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Jack, a geologist, had been debating for years whether or not to venture out on his own and operate developed a lot of solid relationships

Jack, a geologist, had been debating for years whether or not to venture out on his own and operate developed a lot of solid relationships with clients, and he believed that many of them would follow him employer. As part of a New Year's resolution, Jack decided he would finally do it. Jack put his business of this year, Jack opened his doors for business as a C corporation called Geo-Jack (GJ). Jack is the so the following financial information for the year (assume GJ reports on a calendar year, uses the accrua 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, 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 special 3. GJ received $70 interest from municipal bonds and $2,250 interest from other investments. 4. GJ purchased some new equipment in February for $50,000. It claimed depreciation on these a 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 perform the services. While Jack's dad was competent, he does not command such a premium fi 7. In an attempt to get his name and new business recognized, GJ paid $7,750 for a one-page ad ir paid $16,500 in radio ads to be run through the end of December. 8. GJ leased additional office space in a building 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 $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 government to authorize zones. 12. On July 1, GJ paid $1,800 for an 18-month insurance policy for its business equipment. The policy year through December 31 of next year. Prey 1 of 1 Next >12. On July 1, GJ paid $1,800 for an 18-month insurance policy for its business equipm year through December 31 of next year. 13. GJ borrowed $20,000 to help with the company's initial funding needs. GJ used $ the end of the year, GJ paid the $1,200 of interest expense that accrued on the lo 14. Jack lives 12 miles from the office. He carefully tracked his mileage and drove his home. He also drove an additional 7,200 miles between the office and traveling to other purposes. He did not keep track of the specific expenses associated with th site, Jack received a $225 speeding ticket. GJ reimbursed Jack for business milea 15. GJ purchased two season tickets (20 games) to attend State U baseball games for prospective clients to the games to maintain contact and find further work. This wa new projects through substantial discussions with the clients following the games 16. GJ paid $3,800 for meals when sales employees met with prospective clients. 17. GJ had a client who needed Jack to perform work in Florida. Because Jack had ne extra day and night for sightseeing. Jack spent $550 for airfare and booked a hot two days for business purposes and one day for personal purposes.) He also rente for 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 go quired: . What is GJ's net business income for tax purposes for the year? . As a C corporation, does GJ have a required tax year? If so, what would it be?. If GJ were a sole proprietorship, would it have a required tax year-end? If so, what w 1. If GJ were an S corporation, would it have a required tax year-end? If so, what woul Complete this question by entering vour answers in the tabs below. Prey 1 of 1 HE Next Required: a. What is GJ's net business income for tax purposes for the year? b. As a C corporation, does GJ have a required tax year? If so, what would it c. If GJ were a sole proprietorship, would it have a required tax year-end? If d. If GJ were an S corporation, would it have a required tax year-end? If so, Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What is GI's net business income for tax purposes for the year? Net business income Required A Required Prey 1 of 1 HHH IL
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