Jack, a geologist, nad been debating tor years wnether or not to venture out on nis own and operate nis own business. He nad 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 ployer. 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 shareholder. Jack reported the following financial information for the year (assume GJ reports on a calendar year and uses the accrual method of accounting). a. In January, GJ rented a small business office about 12 miles from Jack's home. GJ paid $14,800, which represented a damage deposit of $5,920 and rent for two years ($4,440 annually). b. GJ earned and collected $370,000 performing geological-related services and selling its specialized digging tool c. GJ recelved $75 interest from municipal bonds and $2,260 interest from other investments. d. GJ purchased some new equipment in February for $50.500. It claimed depreciation on these assets during the year in the amount f GJ paid Jack's father $13,200 for services that would have cost no more than $7,920 if Jack had hired any other local business to g. In an attempt to get his name and new business recognized, GJ paid $7,800 for a one-page ad in the Geologic Survey. It also paid h. GJ leased additional office space in a building downtown. GJ paid rent of $31,000 for the year of $7,740. GJ paid $7,800 to buy luxury season tickets for Jack's parents for State U football games perform the services. While Jack's dad was competent, he does not command such a premium from his other clients. $16,600 in radio ads to be run through the end of December i. In November, Jack's office was broken into and equipment valued at $5,800 was stolen. The tax basis of the equipment was $6,300. Jack received $2,320 of insurance proceeds from the theft. J GJ incurred a $4,400 fine from the state government for digging in an unauthorized digging zone. k. GJ contributed $3,320 to lobbyists for their help in persuading the state government to authorize certain unauthoriz ng zones. L 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. GJ borrowed $20,000 to help with the company's initial funding needs. GJ used $2,000 of funds to invest in muni the end of the year, GJ paid the $1,200 of interest expense that accrued on the loan during the year. I bonds. At n. Jack lives 12 miles 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 7,200 miles between the office and traveling to 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 received a $230 speeding ticket. GJ reimbursed Jack for business mileage and for the speeding ticket o. GJ purchased two season tickets (20 games) to attend State U baseball games for a total of $1,420. Jack took existing and Jack recelved a $230 speeding ticket. GJ reimbursed Jack for business mileage and for the speeding ticket prospective clients to the games to maintain contact and find further work. This was very successful for Jack as GJ gained many o. GJ purchased two season tickets (20 games) to attend State U baseball games for a total of $1,420. Jack took existing a new projects through substantial discussions with the clients following the games. p. GJ reimbursed employee-salespersons $3,820 for meals involving substantial business discussion. q. 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 $560 for airfare and booked a hotel for three nights ($200ight). (Jack stayed two days for business purposes and one day for personal purposes.) He also rented a car for $125 per day. The client arranged for Jack's meals while Jack was doing business. GJ reimbursed Jack for all expenses. Required: a. What amount will increase taxable income (positive) or reduce taxable income (negative) for each of the above scenarios? b. As a C corporation, does GJ have a required tax year? If so, what would it be? c. If GJ were a sole proprietorship, would it have a required tax year-end? If so, what would it be? d. If GJ were an S corporation, would it have a required tax year-end? If so, what would it be