Based on the given information (Links to an external site.)Links to an external site. prepare the 2018 Form 1120 for Bizrate Electronics with the accompanying Schedule D, 1125-A, 1125-E, and Form 4797. Also, provide calculations for Jon and Billy's basis in Bizrate's stock and Bizrate basis in the new assets it holds. Depreciation will be a given number.

Bizrate Electronics, Inc. A C Corporation For the Year Ended December 31, 2018 Bizrate Electronics was organized on February 22, 2018, by Jon Jones and Billy Burt. Jon contributed $270,000 cash and SBUX stock (acquired 01/01/2017) worth $30,000 for 60% of Bizrate stock, while Billy contributed $200,000 cash for 40% of the stock. Jons social security number is 123-45-6789 and Billys is 987-65-4321. Bizrates employer ID number is 12-3456789. Bizrate began business on March 1, 2018. Bizrate is a retail electronics outlet located at 118812 Josey Lane, Louisville, KY 40018. Bizrate uses the accrual method of accounting, the first-in, first-out (FIFO) inventory method, and a calendar year. Bizrates 2018 income statement, balance sheet, and statement of changes in retained earnings are on the following pages.. Bizrate Electronics, Inc. Income Statement For the Year Ended December 31, 2018 Sales 4,700,000 Returns and Allowances (50,000) 4,650,000 Beginning Inventory 0 Purchases 4,050,000 4,050,000 Ending Inventory (1,700,000) (2,350,000) Gross Profit 2,300,000 Expenses Salaries (a) 980,000 Depreciation (b) 75,400 Advertising 30,000 Bad Debts 39,000 Rent 100,000 Interest (c) 39,500 Utilities 38,300 Delivery Expense 34,900 Office Supplies 46,200 Repairs and Maintenance 29,000 Organization Expense (d) 6,000 Meals and Entertainment 80,000 Insurance Expense (e) 36,000 Payroll Taxes 113,300 2018 Federal Income Tax Deposits 250,000 Other Taxes 20,000 Fines and Penalties (Traffic) 1,000 Accounting and Legal 12,000 Charitable Contributions Red Cross 18,000 Real Estate Taxes on Investment Land 800 1,949,400 350,600 Other Income Gain on Sale of Stock (f) 4,000 Sale of Delivery Truck (g) 8,600 Interest on County Tax Exempt Bonds 1,100 Interest on CDs 11,500 Dividends from US Corporations (h) 5,600 30,800 Net Income 381,400 Bizrate Electronics, Inc. Notes to Income Statement a. Includes salaries: Jon Jones $200,000, Billy Burt $50,000. b. Depreciation for tax purposes $112,700. c. $2,500 is allocable to the investments in stock. The remainder is related to Bizrates business. d. $6,000 in fees were incurred in organizing Bizrate. e. Includes $5,000 of premiums for term life insurance on Jon and Billy. Bizrate is the beneficiary of these policies. In addition, $4,300 of the health insurance premiums are attributable to coverage for Jon and his family, and $3,900 are attributable to coverage for Billy and his family. f. Sold 500 shares of SBUX stock for $35,000 on December 1, 2018. The stock had been purchased by Jon on July 1, 2004 for $20,000 and was contributed by him on February 22, 2018, when it was worth $30,000. Also, on December 1, 2018 sold 100 shares of Grand View, Inc. for $2,000. The stock had been purchased on March 1, 2018 for $3,000. At no time did Bizrate own more than 1% of the outstanding stock of these corporations. g. Sold a delivery truck on September 23, 2018 for $35,000. The Truck had originally been purchased on May 1, 2018 for $33,400. Depreciation taken for book purposes was $7,000. Depreciation taken for tax purposes was $9,350. h. Bizrate owns less than 20% of the outstanding stock of each of these corporations. Bizrate Electronics, Inc. Balance Sheet December 31, 2018 Assets Cash 113,000 Accounts Receivable 300,000 Less Allowance for Bad Debts 29,000 271,000 Inventory 1,700,000 Tax Exempt Securities 17,000 Other Current Assets 40,000 Other Investments 85,000 Buildings and Depreciable Assets (net) 165,400 Land 70,000 Total Assets 2,461,400 Liabilities and Equity Accounts Payable 375,000 Mortgages, Notes Payable in < 1 year 185,000 Other Current Liabilities 70,000 Mortgages, Notes Payable in > 1 year 1,190,000 Capital Stock 500,000 Retained Earnings 141,400 Total Liabilities and Equity 2,461,400 Bizrate Electronics, Inc. Statement of Changes in Retained Earnings For the Year Ended December 31, 2018 Beginning Balance 0 Income 381,400 Distributions (240,000) Balance, December 31, 2018 141,400 Other Information Addresses for the owners are: Jon Jones, 3513 Jackson Street, Louisville, KY 40018 Billy Burt, 2532 Sugarbush, Louisville, KY 40018