Jock, a geoiogkt, had been debating for years whether or not to wentare out on his own and operate his own business the had employer As nart of a New Years resolition. Jack decided he would finaly oo it jack put his buainess plan thgether and. on lanuay 1. of Eis yeat, Jack opened fis doors for business as a C corpontion called Geo-leck iG S fack is the sole sharehalider Jack feponed the folowing financial information foe the yeat (assume G.) reports on a calendar yeat uses the ascrual method of account ing and efects to accoart for imventory? 1. in Sanusy. Ga rented a unail tuviness oftice about 12 miles trom jack's home. 6.j bod 512.400. which represented a damage depost of 14.200 and tent far two yeas if 13,720 ahnualily 3. Gu received 590 ifterest trom muncipel bonds and 52300 imecest trom other inveuments. 4. G3 purchased some new equipment in feoruaty for 545,500 . E cuimed depreciaten on these ascets dalmo the year in the amourt of 57.140 peiform the services: While dacies ded was comperert. he dons not compand such a sismum tam his other cleats 7. In an attemer to get his name and new bushess recogniued, Gu pod 37,400 foc a one-pege sd in me Geotogic Surve? it aso paid 13. GJ borrowed $20,000 to help with the compary's initial funding needs. 6J used $2.000 of funds to irvest in municipal bonds. At the end of the year, GJ paid the $1,200 of interest expense that accrued on the losi during the year. 14. Jack lives 12 miles from the office. He casefully tracked his milieage and drove his truck 6,280 miles between the office and his home. He also drove an additional 7,200 mies traveling 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 cient site, Jeck recelved a $190 speeding ticket. GJ reimbursed Jack for business mileoge and for the speeding ticket. 19. GJ purchased two season tickets (20 games) to attend State U bsseball games for a total of $1.260. Jack took existing and prospective clients to the games to maintain contact and find furthet work This was very successful for Jack as GJ gained mary new projects through substantal discussions with the clients following the games. 10. G3 paid $3.660. for meals at restaurants when sales employees met win prospective clients. 17. GJ had a cient who needed Jack to perform work in Flonida Becase Jsck hed never been to Flonidh before, he cooked an entra doy and night for sightseeing. 3ack spent 5480 for airgre and booked a hotel foe three nlghts i $160 inight. Uack ptoyed two drys for business purposes and one day for personsi purposes) He al so rented a car for $85 per doy. The elent provided lacks nueais while Jack was doing business, but Gal poid olf expenses. 18. CI peid a total of $18.000 of weges to employees during the year, and cost of goods sold was $23.000. Complete this question by entering your answers in the tabs below. What is GJ's net business income for tax purposes for the year
