Due November 20th

John Payne and Richad Rogers are filing the tax return for GAS MONKEE. They have asked you to prepare the tax return for the corporation based on the following information. The address of GAS MONKEE is as follows: 1 Gas Monkee Ave., Dallas, TX 07810. Their EIN is 00-0000001. They do not know their principal business activity code.

Ownership percentage is based on the fact scenario in the Memo. John is President and Richard is vice-president. There is only one authorized class of common stock.

Both John and Richard are employees as well. John's social security number is 111-11-1111 and Richard's is 111-11-1112.

GAS MONKEE is an accural method, calendar year taxpayer. Inventories are determined under the FIFO or lower of cost or market method. Gas Monkee uses the straight-line method of depreciation for book and accelerated depreciation for tax purposes.

During 2018, the corporation distributed cash dividends of $20,000.00

Gas Monkee's Financials are listed below;

During 2018, Gas Monkee made estimated payments of $10,500.00 for the entire year. Prepare a form 1120 for Gas Monkee for 2018.

Income Statement Income-Sales and Services 3,250,000.00 Sales Returns and Allowances 250,000.00 Net Sales 3,000,000.00 Cost of Goods Sold 1,730.000.00 Gross Profit 1,270,000.00 Dividends received from stock investments in less than 20% owned US Corporations 23,500 Interest Income State Bonds 15,000 CD's 20,000 Total Income $1,328,500 Expenses Salaries-Officers John Payne $125,000 Richard Rogers $ 75.000 Other Salaries $375,000.00 Taxes-State, local and Payroll $108,000.00 Repairs and Maintenance $65,000.00 Interest Expense $18,000.00 Advertising $35,000.00 $45,000.00-there is not enough info to Depreciation prepare Form 4562. Charitable Contributions $6.500.00 Emplyee Benefit Programs $43,000.00 Premiums on term life insurance on John and Richard $3,500.00 Total Expenses $899,000.00 Net Income Before Taxes $429,500.00 DACTIC CCL Assets 2018 January 1, December 31, 2018 380,000 Cash 435.000 Accounts Receivable 38,400 48,280 Inventories 325,000 376,000 Certificates of Deposit 110,000 110,000 Stock Investment 100,000 100,000 Building and other Assets 125,000 125,000 Accumulated Depreciation (90,000) (45,000) Land 200,000 200,000 Other Assets 35,000 35,000 Total Assets 1,268,400 1,339,280 Liabilities and Equity Accounts Payable 300,000 299,104 Other Current Liabilities 43,000 35.000 Mortgages 210.000 200.000 Capital Stock 300.000 300,000 Retained Earnings 423,400 497,176 Total Liabilites and Equity 1,268,400 1,339.280 Income Statement Income-Sales and Services 3,250,000.00 Sales Returns and Allowances 250,000.00 Net Sales 3,000,000.00 Cost of Goods Sold 1,730.000.00 Gross Profit 1,270,000.00 Dividends received from stock investments in less than 20% owned US Corporations 23,500 Interest Income State Bonds 15,000 CD's 20,000 Total Income $1,328,500 Expenses Salaries-Officers John Payne $125,000 Richard Rogers $ 75.000 Other Salaries $375,000.00 Taxes-State, local and Payroll $108,000.00 Repairs and Maintenance $65,000.00 Interest Expense $18,000.00 Advertising $35,000.00 $45,000.00-there is not enough info to Depreciation prepare Form 4562. Charitable Contributions $6.500.00 Emplyee Benefit Programs $43,000.00 Premiums on term life insurance on John and Richard $3,500.00 Total Expenses $899,000.00 Net Income Before Taxes $429,500.00 DACTIC CCL Assets 2018 January 1, December 31, 2018 380,000 Cash 435.000 Accounts Receivable 38,400 48,280 Inventories 325,000 376,000 Certificates of Deposit 110,000 110,000 Stock Investment 100,000 100,000 Building and other Assets 125,000 125,000 Accumulated Depreciation (90,000) (45,000) Land 200,000 200,000 Other Assets 35,000 35,000 Total Assets 1,268,400 1,339,280 Liabilities and Equity Accounts Payable 300,000 299,104 Other Current Liabilities 43,000 35.000 Mortgages 210.000 200.000 Capital Stock 300.000 300,000 Retained Earnings 423,400 497,176 Total Liabilites and Equity 1,268,400 1,339.280