Capital Gains and Losses:

The corporation sold 100 shares of Shield Corp. common stock on October 7, 2017 for $150,000. The corporation acquired the stock on December 15, 2016 for $100,000. The corporation also sold 75 shares of Metro Corp common stock on June 17, 2017 for $120,000. The corporation acquired this stock on September 18, 2015 for $135,000. The corporation has a $20,000 capital loss carryover from 2016. These transactions were not reported to the corporation on Form 1099-B.

Fixed Assets and Depreciation:

Book: The corporation uses straight-line deprecation over the useful lives of the assets as follows: store building, 50 years; equipment, ten years; and trucks, five years. The corporation takes a halfyears depreciation in the year of acquisition and the year of disposition and assumes no salvage value. The book financial statements reflect these calculations.

Tax: All assets are MACRS property as follows: store building, 39-year non-residential real property; equipment, seven-year property; and trucks, five-year property. The corporation acquired the store building for $2 million and placed it in services on January 2, 2014. The corporation acquired two pieces of equipment for $400,000 (Equipment 1) and $800,00 (Equipment 2) and placed them in service on January 2, 2014. The corporation acquired the trucks for $200,000 and placed them in service on July 18, 2015. The trucks are not listed property and are no subject to the limitation on luxury automobiles. The corporation did not make the expensing election under Sec. 179 or take bonus depreciation on any property acquired before 2017. Accumulated depreciation through December 31, 2016 on the properties is as follows:

Store building $151,780

Equipment 1 225,080

Equipment 2d 450,160

Trucks 104,000

On October 16, 2017 the corporation sold Equipment 1 for $440,000. The corporation had no Sec. 1231 losses from prior years. In separate transaction on October 17, 2017 the corporation acquired and placed in service a piece of equipment costing $1.5 million. Assume these transactions do not qualify as like-kind exchange. The new equipment is seven-year property. The corporation made the Sec. 179 expensing election regarding the new equipment but elected out of bonus depreciation.

The balance sheet is follows:

January 1, 2017 December 31, 2017

Cash $ 216,673 $ 328,673

Accounts Receivable 380,000 475,000

Allowance for doubtful accounts $ <19,000> <$ 23,750 > - these are credits

Inventory 2,375,000 3,325,000

Investment in corporate stock 285,000 50,000

Investment in municpal bonds 60,000 60,000

Cash surrender value of insurance policy 80,000 100,000

Land 400,000 400,000

Buildings 2,000,000 2,000,000

Accumulated Depreciation - Buildings 100,000 140,000 - these are credits

Equipment 1,200,000 2,300,000

Accumulated Depreciation - Equipment 300,000 355,000 - these are credits

Trucks 200,000 200,000

Accumulated Deprecation - Trucks 60,000 100,000 - these are credits

Accounts payable 400,000 360,000 - these are credits

Notes payable (short-term) 900,000 720,000 - these are credits

Accrued payroll taxes 14,136 17,670 - these are credits

Accrued state income taxes 4,275 7,125 - these are credits

Accrued federal income taxes 2,375 122,304 - these are credits

Bonds payble (long-term) 2,400,000 2,200,000 - these are credits

Net deferred tax liability 146,887 276,247- these are credits

Capital stock - common 950,000 950,000 - these are credits

Retained earnings - unappropriated 1,900,000 3,966,577 - these are credits

Total $ 7,196,673 $ 9,238,673

I need help filling out a schedule D and Form 4797