CAN SOMEONE PREPARE A FORM 1120 TAX RETURN WITH THIS INFORMATION??

General Information: Bobs Building, Inc. (hereinafter BB) is a C-Corporation that provides training and supplies to general contractors and other individuals in the building industry. BB began its operations in 2015. The company is wholly owned by George Lopez (SSN 132-54-9876) and for book purposes the company uses the accrual basis, but for tax purposes the company uses the cash basis of accounting. BB is fully compliant in its FICA tax obligations with respect to its employees and George. The federal income taxes paid listed on the income statement below represents the estimated payments made in 2017. BB also has a Net Operating Loss carryforward from 2016 of $19,000.

Bobs Building, Inc. Income Statement

Revenues Sales $5,250,000 Returns ($45,000) Allowance for Doubtful Accounts ($150,000) Net Sales $5,055,000

Cost of Goods Sold Materials ($1,345,000) Production Labor ($143,798) Repairs & Maintenance ($100,000) Cost of Goods Sold ($1,588,798)

Gross Profit $3,466,202

Operating Expenses Marketing and Sales ($187,268) General and Administrative ($258,770) Rent ($360,000) Depreciation ($594,679) Miscellaneous ($30,000) Total Operating Expenses ($1,430,717)

Other Income Gains (Losses) ($8,000) Net Income before Taxes $2,019,485 Taxes ($250,000) Net Income $1,769,485

Income Detail: BB wrote off $100,000 of non-collectible accounts in 2017 from sales that had occurred in 2016. Also, BBs beginning accounts receivable were $245,000 and its ending accounts receivable were $210,000. The companys returns accounts and Cost of Good Sold were maintained in accordance with tax principles. The companys beginning inventory was $850,000 and its ending inventory was $900,000. BB made purchases in the amount of $1,395,000.

For purposes of determining any book depreciation, assume BB takes a full year of depreciation in the first and last year on a straight line basis with no salvage value and uses the same class life for book and tax.

Assets Place into Service in 2015: BB purchased furnishings and other equipment in 2015 for $571,755 that were all 7 year property and the half-year convention applied. BB elected not to take bonus depreciation or 179 deductions on those assets, because its taxable income was negligible in that year. BBs total combined MACRS depreciation from this equipment in 2015 and 2016 was $221,726 and its book depreciation was $163,359. Assets Placed into Service in 2017: BB anticipates increasing its revenues substantially in future years, particularly 5 years from now when a current distribution agreement for its training materials expires. Consequently, BB does not want to take bonus depreciation on any newly acquired assets with class lives longer than 5 years, but bonus depreciation may be taken on any assets with class lives of 5 years or less that qualify. BB purchased and placed into service the following business assets in 2018. BB purchased an inventory management system that consists of computer hardware costing $500,000 (5 year class life) and an order processing machine that cost $2,800,000 (7 year class life for book and tax). These assets were placed into service on March 1st.

Trade-In of Vehicle: BB also traded in its old delivery truck for a new delivery truck (both 5 year class life assets) on November 1st and immediately placed the new truck into service. The new truck cost $35,000, but BB received $10,000 of credit on the trade-in of the old vehicle and paid the remaining $25,000 in cash. The old vehicle was a 5 year asset that was acquired in the first quarter of 2016 and its original basis was $30,000. BB used the mid-quarter convention in 2016 and the total tax depreciation on the old vehicle from prior years was $18,300.

Other Expenses Rent for BBs office, warehouse, and production facility is $30,000 per month paid on the first day of each month. George pays this rent via an automatic monthly charge to a business credit card and the credit card balance is paid off when due 50 days later by check drawn on the companys bank account. BB also incurred the following expenses, all of which were paid for using company checks: (i) Advertising $75,000, (ii) Client Development Meals $5,000, (iv) OSHA Fine $25,000, (v) Liability Insurance $25,000, (vi) Machine Repairs $100,000.

Employee Expenses: BB has 6 full-time employees in addition to George. The company has three warehouse workers that work directly with marketing products and supplying the companys product to its customers. The company also has a team that handles the production of the training materials including a production manager, post production director, and a chief of marketing and sales. George works as the President and CEO and also the primary talent in all of the training materials. George doesnt take a base salary since hes paid out of the profits of the business, but he does receive health insurance. All salaries were paid during the year via direct deposit into the employees bank accounts and the salaries and fringe benefits are listed below for each employee as well as whether the employees income and benefits are allocable to COGS for both tax and book purposes:

Name Position Base Salary Health Ins. FICA Tax (empl.) COGS

1. Betty A. Warehouse - Logistics $50,000 $10,000 $3,825 N

2. Frank K. Warehouse - Purchasing $50,000 $10,000 $3,825 N

3. Bob B. Warehouse - Processing $50,000 $10,000 $3,825 Y

4. Sheila C. Production Mgr. $80,000 $10,000 $6,120 N

5. Samuel W. Post Production $65,000 $10,000 $4,973 Y

6. William Z. Chief of Mkt & Sales $95,000 $10,000 $7,268 N

7. George L. President/CEO/Owner $0 $10,000