To prepare for Project Part 2: Revisit the assigned readings for Modules 4 and 5 fromyour textbook. In addition, revisit the lessons for Module 4 and 5 thatpresent important points that you need to consider beforesubmitting Project Part 2.Title: Tax Planning for Corporate TaxpayersJackson Corporation prepared the following book incomestatement for its year ended December 31, 2013:Sales—————————————Minus: Cost of goods sold———–$950,000(450,000)Gross profit $500,000Plus:Dividends received on InvestCorporation stock———————-Gain on sale of Invest Corporationstock————————————–$3,000$30,000Total dividends and gain $33,000Minus:Depreciation ($7,500 $52,000)—Bad debt expense———————-Other operating expenses———–Loss on sale of Equipment 1——–$59,500$22,000$105,500$70,000Total expenses and loss————– (257,000)Net income per book beforetaxes————————————–$276,000Minus:Federal income tax expense——–(90,000)Net income per book$186,000Information on equipment depreciation and sale:Equipment 1: Acquired March 3, 2011 for $180,000 For books: 12-year life; straight-line depreciation Sold February 17, 2013 for $80,000Sales price $80,000Cost $180,000Minus:Depreciation for 2011 (1⁄2 year)Depreciation for 2012($180,000/12)Depreciation for 2013 (1⁄2 year)$7,500$15,000$7,500Total book depreciation (30,000)Book value at time of sale (150,000)Book loss on sale of Equipment 1 $70,000 For tax: Seven-year Modified Accelerated Cost RecoverySystem (MACRS) property for which the corporation madeno Sec. 179 election in the acquisition year and elected outof bonus depreciation.Equipment 2:• Acquired February 16, 2012 for $624,000• For books: 12-year life; straight-line depreciation• Book depreciation in 2013: $624,000/12 = $52,000• For tax: Seven-year MACRS property for which thecorporation made the Sec. 179 election in 20ation made the Sec. 179 election in 2012 but electedout of bonus depreciation.Other information: Under the direct write-off method, Jackson deducts $15,000of bad debts for tax purposes. Jackson has a $40,000 Net Operating Loss (NOL) carryoverand a $6,000 capital loss carryover from last year. Jackson purchased the Invest Corporation stock (less than20% owned) on June 21, 2011, for $25,000 and sold thestock on December 23, 2013, for $55,000. Jackson Corporation has a qualified production activitiesincome of $120,000.Tasks:1. For 2013, calculate Jackson’s tax depreciation deduction forEquipment 1 and Equipment 2, and determine the tax losson the sale of Equipment 1.2. For 2013, calculate Jackson’s taxable income and taxliability.Prepare a schedule reconciling net income per book totaxable income before special deductions (Form 1120, line28).Submission Requirements:Submit your answer in a Microsoft Word document, showing stepby-stepsolutions for all calculations. The submission should use: Font: Arial; 12-point Line spacing: Double Citation: APA format