Jack, a geologist, had been debating for years whether or not to venture out on his own and operate his own business. He had developed a lot of solid relationships with clients, and he believed that many of them would follow him if he were to leave his current employer. As part of a New Year's resolution, Jack decided he would finally do it. Jack put his business plan together, and, on January 1 of this year, Jack opened his doors for business as a C corporation called Geo-Jack (GJ), Jack is the sole sharehoider. Jack reported the following financial information for the year (assume GJ reports on a calendar year, uses the accrual method of accounting, and elects to account for inventory). 1. In January, GJ rented a small business office about 12 miles from Jack's home. GJ paid $14,500, which represented a damage deposit of $5.800 and rent for two years ($4.350 annually) 2. GJ earned and collected $365.000 performing geological-related services and selling its specialized digging took. 3. GJ received $70 interest from municipal bonds and $2.250 interest from other investments. 4. 6J purchased some new equipment in February for $50.000. It claimed depreciation on these assets during the year in the amount of $7,665. 5. GJ paid $7.750 to buy luxury season tickets for Jack's parents for State U football games. 6. GJ paid Jack's father $13,000 for services that would have cost no more than $7,800 if Jack had hired any otheriocal business to perform the services. While Jack's dad was competent, he does not command such a premium from his other cients. 7. In an attempt to get his name and new business recognized, GJ paid $7.750 for a one-page adin the Geobgits suncy it also paid $16.500 in radio ads to be run through the end of December 8. G. J leased additional office space in a bulidine downtown. GJ oaid rent of $30750 for the ved 8. GJ leased additional office space in a bulding downtown. GJ paid rent of $30,750 for the year. 9. In November, Jack's office was broken into and equipment valued at $5,750 was stolen. The tax basis of the equipment was $6,250. Jack received $2,300 of insurance proceeds from the theft. 10. GJ incurred a $4,375 fine from the state government for digging in an unauthorized digging zone. 11. GJ contributed $3,300 to lobbyists for their help in persuading the state govemment to authorize certain unauthorized digging zones. 12. On July 1, GJ paid $1,800 for an 18 -month insurance policy for its business equipment. The policy covers the period July 1 of this year through December 31 of next year 13. GJ borrowed $20.000 to hep with the company's initial funding needs. GJ used $2.000 of funds to invest in municipal bonds. At the end of the year. GJ paid the $1,200 of interest expense that accrued on the loan during the yearf, 14. Jack lives 12 mi es from the office. He carefully tracked his mileage and drove his truck 6.280 miles between the office and his home. He also drove an additional 7200 miles troveling between the office and client sites Jack did not use the truck for any other purposes. He did not keep track of the specific expenses associated with the truck. However, while traveling to a client site. Jack recelved a $225 speeding ticket. GJ ieimbursed Jack for business milleage and for the speeding ticket. 15. GJ purchased two season tickets (20 games) to attend State U baseball games for a total of $1,400 Jack took existing and prospective clients to the games to maintain contact and find further work. This was very successful for jack as Gl gained many. new projects throughy substantial discussions with the cients following the gomes. 16. 6J paid $3.800 for meals arrestaularits when sales employees met with prospective cilents 16. GJ paid $3,800 for meals at restaurants when sales employees met with prospective clients. 17. GJ had a client who needed Jack to perform work in Florida. Because Jack had never been to Florida before. he booked an extra day and night for sightseeing. Jack spent $550 for airfare and booked a hotel for three nights (\$195ight, (Jack stayed two days for business purposes and one day for personal purposes.) He also rented a car for $120 per day. The client provided Jack's meals while Jack was doing business, but GJ paid all expenses. 18. GJ paid a total of $25,000 of wages to employees during the year, and cost of oods sold was $30,000. Required: a. What is 6J 's net business income for tax purposes for the year? b. As a Corporation, does 6J have a required tax year? if so, what would it be? c. If GJ were a sole proprietorstip, would it have a required tax year-end? it so, what would it be? d. If G J were an S corporation, woud it have a required tax yearend? If so, what would it be? Complete this question by entering your answers in the tabs below. What is GJ's net business income for tax purposes for the year