I need help determining gross receipts, returns and allowances, interest, net gain and loss, and other income for irs form 1120. answers to any of this would be really helpful. Thank you!

Spring 2019- Advanced Taxation- Corporate Tax Return Special Project Instructions: Prepare a 2018 corporate tax return for Gayle Corporation using the information below. No state returns will be prepared. Tax preparation software should not be used. I) The tax return package should include the following a. Transmittal letter, addressed to Gayle Corporation, that includes relevant information: i. Where/when to send the return ii. How to pay any balance due/receive any refund owed ii High-level summary of the return: key drivers/tax adjustments of amy balance due/refund owed b. ax return i. Form 120+ additional forms as required based on the facts and circumstances (Form 1120 is not the only form that will be required as port of this assignment All relevant forms are available at IRS.gov) Additional statements (prepared by you) that need to be attached to ii. the return based upon the facts and circumstances C. Workpapers you've prepared in support of the calculations included in the tax return. Your workpapers should be submitted in Excel, Word, or PDF ormat 2) This project may be completed individually or in teams of up to 3 3) You will be allowed to send your client one round of follow-up questions (max of five). These questions should be submitted no later than Tuesday, May 21, 2019 at 5pm. You should expect responses to your follow-up questions by Friday, May 24, 2019, at 9am. Follow-up questions should be sent to cgatieuw.edu and written professionally 4) Completed tax returns are due Tuesday, May 28, 2019, at 5pm Gayle Corporation is a calendar year taxpayer that was formed on March 3I 2018 * It was incorporated as a C corporation in the state of Washington * It is an accrual method taxpayer * * Its primary industry is broadcast communications. * Its corporate office is located at 8562 Seaway Boulevard, Seattle, WA 98123 phone number (206) 867-5555 * Gayle Corporation is not part of a consolidated group for U.S. tax purposes, and it is not a personal holding corporation or personal services corporation. * As part of this exercise. Gayle Corporation will need to apply for an Employer Identification Number (EIN) Gayle Corporation's shareholders were as follows at formation l) Monty Gautier, SSN 222-222-3333 Address: 5076 171k Avenue, Seattle, WA 98122. Received 20,000 shares of Gayle Co. common stock in exchange for performing services valued at $20,000 2) Aggie Swenson, SSN 1-2222 Address: 998 Large Avenue, Seattle, WA 98176 Contributed TV equipment (FMV $20,000, adjusted basis $5,000, purchased for $12,000 on February 1, 2016) in exchange for 20,000 shares of Gayle Co common stock. 3) Moss Corporation, EIN 867-530-9555 Address: 223 Avenue Louise, Brussels, Belgium 1004 Contributed a building (FMV $60,000, adjusted basis $20,000, purchased for $30,000 on January I, 2010) in exchange for 51,000 shares of Gayle Co. common stock and a Gayle Co. note of $9,000 4) Carolina McLean, SSN 999-999-8765 Address: 327 Andre Reynolds Drive, Lisbon, Portugal Contributed recording equipment (FMV $9,000 adjusted basis $15,000 purchased for $12,000 on November I, 2017) in exchange for 9,000 shares of Gayle Co. common stock. At formation, total shares issued and outstanding: 100,000 shares of common stock. During 2018, the following events occurred 1) Gayle Corporation received dividends as follows a. June , 2018 - $65,000 from Alphabet Inc, a company in which Gayle Co. owns a 10% interest. b. September I, 2018 - $100,000 from South Seattle Corp., a company in which Gayle Co. owns a 75% interest. 2) Gayle Corporation made distributions as follows: a. June I, 2018- $20,000 cash to Monty Gautier b. July I, 2018 - $20,000 cash to Aggie Swenson C. September 1, 2018-property (FMV $51,000, adjusted basis $20,000 E&P adjusted basis $30,000, historical cost $40,000) to Moss Corporation d. October I, 2018 $9,000 cash to Carolina McLean e. November I, 2018 - property (FMV $30,000, adjusted basis $15,000 E&P adjusted basis $15,000, historical cost $22,000) in complete termination of Aggie Swenson's interest in Gayle Corporation. Aggie Swenson also assumed a $10,000 liability associated with the distributed property 3) Gayle Corporation made estimated tax payments of $100,000 4) Gayle Corporation capitalized the contributed services from Monty Gautier and fully amortized them during the year. Book and tax amortization are equal. 5) Gayle Corporation accrued $250,000 related to accrued compensation. $200,000 was paid to employees by March 15, 2019 6) Gayle Corporation accrued bad debt expense of $75,000 during the year, however only $35,000 of bad debts were actually written off in 2018. 7) Gayle Corporation made $300,000 of qualified charitable contributions. For purposes of this exercise, assume that no special provisions (medical contributions, etc.) related to charitable contributions apply 8) Gayle Corporation purchased and placed in service $150,000 of assets (TV monitors) that it would like to fully expense under IRC Sec. 179 9) Gayle Corporation placed in service the following assets during the year which it would like to depreciate using standard MACRS depreciation a. TV equipment received from shareholder Aggie Swenson b. Building received from shareholder Moss Corporation c. Recording equipment received from shareholder Carolina McLean d. Office equipment (chairs, tables, desks) purchased on June l, 2018 for $10,000 10)On December 3 I, 2018, Gayle Corporation sold the TV equipment received at formation from shareholder Aggie Swenson for $21,000 (E&P basis in the TV equipment was $7,000 at time of sale) ll) On December 31, 2018, Gayle Corporation sold its 10% interest in Alphabet Inc. It sold its interest for $750,000, and it was originally purchased for $1,000,000 (E&P basis in its interest - tax basis) 12) For purposes of this tax return, assume that the only transactions between Moss Corporation and Gayle Corporation are the transactions detailed above, and those payments are not base-erosion payments 13) At the end of the year, Gayle Corporation's balance sheet and income statement were as follows: For the year ended 12/3 1/2018 Income Advertising revenue $2,000,000 $65,000 Dividends- Alphabet Inc. Dividends South Seattle Corp $100,000 Interest income on tax-exempt bonds $15,000 $2,180,000 xpense: $400,000 Salaries and compensation Accrued Vacation/bonus %250,000 Bad debt expense $75,000 Amortization of services $20,000 Depreciation $55,000 Charitable contributions $300,000 Capital loss on sale of Alphabet Inc. Stock $250,000 Other operating expenses $275,000 $100,000 Tax expense accrued $I,725,000 Book Net incom $455,000 Assets 3131/18 12/31/18 Cash $1,000,000 Accounts Receivable $500.000 $40,000 $8,000 Building (net) TV equipment Recording equipment TV monitors $60,000 $20,000 $9,000 $6,000 $100,000 Capitalized services $20,000 Stock in Alphabet Inc. Investment in Subsidiary $200.000 $109,000 $1,654,000 Spring 2019- Advanced Taxation- Corporate Tax Return Special Project Instructions: Prepare a 2018 corporate tax return for Gayle Corporation using the information below. No state returns will be prepared. Tax preparation software should not be used. I) The tax return package should include the following a. Transmittal letter, addressed to Gayle Corporation, that includes relevant information: i. Where/when to send the return ii. How to pay any balance due/receive any refund owed ii High-level summary of the return: key drivers/tax adjustments of amy balance due/refund owed b. ax return i. Form 120+ additional forms as required based on the facts and circumstances (Form 1120 is not the only form that will be required as port of this assignment All relevant forms are available at IRS.gov) Additional statements (prepared by you) that need to be attached to ii. the return based upon the facts and circumstances C. Workpapers you've prepared in support of the calculations included in the tax return. Your workpapers should be submitted in Excel, Word, or PDF ormat 2) This project may be completed individually or in teams of up to 3 3) You will be allowed to send your client one round of follow-up questions (max of five). These questions should be submitted no later than Tuesday, May 21, 2019 at 5pm. You should expect responses to your follow-up questions by Friday, May 24, 2019, at 9am. Follow-up questions should be sent to cgatieuw.edu and written professionally 4) Completed tax returns are due Tuesday, May 28, 2019, at 5pm Gayle Corporation is a calendar year taxpayer that was formed on March 3I 2018 * It was incorporated as a C corporation in the state of Washington * It is an accrual method taxpayer * * Its primary industry is broadcast communications. * Its corporate office is located at 8562 Seaway Boulevard, Seattle, WA 98123 phone number (206) 867-5555 * Gayle Corporation is not part of a consolidated group for U.S. tax purposes, and it is not a personal holding corporation or personal services corporation. * As part of this exercise. Gayle Corporation will need to apply for an Employer Identification Number (EIN) Gayle Corporation's shareholders were as follows at formation l) Monty Gautier, SSN 222-222-3333 Address: 5076 171k Avenue, Seattle, WA 98122. Received 20,000 shares of Gayle Co. common stock in exchange for performing services valued at $20,000 2) Aggie Swenson, SSN 1-2222 Address: 998 Large Avenue, Seattle, WA 98176 Contributed TV equipment (FMV $20,000, adjusted basis $5,000, purchased for $12,000 on February 1, 2016) in exchange for 20,000 shares of Gayle Co common stock. 3) Moss Corporation, EIN 867-530-9555 Address: 223 Avenue Louise, Brussels, Belgium 1004 Contributed a building (FMV $60,000, adjusted basis $20,000, purchased for $30,000 on January I, 2010) in exchange for 51,000 shares of Gayle Co. common stock and a Gayle Co. note of $9,000 4) Carolina McLean, SSN 999-999-8765 Address: 327 Andre Reynolds Drive, Lisbon, Portugal Contributed recording equipment (FMV $9,000 adjusted basis $15,000 purchased for $12,000 on November I, 2017) in exchange for 9,000 shares of Gayle Co. common stock. At formation, total shares issued and outstanding: 100,000 shares of common stock. During 2018, the following events occurred 1) Gayle Corporation received dividends as follows a. June , 2018 - $65,000 from Alphabet Inc, a company in which Gayle Co. owns a 10% interest. b. September I, 2018 - $100,000 from South Seattle Corp., a company in which Gayle Co. owns a 75% interest. 2) Gayle Corporation made distributions as follows: a. June I, 2018- $20,000 cash to Monty Gautier b. July I, 2018 - $20,000 cash to Aggie Swenson C. September 1, 2018-property (FMV $51,000, adjusted basis $20,000 E&P adjusted basis $30,000, historical cost $40,000) to Moss Corporation d. October I, 2018 $9,000 cash to Carolina McLean e. November I, 2018 - property (FMV $30,000, adjusted basis $15,000 E&P adjusted basis $15,000, historical cost $22,000) in complete termination of Aggie Swenson's interest in Gayle Corporation. Aggie Swenson also assumed a $10,000 liability associated with the distributed property 3) Gayle Corporation made estimated tax payments of $100,000 4) Gayle Corporation capitalized the contributed services from Monty Gautier and fully amortized them during the year. Book and tax amortization are equal. 5) Gayle Corporation accrued $250,000 related to accrued compensation. $200,000 was paid to employees by March 15, 2019 6) Gayle Corporation accrued bad debt expense of $75,000 during the year, however only $35,000 of bad debts were actually written off in 2018. 7) Gayle Corporation made $300,000 of qualified charitable contributions. For purposes of this exercise, assume that no special provisions (medical contributions, etc.) related to charitable contributions apply 8) Gayle Corporation purchased and placed in service $150,000 of assets (TV monitors) that it would like to fully expense under IRC Sec. 179 9) Gayle Corporation placed in service the following assets during the year which it would like to depreciate using standard MACRS depreciation a. TV equipment received from shareholder Aggie Swenson b. Building received from shareholder Moss Corporation c. Recording equipment received from shareholder Carolina McLean d. Office equipment (chairs, tables, desks) purchased on June l, 2018 for $10,000 10)On December 3 I, 2018, Gayle Corporation sold the TV equipment received at formation from shareholder Aggie Swenson for $21,000 (E&P basis in the TV equipment was $7,000 at time of sale) ll) On December 31, 2018, Gayle Corporation sold its 10% interest in Alphabet Inc. It sold its interest for $750,000, and it was originally purchased for $1,000,000 (E&P basis in its interest - tax basis) 12) For purposes of this tax return, assume that the only transactions between Moss Corporation and Gayle Corporation are the transactions detailed above, and those payments are not base-erosion payments 13) At the end of the year, Gayle Corporation's balance sheet and income statement were as follows: For the year ended 12/3 1/2018 Income Advertising revenue $2,000,000 $65,000 Dividends- Alphabet Inc. Dividends South Seattle Corp $100,000 Interest income on tax-exempt bonds $15,000 $2,180,000 xpense: $400,000 Salaries and compensation Accrued Vacation/bonus %250,000 Bad debt expense $75,000 Amortization of services $20,000 Depreciation $55,000 Charitable contributions $300,000 Capital loss on sale of Alphabet Inc. Stock $250,000 Other operating expenses $275,000 $100,000 Tax expense accrued $I,725,000 Book Net incom $455,000 Assets 3131/18 12/31/18 Cash $1,000,000 Accounts Receivable $500.000 $40,000 $8,000 Building (net) TV equipment Recording equipment TV monitors $60,000 $20,000 $9,000 $6,000 $100,000 Capitalized services $20,000 Stock in Alphabet Inc. Investment in Subsidiary $200.000 $109,000 $1,654,000