $410,000The corporation also faux a mortgage of $100,000 attached to the building and land. The fair market value of the corporations stock received in the exchange was $300,000. The transaction met the requirements to be tax-d eferred under 351. a. What amount of gain or loss does Zhang realize on the transfer of the property to her corporation?b. What amount of gain or loss does Zhang select on the transfer of the property to her corporation?c. What is Zhangs tax basis in the stock she receives in the exchange?d. What is the corporations tax-adjusted basis in each of the assets received in the exchange?Assume the corporation assumed a mortgage of $500,000 attached to the building and land.e. How much, if any, gain or loss does Zhang make out on the exchange assuming the revised facts?f. What is Zhangs tax basis in the stock she receives in the exchange?g.What is the corporations tax-adjusted basis in each of the assets received in the exchange?