Part1. Evaluation of Income Tax Issues (80 Possible Points). Tom & Donna have asked you to analyze and advise them of the tax consequences of the sale to Tom M Oil

Inc. Tom M & Donna M. Tom M Oil Inc. has always been an S Corporation. Tom and Donna filing status is married filing jointly. For the purposes of your evaluation in this assignment, your clients are Tom and Donna, and are your only concern! Do not analyze or evaluate the consequences to the Buyer! This assignment involves writing a Memorandum evaluating the Income Tax results for Tom M Oil Inc., Tom M and Donna M. Your memo will evaluate qualitatively and quantitatively the sale of assets and liquidation of Tom M Oil Inc. You must discuss all applicable rules and show all calculations. Your Memo addresses only the Income Tax Issues of this scenario - do not discuss operational or any non-tax issue. If you do, points will be deducted.