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Part 1Abe is an entrepreneur who likes to be actively involved in his business ventures. He is going to invest $500,000 in a business that he projects will produce a tax loss of approximately $100,000 per year in the short run. However, once consumers become aware of the new product being sold by the business and the quality of the service it provides, he is confident the business will generate a profit of at least $125,000 per year. Abe has substantial other income (from both business ventures and investment activities) each year. Advise Abe on the business form he should select for the short run. He will be the sole owner.Part 2Give the Circular 230 position for three of the following situations that are sometimes encountered in the tax profession:Taking an aggressive pro-taxpayer position on a tax return.Not having a quality review process for a return completed by a partner of the tax firm.Purposely delaying compliance with a document request received from the IRS.Not keeping up with changes in the tax law.Charging $1,500 to complete a Form 1040-EZ.When representing a taxpayer in a Federal income tax audit, charging a fee equal to one-third of the reduction of the tax proposed by the IRS agent.Representing both the husband and wife as to tax matters when negotiating their divorce.Advertising on the Web for new tax clients and including Se habla español in the text of the ads.