76. sellin Tony and Susan are starting a retail businessg formal wear for men and women.They estimate profits and losses for the next five years to be: ($20,000), ($10,000),($5,000), $10,000, and $50,000 respectively. Susan will work full time in the storewhile Tony will be involved in managing the operations. Susan is married to Tom andis in the 28% marginal tax bracket. Tony is single and has other sources of income thatput him in the 28% marginal tax bracket. Susan will be paid a salary of $30,000 forthe first five years, after which her compensation will be reviewed. Tony and Susaneach contribute $50,000 to get the business started. The remaining question facingTony and Susan is which business form to use for the business. They believe theyshould operate as a partnership but have been informed that forming a corporationmight be a better option since it would limit their liability. Prepare an analysis todetermine whether Tony and Susan should operate their business as a partnership or acorporation.77. Tory, Becky, Hal, and Jere form TBHJ Partnership as equal owners. TBJH Partnershiprents heavy tools and equipment. Becky and Hal are married to each other while Toryand Jere are brothers but are not related to Becky or Hal. Because Becky and Hal haveother jobs, Tory and Jere are to be the full-time managers of the business. Although Toryand Jere will run the business full-time, Becky will help in the store on weekends and someevenings. Hal will lend his financial expertise to the firm by doing the bookkeeping andpreparing the tax returns. Even though the four have equal ownership interests, it is notclear how each owner is to be compensated so that there is equity among the partners yetrewards for those engaged in specific tasks. Hal has told the others that they cannotreceive deductible salaries. However, he suggests that guaranteed payments be made toeach partner/employee for an agreed-upon amount based on the value of the services eachprovides and/or the time spent at the store. Discuss the ramifications of employing thisplan and whether this is an equitable way to allocate compensation among the partners.What are the implications of this arrangement for the partners and the partnership?