Question
Huge Corporation reports the following ledger balances for its balance sheet accounts for the current year: Beginning of Year End of Year Cash 40,000 70,000
Huge Corporation reports the following ledger balances for its balance sheet accounts for the current year:
Beginning of Year | End of Year | |
Cash | 40,000 | 70,000 |
Accounts Receivable | 23,000 | 21,500 |
Inventories | 26,000 | 53,500 |
Marketable Securities | 30,000 | 30,000 |
Investment in 100%-owned subsidiary | 100,000 | 115,000 |
Depreciable Assets | 100,000 | 100,000 |
Less: Accumulated depreciation | (20,000) | (30,000) |
Total Assets | 299,000 | 359,500 |
Accounts Payable | 50,000 | 80,000 |
Short-term Loans payable | 20,000 | 35,000 |
Mortgage payable | 80,000 | 79,000 |
Common Stock | 1,000 | 1,000 |
Additional paid-in capital | 49,000 | 49,000 |
Retained Earnings | 99,000 | 115,500 |
Total Liabilities & SH Equity | 299,000 | 359,500 |
Huge reports the following account balances for its income and expenses for the current year:
Sales | 720,000 |
Purchases | 570,000 |
Dividend from 100%-owned subsidiary | 30,000 |
Dividend from less-than-20% owned subsidiary | 10,000 |
Salaries (including officer salaries of 30,000) | 90,000 |
Repairs | 12,000 |
Contributions to charity | 60,000 |
State and local taxes | 7,500 |
Interest expense | 11,000 |
Financial accounting depreciation | 10,000 |
MACRS depreciation | 17,490 |
Federal Income tax expense per books | 10,000 |
In addition, Huge reported an NOL carryover of 12,000 from the preceding year and paid current year estimated taxes of 10,000.
Prepare a current year Form 1120 and 1125-A for Huge. Leave spaces blank if the information is not provided.
From 1120 https://www.irs.gov/pub/irs-pdf/f1120.pdf
From 1124-A https://www.irs.gov/pub/irs-access/f1125a_accessible.pdf
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started