As of December 31, 2021, TJ Smoothie Co, Inc. generated $150,000 of revenue. For the same period, TJ Smoothie Co., Inc. had the following expenses: $25,000 in food ingredients $1,000 signing bonus to Paula $2,000 in cups / straws / utensils $2,500 in meals & entertainment $5,000 in equipment (juice presses, blenders, etc.) $1,000 in utilities $10,000 in employee salary $2,000 in tax exempt municipal bond interest $3,000 federal income taxes paid a) Calculate TJ Smoothie Co., Inc.'s taxable income and E&P (highlighting E&P adjustments) for 2021 with the following assumptions: the equipment was placed into service during 2021, has a five-year life and the depreciation expense in 2021 under ACRS was $1,500. Page | 3 FEDERAL INCOME TAX II - CORPORATE PROFESSOR RICKERT FINAL EXAMINATION DATE: MAY 13, 2024 TIME LIMIT: THREE HOURS OPEN BOOK b) Assume TJ Smoothie's E&P was a deficit of $25,000 in 2021 and positive $80,000 in 2022. TJ Smoothie makes no distributions in 2021, however makes distributions of $40,000 each to Tom, Jerry, and Paula, and $20,000 to Mary in 2022. What are the tax consequences to the individuals and to TJ Smoothie? Assume the