Paul and Jon are partners in a small successful restaurant. They want to expand but need a second location. They think their business has a FMV of $1,000,000 (and has a basis of $500,000 to Paul and a basis of $250,000 to Jon).Jason is a real estate broker and investor. He normally buys real estate and sells it quickly. He is fully licensed as a real estate broker in Texas. Jason has a vacant lot that he paid $300,000 several years ago. The FMV is currently $500,000.All three create JPJ, Inc with one third ownership each.In year one they consider the following: a.The corporation will distribute out to Jason a part of the parking lot (of the old location). The FMV is $100,000 and the basis to the corporation is $75,000. Jason will contribute the new land with a FMV of $150,000 plus $50,000 in cash. b.Separately, they want to pay a distribution of $25,000 to each shareholder in cash. The EP balance is zero for accumulated and $40,000 for current. Issues: -What is the income tax consequences idea #4a?-What is the income tax consequences idea #4b?-Is there a better economic structure that will give the three people the result they desire? If so what is it and defend the idea.