3. Prepare the initial and year-end U.S. GAAP and tax balance sheets for Ridge Development Group when it is formed as a corporation. Also, prepare the U.S. GAAP and tax income statements for the corporation. Note: You will have to calculate the deferred tax liability, following ASC 805-740-25-3, Business Combinations and Income Taxes, and ASC 740-10-25, Income Taxes, at the time of the formation (assume a 21 percent tax rate) and adjust the deferred tax liability at year-end. The stock ownership is 56 percent for John and 44 percent for Sue. [Complete in Excel showing all your work. Balance Sheet Hints: Remember that a U.S. GAAP Balance Sheet is at FMV while a Tax Balance Sheet is at carryover basis. Use the above references of ASC to help you with the deferred tax liability calculation. Also, remember that the deferred tax liability is the resulting tax liability that appears on the financial statement. Income Statement Hints: On the U.S. GAAP Income Statement, after calculating income before taxes remember that your federal tax expense / benefit must consider both current and deferred taxes. For the deferred taxes, you will need to calculate the ending deferred tax liability for the ending balance sheet the difference in the beginning and ending will be the expense / benefit on the income statement. On the Tax Income Statement, you will need to use the rate schedule in calculating the tax.]