Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you take this same question you have answered before and put in a 2018 Corporate Tax Return???On May 1, 1989, Brendan McLeod and Duncan

Can you take this same question you have answered before and put in a 2018 Corporate Tax Return???On May 1, 1989, Brendan McLeod and Duncan Ryan formed Angler Corporation to sell fishing tackle. Pertinent information regarding Angler is summarized as follows: The business address is 3027 Woodland Ridge Blvd., Baton Rouge, Louisiana 70816. The employer identification number is 75-3392543; the principal business activity code is 451110. Brendan and Duncan each own one-half of the outstanding common stock; no other class of stock is authorized. Brendan is president of the company, and Duncan is secretary-treasurer. Both are full-time employees of the corporation, and each receives a salary of $140,000. Brendans Social Security number is 145-26-2593. Duncans Social Security number is 287-43-4945. The corporation uses the accrual method of accounting and reports on a calendar basis. Inventories are determined by using the lower of cost or market method. For book and tax purposes, the straight-line method of depreciation is used. During 2017, the corporation distributed a cash dividend of $80,000. Selected portions of Anglers profit and loss statement of 2017 reflect the following debits and credits: Account Debit Credit Gross sales $2,190,000 Sales returns and allowances $80,000 Cost of goods sold 950,000 Dividends received from stock investments in less than 20% owned U.S. corporations 120,000 Interest income State bonds $14,000 Certificates of deposit 10,000 24,000 Premiums on term life insurance policies on the lives of Brendan and Duncan; Angler Corporation is the designated beneficiary 11,000 Salaries-officers 280,000 Salaries-clerical and sales 290,000 Taxes (state, local, and payroll) 39,000 Repairs 29,000 Interest expense 18,000 Fines for dumping toxic waste 9,000 Advertising 6,000 Rental Expense 38,000 Depreciation 40,000 A comparative balance sheet for Angler Corporation reveals the following information: Assets January 1, 2017 December 31, 2017 Cash $480,000 $334,100 Trade notes and accounts receivable 808,200 1,060,600 Inventories 600,000 736,000 Certificates of Deposit 130,000 130,000 State bonds 170,000 170,000 Prepaid Federal tax --- 2,800 Buildings and other depreciable assets 240,000 240,000 Accumulated depreciation (88,800) (128,800) Land 20,000 20,000 Other assets 3,600 1,000 Total assets $2,363,000 $2,565,700 Liabilities and Equity Accounts payable $340,000 $273,000 Other current liabilities 57,860 41,000 Mortgages 220,000 200,000 Capital stock 500,000 500,000 Retained earnings 1,245,140 1,551,700 Total liabilities and equity $2,363,000 $2,565,700 Net income per books (before any income tax accrual) $544,000 Income Tax Expense 157,440 Net Income $386,560 During 2017, Angler Corporation made estimated tax payments of $160,240 to the IRS. Prepare a Form 1120 for Angler Corporation for tax year 2016. Include Forms 1125-A, 1125-E and Schedule G (Form 1120).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Automotive Process Audits Preparations And Tools Practical Quality Of The Future

Authors: D. H. Stamatis

1st Edition

036775939X, 978-0367759391

More Books

Students also viewed these Accounting questions

Question

Determine miller indices of plane X z 2/3 90% a/3

Answered: 1 week ago

Question

Have I incorporated my research into my outline effectively?

Answered: 1 week ago