Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I am working onmy homework, Tax form 1120. My teacher gave me the problem (Please see the attached file), but I have been struggling to
I am working onmy homework, Tax form 1120.
My teacher gave me the problem (Please see the attached file), but I have been struggling to solve (fill out the form) the problem.
Could you help me to solve this problems?
ACNT 1347 Form 1120 Practice Tax Return Facts in 2015: ABC Inc. 123 Oak Dr Houston TX 77002 EIN-74-111111 Date Incorporated 1/1/2000 Total Assets $5,000,000 ABC Inc.'s Net Income per books is $440,000 Gross Receipts $1,000,000 Cost of Goods Sold $400,000 (assume no beginning and ending inventory and purchases are $400,000) ABC Inc. uses the lower of cost or market method for valuing inventory and also uses the FIFO method for determining the cost of goods sold. Cash method of accounting is used for all other expenses other than inventory. Business Activity Code is 99999 and business activity is retail sales of clothing. Compensation paid to sole shareholder, John Doe. SSN-222-22-2222 was $200,000 Salaries and wages paid to employees were $50,000 Office Rent paid for corporate headquarters was $10,000 ABC Inc. contributed a computer used in its business since 1/1/2008 with a basis of $20,000 and a fair market value of $60,000 to the Salvation Army to be used in their business office. Television advertising to promote the company products were $40,000 ABC Inc. elected to carry over $1,250 of overpaid taxes from 2014 to 2015 ABC Inc. paid $20,000 each of 4 quarters for estimated tax payments in 2015 ABC Inc. owns 10% of Better Inc., a domestic corporation, and received dividends in the amount of $100,000 in 2015 ABC Inc. owns 40% of Best Inc., a domestic corporation, and received dividends in the amount of $100,000 in 2015 ABC Inc. is a calendar year taxpayer and not affiliated with any other entity. John Doe has engaged you to prepare the 2015 Form 1120 (pages 1, 2, 3 and Page 5 (M1 only) for the ABC Inc. You will not be preparing Form 1125-A, Cost of Goods Sold; Form 1125-E, Compensation of Officers; or Form 1120 Schedule G, Information on Certain Persons Owning the Corporation's Voting Stock . Disregard any estimated tax penalties. Be sure to sign the return as the preparer. Do not put your SSN # on the Form 1120Step 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