Mr. and Mrs. Palio celebrated the birth of their third child on November 18. Required: Compute the effect of this event on their tax liability, assuming that their AGI was $101,400, and their taxable income before considering the new dependent was $82,200. Compute the effect of this event on their tax liability, assuming that their AGI was $424,000, and their taxable income before considering the new dependent was $357,000. Compute the effect of this event on their tax liability, assuming that their AGI was $842,000, and their taxable income before considering the new dependent was $726,000. Assume the taxable year is 2020.

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy.year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.