Form $1120-$ Deductions

Tulinsky Corp., is a calendar$-$year accrual$-$basis corporation that commenced operations on November $1,$ Year $4.$ The following adjusted accounts appear on Tulinsky's records for the year ended December $31,$ Year $5.$ Tulinsky is not subject to the uniform capitalization rules.

COSTS AND EXPENSES

Cost of goods sold $$4,350,000$

Salaries and wages $1,220,000$

Depreciation:

Real property $50,000$

Personal property $100,000$

Bad debt$120,000$

State franchise tax $25,000$

Vacation expense $10,000$

Interest expense$216,000$

Employee health insurance coverage $19,000$

Organizational costs$350,000$

Donated property$4$

Federal income taxes $200,000$

Other expenses$529,000$

$1$ Bad Debt: Represents the increase in the allowance for doubtful accounts based on an aging of accounts receivable. Actual bad debts written off were $$8,000.$

$2$ Interest expenses on:

Mortgage loan: $$12,000$

Loan obtained to purchase municipal bonds: $$1,000$

Line of credit loan: $$3,000$

$3$ Organizational costs of $$50,000$ were spent in Year $4.$ Tulinsky made the election to deduct these costs.

$4$ Tulinsky donated a parcel of unimproved land to a qualified charity. The property was acquired in Year $1$ at a cost of $$15,000$ and at the time of the donation had an FMV of $$250,000.$

$5$ Start$-$up costs of $$60,000$ were spent in Year $4.$ Tulinsky began operation on November $1,$ Year $4.$ The company made the election to deduct the start$-$up costs.

An abbreviated deduction section for Form $1120$ is provided below for the Tulinsky Corporation. The total income for Tulinsky Corporation is $$2,600,000.$ Fill in the appropriate dollar amounts $($i$.$e$.,$ no cents are recorded$)$ for each of the indicated cells appearing in the form. If the value of a cell is zero, you must enter a zero $("0")$ to receive credit for your answer.

Form $1120$ U$.$S$.$ Corporation Income Tax Return

Deductions $13$ Salaries and wages $($less employment credits$)13$

$14$ Repairs and maintenance $14$

$15$ Bad debts $15$

$16$ Rents $16$

$17$ Taxes and licenses $17$

$18$ Interest $18$

$19$ Charitable contributions $19$

$20$ Depreciation from Form $4562$ and not on Schedule A or elsewhere $20$

$21$ Depletion $21$

$22$ Advertising $22$

$23$ Pension, profit$-$sharing, etc. plans $23$

$24$ Employee benefit programs $24$

$26$ Other deductions $26$

$27$ Total deductions $27$