d. Complete XYZX Form 1120, page 1 Input all the values as positive numbers. Use 2021 tax rules regardless of year on tax form) 1120 PG 1 1120 Page 1 Form 1120 Decem U.S. Corporation Income Tax Return OT- 2020 A DO Com TYPE OR PRINT C - CA role Dec. Income who gramom . Congresion of the commuter-Fame 15 2 Deduction Dofumor Instruction on formation 2 on Pion ... deduction) bergam www A a. 34 end Tax Muntats Credits, and Payments 35 . com lefom 20 Anthem Othere, and Dades w ciemnych de todo Decor Sign Here Paid Preparer Use Only C THIS FORWA UMULATION OF AN OFFICIAL. TAK FORNIT IS NOT THE OFFICIE. FOR ITSELE DO NOT USE THE FORM FOR TAK FUNGSOR POR ANY PURPOSE OTHER HAR EDUCATIONAL 1. XYZ owns 30% of the outstanding Hobble Corporation (HC) stock. Hobble Corporation reported $1,000,000 of income for the year. XYZ accounted for its investment in HC under the equity method, and it recorded its pro rata share of HC's earnings for the year. HC also distributed a $200,000 dividend to XYZ. For tax purposes, HC reports the actual dividend received as income, not the pro rata share of HC's earnings. 2. Of the $20,000 interest income, $5,000 was from a City of Seattle bond, $7,000 was from a Tacoma City bond, $6,000 was from a fully taxable corporate bond, and the remaining $2,000 was from a money market account 3. This gain is from equipment that XYZ purchased in February and sold in December (i.e., it does not qualify as $1231 gain) 4. This includes total officer compensation of $2,500,000 (no one officer received more than $1,000,000 compensation) 5. This amount is the portion of incentive stock option compensation that was expensed during the year (recipients are officers). 6. XYZ actually wrote off $27,000 of its accounts receivable as uncollectible. 7. Tax depreciation was $1,900,000. 8. In the current year, XYZ did not make any actual payments on warranties it provided to customers. 9. XYZ made $500,000 of cash contributions to qualified charities during the year. The donations are qualified charitable contributions for purposes of determining the charitable contribution limitation. 10. On July 1 of this year XYZ acquired the assets of another business. In the process, it acquired $300,000 of goodwill . At the end of the year, XYZ wrote off $30,000 of the goodwill as impaired. 11. XYZ expensed all of its organizational expenditures for book purposes. XYZ expensed the maximum amount of organizational expenditures allowed for tax purposes. 12. The other expenses do not contain any items with book-tax differences. 13. This is an estimated tax provision (federal tax expense) for the year. Assume that XYZ is not subject to state income taxes. Estimated tax information: XYZ made four equal estimated tax payments totaling $360,000 ($90,000 per quarter). For purposes of estimated tax liabilities, assume XYZ was in existence in 2020 and that in 2020 it reported a tax liability of $500,000. During 2021, XYZ determined its taxable income at the end of each of the four quarters as follows
