A company has the following income, expense, and loss business activities for the current year.

• Sales: $850,000
• Tax exempt interests: $40,000
• Long-term capital gain: $85,000
• Short-term capital loss: $35,000
• Passive activity loss: $20,000
• Costs of goods sold: $480,000
• Depreciation: $40,000
• Section 179 expense: $50,000
• Other operating expenses: $200,000
• Net operating loss (from previous year): $24,000
• Perform the following steps to complete the assignment:

1. Using the Excel spreadsheet template provided, calculate the taxable income for each of the following business entity scenarios. Indicate which tax form(s) a preparer would complete for the business activities in your calculation, and list them in the Tax Form(s) section.

• Sole proprietorship
• Partnershipequally owned by Vinnie and Chandra
• C Corporationowned by Kim
• S corporationowned equally by Henry, Iris, and Jasmine

2. Any businessactivities not included inyourtaxable incomecalculation must be separately listed with a brief explanation of why the item is excluded from taxable income.