Hello! I have been working on this case for a few hours and I could really use some help. Thank you so much in advance.

CASE The Leaping Lizard (hereafter, the Lizard) is a popular chain of Mexican-themed restaurants with locations in tourist hotspots across the United States, including Miami, Chicago, Las Vegas, New York, Austin, and Seattle. The Lizard bills itself as "America's Greatest Mexican Restaurant" and specializes in traditional Mexican dishes and six flavors of margaritas that are mixed tableside at each location. The Lizard has been owned and operated as a private company since its founding in 1978 by the Rodriguez family of Miami, FL. One of the great traditions at the Lizard is the "Cash Clap." Patrons personalize dollar bills by writing a message or drawing a picture with a permanent marker and then stapling the dollar to the ceiling, wall, doorframe, or any other available surface in the restaurant. As each dollar goes up, all the employees stop, clap the special "cash clap" rhythm in unison, and let out an appreciative whoop. Patrons supply the dollar bills themselves, although the wait staff will make change for customers who need dollar bills. Each customer is allowed to place as many dollar bills as they like on the walls, and most place at least one dollar bill on the wall per visit. Over the years, this tradition has grown in popularity, and the Rodriguez family estimates that the average restaurant has accumulated more than $1 million in personalized dollar bills. The dollars are not regularly counted, and the wait staff does not participate in any accounting for dollar bills, other than by asking that customers not remove existing dollar bills (a problem that the company frequently encounters). Historically, the company has prepared cash basis financial statements for internal use. However, Christina Rodriguez (the founder's daughter) has recently obtained control of the company and is considering taking the company public in order to pursue an aggressive, nationwide expansion plan. As part of this process, she has employed your firm to prepare a set of financial statements in accordance with U.S. GAAP. Preparation of the financial statements is relatively straightforward, with the exception of the accounting surrounding the dollars the company receives from customers as part of the "Cash Clap" tradition. Management has previously ignored these dollars for accounting purposes.Tax Issues 1. How should the company report the "Cash Clap" transaction for federal income tax purposes? Consider that while the role of a tax accountant/adviser is to be an advocate for the taxpayer, professional standards require consideration of evidence in support of and contrary to the desired conclusion. 2. Assuming the company is organized as a C Corporation, where would the company report the "Cash Clap" transaction on its federal income tax return? (Instructions for tax returns are useful in this compliance function.) 3. Assume that you conclude the "Cash Clap" dollars are income. Include in your memo what the self- employment tax consequences would be if the company was organized as an S Corporation, partnership, or sole proprietorship instead of a C Corporation