1. Comprehensive Problem 11-1

   Floyd Corporation was formed and began operations on January 1, 2020. The corporation is located at 210 N. Main St., Pearisburg, VA 24134 and the EIN is 91-1111111. The corporation's income statement for the year and the balance sheet at year-end are presented below.

   The Floyd Corporation Income Statement for the Year Ended December 31, 2020
   Gross income from operations			$320,000
   Qualified dividends received from a 15 percent-owned domestic corporation			20,000
   Total gross income			340,000
   Cost of goods sold			(70,000)
   Total income			270,000
   Other expenses:
   Compensation of officers	$80,000
   Salaries and wages	20,000
   Bad debts (direct charge-offs)	9,000
   Repairs	3,000
   Depreciation for book (tax depreciation = $90,000)	10,000
   Advertising	3,000
   Payroll taxes	15,000
   Total other expenses			(140,000)
   Pretax book income			130,000
   Income tax expense			25,200
   Net income			$104,800
   The Floyd Corporation Balance Sheet as of December 31, 2020
   Assets:
   Cash	$140,600
   Accounts receivable	20,000
   Inventory (at cost)	70,000
   Equipment	90,000
   Less: accumulated depreciation	(10,000)
   Total assets			$310,600
   Liabilities and owners' equity:
   Accounts payable	$ 24,000
   Other liabilities	16,800
   Note payable (due in 10 years)	85,000
   Common stock	80,000
   Retained earnings	104,800
   Total liabilities and owners' equity			$310,600

   The corporation made estimated tax payments of $9,000. Assume any overpayment is credited to the 2021 estimated tax.

   Required: Prepare Form 1120 for Floyd Corporation.

   1. Enter all amounts as positive numbers, except for a "loss". If required, enter a "loss" as a negative number on the tax form.
   2. If an amount box does not require an entry, or the answer is zero, enter "0".

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