Please would you complete question A and B on the attached spreadsheet? I have provided the spreadsheet template, financial information, and question for review.

Corporation Tax Return ABC Company Year 10 Income Gross Sales Less: Returns & Allowances Less: Sales Discounts Less: Cost of Goods Sold Gross Profit Other Revenue: Dividends Received Total Revenue See comment boxes for further explanations Deductions Salaries and Wages Advertising Travel Expenses Depreciation Office Expenses Organization Expenses Casualty Loss (Fire) Charitable Contributions Explanations for Casualty and Charitable Dividends Received Deduction Total Deductions Taxable Income Tax Rate 20% Income Tax Owed 20% ACA1 302(2).2.4-01-05, 07-10 S-Corporation Tax Return Template Sub Chapter S Corporation Tax Return ABC Company Year 10 INCOME PER BOOKS Income Gross Sales Less: Returns & Allowances Less: Sales Discounts Less: Cost of Goods Sold Gross Profit Other Revenue: Dividends Received Total Revenue Deductions Salaries and Wages Advertising Travel Expenses Depreciation Office Expenses Organization Expenses Casualty Loss (Fire) Charitable Contributions Dividends Received Deduction Total Deductions Subchapter S net Income per books SUBCHAPTER S Taxable Income Net Income per books Separately Stated Items Deduct: Dividend Income Dividend income subtotal Deductions Subtotal: Add: Charitable Contributions Casualty Loss Additions Subtotal: Student answer: The statements below are for Year 10. Using the data on these financial statements prepare the tax return income statement for Year 10. ABC Company, Inc. Income Statement December 31, Year 10 Revenues: Wholesale Sales Retail Sales Sales Returns and Allow Sales Discounts Net Sales ABC Company, Inc. Balance Sheet December 31, Year 10 1,697,063 60,500 -33,941 -31,396 1,692,226 Expenses: Cost of Goods Sold 874,725 Gross Margin 817,501 Administrative Expenses: Office Supplies 5,000 Office Machine Rental Office Staff Payroll Charitable Contributions 6,000 60,000 50,000 Selling Expenses: Advertising Sales Base Pay Sales Commission 55,000 72,000 33,941 Assets Current Assets: Cash Accounts Receivable Prepaid Insurance Raw Materials Inv. Work in Process Inv. Finished Goods Inv. Prop, Plant, & Equip: Land Building Accum Dep-Building Manufacturing Equipment Accum Dep-Equipment Investments: 20% Interest in XXX Corporation Intangible Assets: Patents Organization Costs Total Assets Travel Expenses: Airfare Lodging Miscellaneous 25,000 28,000 6,000 Depreciation Expense 45,000 Net Income from Operations Other Revenue: Dividend Net Income (Loss) 385,941 431,559 75,000 506,559 435,780 367,000 20,000 60,000 26,000 58,000 Liabilities Current Liabilities: Accounts Payable Notes Payable 165,000 19,000 Long Term Liabilities: Notes Payable Mortgage Payable 78,000 235,620 Stockholders' Equity 482,000 300,000 60,000 140,000 25,000 Common Stock 817,170 240,000 115,000 Paid in Capital in Excess Retained Earnings 1,821,931 506,559 Liabilities and Equity 3,643,280 1,800,000 15,000 24,500 3,643,280 SUBDOMAIN 302.2 FEDERAL INCOME TAX Competency 302.2.4: Tax Treatments for Corporations The student determines tax treatments for corporations. Objectives: 302.2.401: Calculate taxable income or loss for a corporation. 302.2.402: Calculate taxable income or loss for an scorporation. 302.2.403: Reconcile book income and taxable income for a corporation. 302.2.404: Reconcile book income and taxable income for an scorporation. 302.2.405: Calculate the tax treatment for net operating losses and distributions to shareholders for a corporation. 302.2.407: Calculate special deductions allowed a corporation. 302.2.408: Calculate special deductions allowed an scorporation. 302.2.409: Calculate the tax treatment limitations for expense items on the corporate tax return. 302.2.410: Calculate the tax treatment for capital gains and losses for a corporation and scorporation. Given: On January 1, Year 10, ABC Company applied for and was granted a charter to begin business as a corporation changing from the original sole proprietorship business form. (The Year 6 Income Statement and Balance Sheet are given in the attached document \"Corp and SCorp Tax ReturnFinancial Statements.\"). During the organization of ABC Company as a Corporation, the company incurred legal expenses in the amount of $15,000, state filing fees in the amount of $2,000, accounting fees in the amount of $5,000, and printing expenses related to the sale of stock certificates in the amount of $2,500. The Year 10 corporate balance sheet includes the organization costs. The corporation will take advantage of any allowed expense for the year on its Year 10 tax return. No amortization will be recognized in this first year of incorporation. During Year 10 the following transactions occurred: A fire broke out in the retail store causing $200,000 in damages. ABC Corporation received $80,000 from the insurance company for damages. ABC Corporation donated $50,000 to a homeless shelter for improvements. The original ABC Company had the following short and longterm gains and losses: Year 5Net shortterm capital gain$20,000 Year 6Net longterm capital loss$15,000 Year 7Net longterm capital gain$10,000 Year 8Net shortterm capital loss$25,000 Year 9Net shortterm capital gain$30,000 ABC Corporation received $75,000 in dividends from XYZ Corporation. ABC owns 20% of XYZ. At the end of the year, the ABC Corporation board of directors is considering applying for SCorporation status with the IRS. Task: Note: For all calculations in this task, assume a marginal tax rate of 20%. A. Using the financial statements provided (see the attached document \"Corp and SCorp Tax Return Template\"), correctly perform the following calculations for ABC as a corporation: 1. Taxable income or loss for ABC as a corporation 2. Special tax deductions allowed for ABC as a corporation 3. Tax treatment of capital gains and losses for ABC as a corporation (Capital gains/losses do not apply to the corporation. They would have been closed out with the change of business form.) 4. The expense item limitations on a corporate tax return for ABC as a corporation B. Using the financial statements provided (see the attached document \"Corp and SCorp Tax Return Template\"), correctly perform the following calculations for ABC as an scorporation: 1. Taxable income or loss for ABC as an scorporation 2. Special tax deductions allowed for ABC as an scorporation 3. Tax treatment of capital gains and losses for ABC as an scorporation 4. The expense item limitations on a corporate tax return for ABC as an scorporation C. Write a brief essay (suggested length of a total of 1-2 pages) in which you do the following: 1. Describe how you would reconcile the book income to tax income differences for ABC as a corporation and an scorporation. 2. Make a recommendation for the board of directors about whether or not ABC should become an scorporation, based on your calculations. (You may present this portion of your essay in memo format if you wish.) D. When you use sources, include all intext citations and references in APA format. Note: For definitions of terms commonly used in the rubric, see the attached Rubric Terms. Note: When using sources to support ideas and elements in a paper or project, the submission MUST include APA formatted intext citations with a corresponding reference list for any direct quotes or paraphrasing. It is not necessary to list sources that were consulted if they have not been quoted or paraphrased in the text of the paper or project. Note: No more than a combined total of 30% of a submission can be directly quoted or closely paraphrased from sources, even if cited correctly. For tips on using APA style, please refer to the APA Handout web link included in the APA Guidelines