Create an Excel spreadsheet using the info that follows to compute the taxpayers [a] book income, [b] taxable income, and [c] book/tax differences.

Using the Excel spreadsheet completed above, prepare a 2019 Form 1120 [p.1 through line 37] and Schedule M-1 [p.6].

Taxpayer Information:

Acme, Inc. is an accrual-basis, calendar-year wholesaler.

• Acme was incorporated on January 4, 2018.
• Acmes employer identification number is 31-1584392.
• Acmes main office is located at 51515 Sycamore Street, DeKalb, IL 60115.
• Acme has total assets as of December 31, 2019 of $3,670,900.

• Acmes receipts for book purposes include:
  • Sales totaled $2,998,000 for the year. Returns and allowances of $82,000 were subsequently granted to customers who received product that was damaged.
  • $20,700 of interest income was received during the year. Of this total, $5,800 was earned on City of DeKalb bonds.
  • $32,000 of prepaid rent was received in late December 2019 from a company that will lease excess space in its largest warehouse from February 1 through October 31, 2020.
• Acmes expenses for book purposes are as follows:
  • Cost of Goods Sold $1,132,700
  • Salaries (including Officers Compensation of $180,000) 690,000
  • Federal income tax 167,800
  • Depreciation 118,400
  • State & Local Taxes 43,500
  • Interest Expense 7,000
  • Repairs 12,000
  • Rent 37,200
  • Advertising 25,000
  • Bad debts 30,800
  • Property/Casualty Insurance Premiums 12,000
  • Business Meals 13,400

• Depreciation for tax purposes is $197,700.
• Acme wrote off $38,400 of accounts receivable as uncollectible this year.
• During its first tax year, Acme generated a $67,000 net operating loss.

• Acme made the following estimated income tax payments to the IRS for 2019:
  • Overpayment in 2018, credited to 2019 $43,000
  • 2^nd quarter 35,000
  • 3^rd quarter 35,000
  • 4^th quarter 35,000

• Acme does not qualify for any other tax credits in 2019.

Any overpayment of 2019 tax should be credited to its 2020 estimated