Prepare the TAX INCOME for Smiles, LLC based off the below Book Income Statement. You will have to make some adjustments due to Book/Tax differences.

The income statement (cash basis) per books for the first year of Smiles, LLC operations is as follows:

Sales Revenue	$291,000
COGS, Payroll and G&A Exp	(130,400)
Depreciation Exp Equip #1	(7,000)	($21,000 3 yrs)
Depreciation Exp Equip #2	(3,600)	($36,000 5 yrs x year)
Net Income per Books	$ 150,000

The Accounts Receivable of $15,000 was paid off during the year.