Mr. Jones Smith want’s to buy Smithon Manufacturing because it is very profitable. Right now it has 30 shareholders but no single majority shareholder. It is a C corporation with a fiscal year-end of December 1. In order for me to buy this company, I will need to invest a lot of money in new manufacturing equipment, which means that Smithon will incur a loss for two years. I want to buy the company effective January 1. I think I should buy the company from the shareholders and convert it to an S corporation. Also, I want a fiscal year-end that is also a calendar year-end, i.e., December 31. We should consider whether I could issue shares of stock from Johnson Services which is a C corporation to the shareholders of Smithon in an exchange of shares. That way, the current Smithon owners would become new shareholders (but not owners) of Johnson Services and I would get all their shares of Smithon. If I do so, I could probably offset Smithon’s profits with the losses from Johnson Services.1.