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(answered) – 1) Bob forms a corporation for his shoe cobbling business

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(answered) – 1) Bob forms a corporation for his shoe cobbling businessDescriptionSolution downloadThe QuestionPlease answer the question attached also please cite all work?1) Bob forms a corporation for his shoe cobbling business ?Shoes R Us? (?SR Corp?). SR Corp in its firstyear has $100k earnings and profits (who thought cobbling could do this???). Bob owns all 1,000 sharesof SR Corp. Bob has a basis in his shares of $50k. SR Corp distributes to Bob $200k at the end of year 1.-What are the tax ramifications to Bob?-What are the tax ramifications to SR Corp?2) Jill forms T corporation and it has -$500k of accumulated E and P, but $50k of current E and P. T corpdistributes $100k to Jill in the current year. Jill has $25k basis in the stock.-What are the tax ramifications to Jill?-What are the tax ramifications to T corp?3) Z corp has one class of shares, and good old Billy owns all 1,000 of them. He has a stock basis of$10,000 ($10/share) that he acquired on January 1, 2012. On January 20, 2014 Z does a 2/1 stock split,thus distributing 1,000 new shares to Billy.-What are the tax ramifications to Billy?-What are the tax ramifications to Z corp?

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