$2)$ You are to use any Artificial Intelligence programs. $3)$ You are allowed to use the internet for research$\mathrm{.}4)$ You must cite your support for the answers such as code sections and regulations$\mathrm{.}5)$ a$)$ What is AJs net business income for tax purposes for the year? You must show your work to earn points. Simply reporting the bottom line will not count. You can use tax forms, excel, etc to calculate the net business income. b$)$ As a C corporation, does AJ have a required tax year? If so$,$ what would it be$?6)$ Use either $2023$ or $2024$ tax law$\mathrm{.}7)$ Good luck. CaseJim, an archeologist, had been debating for years whether or not to venture out on his own and operate his own business. He had developed a lot of solid relationships with clients, and he believed that many of them would follow him if he were to leave his current employer. As part of a New Years resolution, Jim decided he would finally do it$.$ Jim put his business plan together, and on January $1$ of this year, Jim opened his doors for business as a C corporation called Arch$-$Jim $($AJ$).$ Jim is the sole shareholder. Jim reported the following financial information for the year $($assume AJ reports on a calendar year, uses the accrual method of accounting, and elects to account for inventory$).$a$)$ In January, AJ rented a small business office about $12$ miles from Jims home. AJ paid $$10,000,$ which represented a damage deposit of $$4,000$ and rent for two years $($$$3,000$ annually$).$b$)$ AJ earned and collected $$290,000$ performing archeologist$-$related services and selling its specialized digging tool.c$)$ AJ received $$50$ interest from municipal bonds and $$2,100$ interest from other investments.d$)$ AJ purchased some new equipment in February for $$42,500.$ It claimed depreciation on these assets during the year in the amount of $$6,540.$e$)$ AJ paid $$7,000$ to buy luxury season tickets for Jims parents for State University football games.f$)$ AJ paid Jims father $$10,000$ for services that would have cost no more than $$6,000$ if Jim had hired any other local business to perform the services. While Jim's dad was competent, he does not command such a premium from his other clients.g$)$ In an attempt to get his name and new business recognized, AJ paid $$15,000$ in radio ads to be run through the end of December.h$)$ AJ leased additional office space in a building downtown. AJ paid rent of $$27,000$ for the year.i$)$ In November, Jims office was broken into, and equipment valued at $$5,000$ was stolen. The tax basis of the equipment was $$5,500.$ Jim received $$2,000$ of insurance proceeds from the theft.j$)$ AJ incurred a $$4,000$ fine from the state government for digging in an unauthorized digging zone.k$)$ AJ contributed $$3,000$ to lobbyists for their help in persuading the state government to authorize certain unauthorized digging zones.l$)$ On July $1,$ AJ paid $$1,800$ for an $18-$month insurance policy for its business equipment. The policy covers the period July $1$ of this year through December $31$ of next year.m$)$ AJ borrowed $$20,000$ to help with the companys initial funding needs. AJ used $$2,000$ of funds to invest in municipal bonds. At the end of the year, AJ paid the $$1,200$ of interest expense that accrued on the loan during the year.n$)$ Jim lives $12$ miles from the office. He carefully tracked his mileage and drove his truck $6,280$ miles between the office and his home. He also drove an additional $7,200$ miles traveling between the office and client sites. Jim 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 client site, Jim received a $$150$ speeding ticket. AJ reimbursed Jim for business mileage and for the speeding ticket.o$)$ AJ purchased two season tickets $(20$ games$)$ to attend State University baseball games for a total of $$1,100.$ Jim took existing and prospective clients to the games to maintain contact and find further work. This was very successful for Jim as AJ gained many new projects through substantial discussions with the clients following the games.p$)$ AJ paid $$3,500$ for meals when sales employees met with prospective clients.q$)$ AJ had a client who needed Jim to perform work in Florida. Because Jim had never been to Florida before, he booked an extra day and night for sightseeing. Jim spent $$400$ for airfare and booked a hotel for three nights $($$$120/$night$).($Jim stayed two days for business purposes and one day for personal purposes.$)$ He also rented a car for $$45$ per day. The client provided Jims meals while Jim was doing business, but AJ paid all expenses.r$)$ AJ paid a total of $$10,000$ of wages to employees during the year, and cost of goods sold was $$15,000.$