help please $1$ of $3$ ook Required information Comprehensive Problem $22-86($Static$)($LO $22-1,$ LO $22-2,$ LO $22-3,$ LO $22-4,$ LO $22-5,$ LO $22-6)$ While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating Their company, Good to Eat $($GT$),$ specializes in custom$-$sculpted cakes for weddings, birthdays, and other celebrations James and Paul formed the business at the beginning of $2021,$ and each contributed $$50,000$ in exchange for a $50$ percent ownership interest. GTE also borrowed $$200,000$ from a local bank Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains thy GTE's $2021$ activities: $.$ GTE uses the cash method of occounting $($for both book and tax purposes$)$ and reports income on a calendar year basis GTE received $$450,000$ of sales revenue and reported $$210\mathrm{.}000$ of cost of goods sold it did not have any ending Inventory $.$ GTE paid $$30,000$ compensation to James. $$30,000$ compensation to Paul, and $$40,000$ of compensation to other employees $($assume these amounts include applicable payroll taxes. If any$).$ GI paid $$15,000$ of rent for a building and equipment $.$ $$20,000$ for advertising. $$14\mathrm{.}000$ in interest expense $$4\mathrm{.}000$ for utilities, and $$2,000$ for supplies GTE contributed $$5,000$ to charity $.$ GTE received a $$1,000$ qualified dividend from a great stock investment $($it owned $2$ percent of the corporation distributing the dividend$),$ and it recognized $$1\mathrm{.}500$ in short$-$term capital gain when it sold some of the stock On December $1,2021.$ GTE distributed $$20,000$ to James and $$20,000$ to Paul GTE has qualified property of $$300,000($unadjusted basis$)($Leave no answer blank. Enter zero if applicable. Enter N$/$A if not applicable.$)$Comprehensive Problem $22-86($Static$)$ Part a$-32-3.$ Assume James and Paul formed GTE as an S corporation $1.$ Compute the tax basis of Paul's stock in GTE at the end of $20212.$ What amount of Paul's income from GTE is subject to FICA or self$-$employment taxes? $3.$ What amount of income, including its character, will Paul recognize on the $$20,000$ distribution he receives on December $14.$ What amount of tax does GTE pay on the $$1,000$ qualified dividend it received? $1.$ End of Year Stock Basis $2.$ Paul's income $4$ TaxComprehensive Problem $22-86($Static$)$ Part b$-3$ b$-3.$ Assume James and Paul formed GTE as an LLC $1.$ Compute the tax basis of Paul's ownership interest in GTE at the end of $20212.$ What amount of Poul's income from GTE is subject to FICA or self$-$employment taxes? $3.$ What amount of income, including its character $,$ will Paul recognize on the $$20,000$ distribution he receives on December $1?4.$ What amount of tax does GTE pay on the $$1\mathrm{.}000$ qualified dividend it received? $1$ End of Year Stock Basis $2$ Paul's income $4$ Tax wComprehensive Problem $22-86($Static$)$ Part c$-2$ c$-2.$ Assume James and Paul formed GTE as a C corporation $1.$ Compute the tax basis of Paul's stock in GTE at the end of $20212.$ What amount of Paul's income from GTE is subject to FICA or self$-$employment taxes? $3.$ What amount of income, including its character will Poul recognize on the $$20,000$ distribution he receives on December $1?4$ What amount of tax does GTE pay on the $$1,000$ qualified dividend it received? $1$ End of Year Stock Basis $2.$ Paul's income $4.$ Tax