ect of each of the following transactions on the taxable business income. (Select "No Effect" from the dropdown if no change in the taxable business income.) Required: a. Joe has signed a contract to sell gadgets to the city. The contract provides that sales of gadgets are dependent upon a test sample of gadgets operating successfully. In December, Joe delivers $13,950 worth of gadgets to the city that will be tested in March. Joe purchased the gadgets especially for this contract and paid $9,750. b. Joe paid $305 for entertaining a visiting out-of-town client. The client didn't discuss bus c. On November 1, Joe paid $6 iness with Joe during this visit, but Joe wants to maintain good relations to encourage additional business next year. 50 for premiums providing for $65,000 of "key man" insurance on the life of Joe's accountant over the ext 12 months. At the $2,750 of his new receivables will be uncollectible end of year O, Joe's business reports $12750 of accounts receivable. Based upon past experience, Joe believes that at least rented equipment to complete a large job. Joe paid $6,750 in December because the rental agency rental of three months ($2,250 per month), Joe completed the job before year-end, but he returned the required a minimum equipment at the end of the lease. Joe hired a new sales representative a Joe ended up reimbursing his employee $550 for airfare, provi s an employee and sent her to Dallas for a week to contact prospective out-of-state clients. $600 for lodging, $500 for meals, and $400 for entertainment (Joe ded adequate documentation to substantiate the business purpose for the meals and entertainment). Joe requires the employee to account for all expenditures in order to be reimbursed. g. Joe uses his BMW (a personal auto) to travel to and from his residence to his factory. However, he switches to a business vehicle if e needs to travel after he reaches the factory. Last both to travel to and from the factory and to visit work sites. He drove 245 miles visiting work sites and 96 miles driving to and from the factory from his home. Joe uses the standard mileage rate to determine his auto-related business expense answer to whole number. Use standard mileage rate.) Joe paid a visit to his parents in Dallas over the Christmas holidays. While he was in the city, Joe spent $175 to attend a business symposium. Joe paid $450 for airfare, $150 for meals during the symposium, and $95 on cab fare to the symposium. month, the business vehicle broke down and he was forced to use the BMW s. (Round you