Assume that you have set up an Emirati corporation that does business in many countries, including in the USA. Your company is set up as a large US C-corporation and your company is required to submit Form 1120 to report corporate income. and Schedule C to report dividend income from other companies that your corporation owns.

Your company is in the manufacturing. The cost of goods sold is calculated by adding the beginning of period inventory to the inventory purchases and subtracting the end of period inventory. Fill in Form 1125-A to calculate cost of goods sold. Any other items in Form 1125-A can be left blank.

For dividends, your company only has one source of dividend incomefrom a domestic corporation in which your company has a 30% ownership share. You can calculate the amount of dividend received deduction on Schedule C.

You must fill out both Schedule C and Form 1125-A, before completing Form 1120.

For form 1120 and all other forms, if nothing is listed, assume the number is zero. Hence, you do not have to fill out Schedules K, L, M-1, M-2 or any other supporting schedules, forms, and documents.

For the name of your corporation, list your name and the names of the classmates in your group, if you are filing one return for the group. You have the option of one or two people per group. The fillable tax forms are on Blackboard.

Specific numbers for your group are on the next page. All numbers are in US dollars. Numbers are not listed in any specific order except they are identified as either income or costs.

Fill out Schedule C, Form 1125-A and Form 1120 (pages 1, 2, and 3).

Determine either the amount of refund you receive or what you owe the US government on April 15, 2019.

2018 data for your corporation (Data set D)

Date incorporated January 1, 2007

Employer identification number 2007-07573

Beginning of period inventory $6,000,000

Purchases of inventory $14,300,000

End of period inventory $2,900,000

Gross sales $33,800,000

Returns and allowances $800,000

Other Income:

Royalties $130,000

Dividends received $340,000

Costs:

Repairs $150,000

Advertising $500,000

Bad debts $35,000

Employee benefits $800,000

Salary and wages to company employees $3,600,000

Compensation of corporate officers $1,950,000

Interest paid on bonds $64,365

Charitable contributions $44,778

Rent paid $265,800

Estimated total tax paid in 4 installments of $500,000 to US government during 2018, so taxes paid = $2,000,000.