Jackson Corporation prepared the following book income statement for its year ended December 31, 2018:Sales $950,000 Minus: Cost of goods sold (450,000)Gross profit $500,000 Plus: Dividends received on Invest Corporation stock $ 3,000 Gain on sale of Invest Corporation stock 30,000 Total dividends and gain 33,000 Minus: Depreciation ($7,500 + $52,000) $ 59,500 Bad debt expense 22,000 Other operating expenses 105,500 Loss on sale of Equipment 1 70,000 Total expenses and loss (257,000)Net income per books before taxes $276,000 Minus: Federal income tax expense (90,000)Net income per books $186,000 Information on equipment depreciation and sale:Equipment 1: Acquired March 3, 2016 for $180,000 For books: 12-year life; straight-line depreciation Sold February 17, 2018 for $80,000 Sales price $ 80,000 Cost $180,000 Minus: Depreciation for 2016 ( year) $ 7,500 Depreciation for 2017 ($180,000/12) 15,000 Depreciation for 2018 ( year) 7,500 Total book depreciation (30,000)Book value at time of sale (150,000)Book loss on sale of Equipment 1 $(70,000) For tax: Seven-year MACRS property for which the corporation made no Sec. 179 election in the acquisition year and elected out of bonus depreciation.Equipment 2: Acquired February 16, 2017 for $624,000 For books: 12-year life; straight-line depreciation Book depreciation in 2018: $624,000/12 = $52,000 For tax: Seven-year MACRS property for which the corporation made the Sec. 179 election in 2017 but elected out of bonus depreciation.Other information: Under the direct writeoff method, Jackson deducts $15,000 of bad debts for tax purposes. Jackson has a $40,000 NOL carryover and a $6,000 capital loss carryover from last year. Jackson purchased the Invest Corporation stock (less than 20% owned) on June 21,2016, for $25,000 and sold the stock on December 21, 2018, for $55,000.Required:a. For 2018, calculate Jackson's tax depreciation deduction for Equipment 1 and Equipment 2, and determine the tax loss on the sale of Equipment 1.b. For 2018, calculate Jackson's taxable income and tax liability.c. a schedule reconciling net income per books to taxable income before special deductions (Form 1120, line 28).