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Jack, a geclogst, had been debating for yesis whesher or not to venture out on his own and operate his own business. He had ceveloped a lot of solld retaitonships vith cieoss. and he belleved that many of them would follow him it he were to leave his cutrent employer As pant of a New Year's resolution. Jeck decioed he would finaly do \& Jack put his: business plan together, and, on January t of thir yeat, Jack opened has docrs for business mas corporation calted Geo-jack (G). Jack is the sole shareholder. Jack reported the foliowng financiai information for the year fassume G. repors od a calendar yeac, uves the accrual method of accounting, and elects to account for inventoryl represented a damage oeposit of 54.000 and ient tor two years (33.000 annuaby). 2. Gi. camed and collected $290000 performing geolocical-related services and seeiling its specialized cigging tool. 3. G) recehed $50 irterest trom municipal bonds and $2.100 interest from other investments. 4. Gu purchised some new equloment in Feonany tor 542,500 it caimed deprectaton on these assess dunng the. year in the amount of 36,540 5. GJ pald 57,000 to buy limury season tickets for Jack's parents for State U football games. 6. GJ pla Jack's father $10,000 tor services that would have cost no more than $6.000 if Jack had hired aty other local business to pectorm the services, While-sack's ded was competent, he does not comrand such a premium. from his other clients. 7. in an anterppt to pet his name and new business fecognized, 63 pald 57000 for a che-page ad in the Geologic Survey. 11 also paio 515.000 in radio ads to be run through the end of December. 8. G.) leased adational offce space in a bulioing downtown. GJ pald rent of 527,000 foe the year, 9. in Novembec Jacks office was browen into and equipreent valued at 55.000 was groien. The tax basis of the eculpment was 55.500 Jack recelved 52.000 of insurance proceeds from the then. 10. GJ incurred a $4.000 fine from the state governthent for digging in an unauthortred digging zone. 11. SJ contributed 53.000 to loobyists for their heip in persuaging the state govemmers to a.ithorize cerrain inauthorized eigging 20nes. 12. On duly t. Ga paid 31.800 for an 18 -month insurance polcy for fts business equipmene. The policy covers the penod duly t of this year through Decemoef 31 of next year. 13. GJ borrowea $20.000 so neto with the comphry's tntial funding needs. 6j used $2,000 of funds to invest in. municipal bonds. At the end of the yeat, 5J pald the 51200 of interest expense that accrued on the loan duthg the year. 14. Jack thes 12 mies from the ofice. He carefuly tracked his mieage and drove his truck. 6,280 mies between the office and his home. He aso drove an adobonal 7,200 miles between the office and traveting to olent shes. Jack: did not wie the truck for any other purposes. He did not xeep track of the specific expenses astocianed with the truck. Howevec, while traveing to a client ste, dack recelved a 5150 speeding ticket. GJ reinbursed Jack for business mileage and for the speeding ticket. 15. 6 purchased two season nckets p20 gamen to athend swite U baseball games for a 1otal of 5100 jeck 100k. existing and prospectve clents to the games to maintain contact and find further work. This was very successty for Jacr as G) gained many new projects through substantial discuassions with the olents following the gates. 16. 6) paia 53.500 for meas at resaatants wituen sales employees met weh prospective cients. 17. G) had a client who needed Jack to pertom work in Florlaa. Because Jack had never been to fionda before, he booked an extra cay and night for sightseeing. Jack spent $400 for airfare and booked a hotet for theee nights (S Bo night (jack staysd two days for business purposes and one oay for personal purposes) He also remed a car for 545 per day. The clent provided jackis meas while jack was doing business, but 6J pald al ergenses. is. Gl pald a total of 510.000 of wages to employees duing the year, and cost of goods sold was 515,000 . Regulred: a. What as Qri nes boinhess income for tax purpotes tor the year? b. Ad a C corporason, does 6 J heve a teqused tax year? if so, what would in be? c. If 6 i were a sole proorietorship, would it nawe a required tax year end? if so, what would in be? a. Is EJ were an 5 corporason, wode en have a tequrectax year end? it so, what woud it be?? X Answer is complete but not antirely correct. Complete this question by entering your answers in the tabs below. What is Gl's net business income for tax purposes for the year? Hek; a geologst, had been oebating for years whernet or not to veocure out on hic owa and operdte his own buthest were to leave his cument employet. As part of a New yeary tescluosh, Jok decised he would foaly do it. Jeck put his butiness plan togethet, acd, on dbauary 1 of this yeat, dack opened his doon tor breanets as a Cocrporamon cated 1. In January, GJ zented a simall bursiness ofice about 12 inles fom Jacks fome ca pala 510000 , ahich tepreserteda darnage ceposit of $4,000 and reht for two years p3 oo0 ancuby. 3. GJ recehed 550 laterest from muhicipol bondir and 5.2100 lraved tom othe limerstinents. 4. Ga purchased some new equiptent in Febraty for 342.500. it charsed deprecimon on there assers ouing the is. year in the amount of 16540 . 5. 6u paid 51000 so buy luayly season tickets foe Jeckrs parents for serte u foocoat games. 6. 6. paid Jack's father $10.000 for sefices viat would hove cost no more than 36.000 if Jack nad Rired ary other local business to pertorin the services. While decks cad yut cemperet ne does not cortmand such a premiun trees nis other clients? 7 in an attemge to gethis name and new bughess recogntred. G. peid 57000 for a onepege ad in the Ceiogic Sumey it ano phid 515.000 in fadio aan ta be fun thitovh the end or becembec. 8. G) reased adoriconal oftce space in a bulloing downtewn. 6.1 pad rent er 5z7000 for the yeor tequipenere was 55.500. jack recetved 32000 of insurance proceeds thith the thet. - uraishortred dighing zones. Ferica duy 1 of this year theough December 31 of next yeuc. 13. G. boncwed 520000 is hes wim the comouny's intial tunding needs. Gd used 92.000 of tunds to invest in muricipal bonds. At the end of the yeac. GJ paid the 51.200 ef irterest eapense that accrued on the loah durting the year. 14. Jeck tives 12 mies fom the office. He careftiy tracked his mileage and orove nis tuck 6.280 mates betieth the oftice and his home. He acso crove an adosional 7200 mies beswes the oflice and travethg to client stes dack did not use the buck tor any other puposes. He did nor keep rack of the notcifc expenses astociated with the besiners milease and for the speedihg ticket. existing and prospeclie clents so fhe gsties to muwtain contact and find futher mork. This was vely succtsana booked an eres dily and night for sighcutchg. Jack spert 5400 for airye and bocked a hotel for itree nights car for 545 per day. The chent provided Jacks meils while Jack was ooing butants. but cil paid all expenses. te. GJ paid a total of $10.000 of whges tis empioyees during the year, and cant of goocs said was 515,060. Pequleet: a. What is Cors net buriness income for tax porposes for the yeart (X) Answer is complete but net entirely correct. Complete this question by entering your answers in the babs bolow. What is Gas net business income fer tak purposes for the ysar