Able is considering what form of entity to operate a new business. The new business's projected income and losses for the first two years of operation, as well as Ables income from other sources, are listed in the table below.

What will be the total annual tax cost for the new venture and the owner for years 1 and 2?

All numbers in (000)	Year 1	Year 2
New Business
Revenue from Sales	50,000	70,000
Deductible Expenses	60,000	30,000
Federal Corporate Income Tax Rate	35%	35%
Able's Taxable Income from Other Sources	40,000	50,000
Federal Individual Income Tax Rate	39%	39%

Requirements:

Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that your thought process can be examined. Make effective use of comments to convey your thought process as well. No hard coding of solutions is permitted. Submit a single MS Excel file for grading.