Create a corporate tax return

Tammy Adams and Fernando Hernandez each own 50% of Custom Designs, Inc. (CDI). On May 6, 2004, they formed CDI to provide architectural services. CDI's information is summarized as follows: CDI's business address is 2120 Adobe Drive, Las Cruces, NM 88011; its employer identification number is 11- 1111111, and the principal business activity code is 541310. CDI's financial statement for 2021 is show below: Income Professional fees Long-term capital gain Short-term capital gain Long-term capital loss 6,000 Dividends distributed from Gary Inc. (CDI ownership in Gary is 17 %) 20,000 Interest income State bonds $18,000 Corporate bonds 24,000 Life insurance proceeds on the death of a key employee Total income Expenses Salaries-officers Tammy Adams: Fernando Hernandez: 190,000 Salaries -clerical Taxes (state, local, and payroll) Advertising Rental expenses Repairs and maintenance 190,000 Interest expenses: On loan to purchase state bonds On corporate bonds 380,000 61,000 55,620 17,650 9,270 16,340 10,500 25,000 Depreciation* (depreciation for tax purpose is $42,000) 35,000 Business Meals 9,800 Total expenses Net income before taxes Tax Income after tax 739,000 5,000 8,000 620,180 687,820 144,442 543,378 42,000 500,000 1,308,000 During 2021, CDI made estimated tax payment of $10,000 each quarter to the IRS. Prepare a Form 1120 page 1 and schedule M-1 on page 6 for CDI for tax year 2021 (Check your figure: Taxable income: $168220) Also: report dividend income of $20000 on line 4 and do not forget report DRD of $10000 on line 29b Tammy Adams and Fernando Hernandez each own 50% of Custom Designs, Inc. (CDI). On May 6, 2004, they formed CDI to provide architectural services. CDI's information is summarized as follows: CDI's business address is 2120 Adobe Drive, Las Cruces, NM 88011; its employer identification number is 11- 1111111, and the principal business activity code is 541310. CDI's financial statement for 2021 is show below: Income Professional fees Long-term capital gain Short-term capital gain Long-term capital loss 6,000 Dividends distributed from Gary Inc. (CDI ownership in Gary is 17 %) 20,000 Interest income State bonds $18,000 Corporate bonds 24,000 Life insurance proceeds on the death of a key employee Total income Expenses Salaries-officers Tammy Adams: Fernando Hernandez: 190,000 Salaries -clerical Taxes (state, local, and payroll) Advertising Rental expenses Repairs and maintenance 190,000 Interest expenses: On loan to purchase state bonds On corporate bonds 380,000 61,000 55,620 17,650 9,270 16,340 10,500 25,000 Depreciation* (depreciation for tax purpose is $42,000) 35,000 Business Meals 9,800 Total expenses Net income before taxes Tax Income after tax 739,000 5,000 8,000 620,180 687,820 144,442 543,378 42,000 500,000 1,308,000 During 2021, CDI made estimated tax payment of $10,000 each quarter to the IRS. Prepare a Form 1120 page 1 and schedule M-1 on page 6 for CDI for tax year 2021 (Check your figure: Taxable income: $168220) Also: report dividend income of $20000 on line 4 and do not forget report DRD of $10000 on line 29b