Jack, a geologist, had been debating for years whether or not to venture out on his own and operate h developed a lot of solid relationships with clients, and he believed that many of them would follow him employer. As part of a New Year's resolution, Jack decided he would finally do it Jack put his business of this year, Jack opened his doors for business as a C corporation called GeoJack GJ Jack is the sc the following financial information for the year assume GJ reports on a calendar year, uses the accrua elects to account for inventory
In January, GJ rented a small business office about miles from Jack's home. GJ paid $ deposit of $ and rent for two years $ annually GJ earned and collected $ performing geologicalrelated services and selling its special GJ received $ interest from municipal bonds and $ interest from other investments, GJ purchased some new equipment in February for $ It claimed depreciation on these a: amount of $ GJ paid $ to buy luxury season tickets for Jack's parents for State U football games. GJ paid Jack's father $ for services that would have cost no more than $ if Jack had perform the services. While Jack's dad was competent, he does not command such a premium f In an attempt to get his name and new business recognized, GJ paid $ for a onepage ad ir paid $ in radio ads to be run through the end of December. GJ leased additional office space in a building downtown. GJ paid rent of $ for the year. In November, Jack's office was broken into and equipment valued at $ was stolen. The tax $ Jack received $ of insurance proceeds from the theft. GJ incurred a $ fine from the state government for digging in an unauthorized digging zone GJ contributed $ to lobbyists for their help in persuading the state government to authorize zones. On July GJ paid $ for an month insurance policy for its business equipment. The policy year through December of next year.
On July GJ paid $ for an month insurance policy for its business equipm year through December of next year.
GJ borrowed $ to help with the company's initial funding needs. GJ used $ the end of the year, GJ paid the $ of interest expense that accrued on the lo: Jack lives miles from the office. He carefully tracked his mileage and drove his t home. He also drove an additional miles between the office and traveling tc other purposes. He did not keep track of the specific expenses associated with th site, Jack received a $ speeding ticket. GJ reimbursed Jack for business milee GJ purchased two season tickets games to attend State U baseball games fo prospective clients to the games to maintain contact and find further work. This wa new projects through substantial discussions with the clients following the games GJ paid $ for meals when sales employees met with prospective clients. GJ had a client who needed Jack to perform work in Florida. Because Jack had ne extra day and night for sightseeing. Jack spent $ for airfare and booked a hot, two days for business purposes and one day for personal purposes. He also rente for Jack's meals while Jack was doing business, but GJ paid all expenses. GJ paid a total of $ of wages to employees during the year, and cost of gor
quired:
What is GJs net business income for tax purposes for the year? As a C corporation, does GJ have a required tax year? If so what would it be If GJ were a sole proprietorship, would it have a required tax yearend? If so what w I. If GJ were an S corporation, would it have a required tax yearend? If so what woulc
Comnlete this auestion hv enterina vour answers in the tahs helow.
What is Gs net business income for tax purposes for the year?
