I:16-65 Huge Corporation reports the following balance sheet for the current year (2021):

Beginning of Year End of Year Cash $ 40,000 $ 70,000 Accounts receivable 23,000 21,500 Inventories 26,000 53,000 Marketable securities 30,000 30,000 Investment in 100%-owned subsidiary 100,000 115,000 Depreciable assets 100,000 100,000 Less: Accumulated depreciation (20,000) (30,000)

Total assets $299,000 $359,500 Accounts payable $ 50,000 $ 80,000 Short-term loans payable 20,000 35,000 Mortgage payable 80,000 79,000 Common stock 1,000 1,000 Additional paid-in capital 49,000 49,000 Retained earnings 99,000 115,500 Total liabilities and stockholders’ equity $299,000 $359,500 Huge reports the following income and expenses for the year:

Sales $720,000 Purchases 570,000 Dividend from 100%-owned subsidiary 30,000 Dividend from less-than-20%-owned corporation 10,000 Salaries (including officers’ salaries of $30,000) 90,000 Repairs 12,000 Contributions 60,000 State and local taxes 7,500 Interest expense 11,000 Financial accounting depreciation 10,000 MACRS depreciation 17,490 Federal income tax expense per books 10,000 In addition, Huge reported an NOL carryover of $12,000 from the preceding year and paid current year estimated taxes of $10,000. Huge files its tax return separately (i.e., it does not consolidate its subsidiary).

Prepare a current year Form 1120 (U.S. Corporation Income Tax Return) for Huge.

Leave spaces blank on Form 1120 for information not provided. Note: You should prepare a schedule of net income per books to complete Line 1 of Schedule M-1.