Required Information Comprehensive Problem 22-86 (Algo) (LO 22-1, LO 22-2, LO 22-3. LO 22-4, LO 22-5, LO 22-6) While Jomes Craig and his former clossmate Poul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their compony, Good to Eat (GTE), specializes in custom-sculpted cakes for weddings, birthdays, and other celebrations. James and Poul formed the business at the beginning of 2022, and eoch contributed $230,000 in exchange for a 50 percent ownership interest. GTE also borrowed $920,000 from a local bonk. Both James and Poul had to personally guarantee the loon. Both owners provide significant services for the business. The following informotion pertains to GTE's 2022 activities: - GTE uses the cosh method of accounting (for both book and tox purposes) and reports income on a calendar-year bosis. - GTE received $1,350,000 of sales revenue and reported $630,000 of cost of goods sold (it did not have any ending inventory). - GTE poid $120,000 compensation to James, $120,000 compensation to Poul, and $130,000 of compensation to other employees (ossume these amounts include applicable poyroll toxes, if any). - GTE poid $33,000 of rent for o building and equipment, $38,000 for advertising. $64,400 in interest expense, $5,800 for utilities, and $3,800 for supplies. - GTE contributed $14,000 to charity. - GTE received a $4,600 qualified dividend from a great stock investment (it owned 2 percent of the corporation distributing the dividend), ond it recognized $3,300 in short-term copitol goin when it sold some of the stock. - On December 1, 2022, GTE distributed $38,000 to James and $38,000 to Poul. - GTE hos qualified property of $318,000 (unadjusted bosis). Note: Leave no answers blank. Enter zero if applicable. Enter N/A if not applicable. Comprehensive Problem 22-86 (Algo) Part b-3 b.3. Assume James and Poul formed GTE as an LLC. 1. Compute the tox bosis of Poul's ownership interest in GTE at the end of 2022 2 What amount of Poul's income from GTE is subject to FICA or self-employment toxes? 3. What amount of income, including its character, will Paul recognize on the $38,000 distribution he receives on December 1 ? 4. What amount of tox does GTE poy on the $4,600 qualified dividend it received