Tan and susan, two calendar year taxpayers, are starting a new business to manufacture and sell digital circuits. they intend to incorporate the business with $600,000 of their own capital and $2 million of equity capital obtained from other investors. the company expects to incur organizational and start-up expenditures of $100,000 in the first year. inventories are a material income-producing factor. the company also expects to incur losses of $500,000 in the first two years of operations and substantial research and development expenses during the first three years. the company expects to break even in the third year and be profitable at the end of the fourth year, even though the nature of the digital circuit business will require continual research and development activities. what accounting methods and tax elections must stan and susan consider in their first year of operation? for each method and election, explain the possible alternatives and the advantages and disadvantages of each alternative.

a) both were commissioned explorers

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711. 

all you have to do is give a good answer with details and the answer has to be understandable and then they will most likely give you the brainliest answer.