Task 3 Review and Revise. The dividend and charitable contribution are incorrect for a Corporation on Answer Template spreadsheet Tab 2 and the Taxable Income and dividend received is incorrect on the S- Corporation Tab 3. Please would you correct these 4 figures within the attached Answer Template (they have been highlighted in their respective Cells)? The Task instructions are on the Word Doc and the Answer Template is on the Excel Doc attached.

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 1,757,563 33,941 31,396 874,725 817,501 $75,000 892,501 See comment boxes for further explanations Deductions Salaries and Wages Advertising Travel Expenses Depreciation Office Expenses Organization Expenses Casualty Loss (Fire) Charitable Contributions 165,941 55,000 59,000 45,000 11,000 5,000 120,000 50,000 Dividends Received Deduction Total Deductions 52,500 563,441 Taxable Income Tax Rate 20% Income Tax Owed 329,059 20% 65,812 Explanations for Casualty and Charitable The casualty loss is the amount lost after the fire. Business losses are fully deductible without limitations. Charitable contribution deductions are limited to 10% of taxable income. 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