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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 GeoJack 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 In January, GJ rented a small business office about miles from Jack's home. GJ paid $ deposit of $ and rent for two years $ annually GJ earned and collected $ performing geologicalrelated services and selling its special GJ received $ interest from municipal bonds and $ interest from other investments. GJ purchased some new equipment in February for $ It claimed depreciation on these a amount of $ GJ paid $ to buy luxury season tickets for Jack's parents for State U football games. GJ paid Jack's father $ for services that would have cost no more than $ if Jack had perform the services. While Jack's dad was competent, he does not command such a premium fi In an attempt to get his name and new business recognized, GJ paid $ for a onepage ad ir paid $ in radio ads to be run through the end of December. GJ leased additional office space in a building downtown. GJ paid rent of $ for the year. In November, Jack's office was broken into and equipment valued at $ was stolen. The tax $ Jack received $ of insurance proceeds from the theft. GJ incurred a $ fine from the state government for digging in an unauthorized digging zone GJ contributed $ to lobbyists for their help in persuading the state government to authorize zones. On July GJ paid $ for an month insurance policy for its business equipment. The policy year through December of next year. Prey of Next On July GJ paid $ for an month insurance policy for its business equipm year through December of next year. GJ borrowed $ to help with the company's initial funding needs. GJ used $ the end of the year, GJ paid the $ of interest expense that accrued on the lo Jack lives miles from the office. He carefully tracked his mileage and drove his home. He also drove an additional 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 $ speeding ticket. GJ reimbursed Jack for business milea GJ purchased two season tickets 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 GJ paid $ for meals when sales employees met with prospective clients. GJ had a client who needed Jack to perform work in Florida. Because Jack had ne extra day and night for sightseeing. Jack spent $ 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. GJ paid a total of $ of wages to employees during the year, and cost of go quired: What is GJs 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 yearend? If so what w If GJ were an S corporation, would it have a required tax yearend? If so what woul Complete this question by entering vour answers in the tabs below. Prey of HE Next Required: a What is GJs 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 yearend? If d If GJ were an S corporation, would it have a required tax yearend? 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 of HHH IL
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