Melodic Musical Sales, Inc. 2019 Form 1120 Current year depreciation on property placed in service before 2019: Building ($2,000,000 0.02564) Equipment 1 ($250,000 x 0.1249 x 0.5) Equipment 2 ($500,000 x 0.1249) Trucks ($100,000 0.192) Total Current year depreciation on equipment placed in service in 2019: Sec. 179 expensing Total current-year depreciation $ 51,280 15,613 62,450 19,200 $148,543 $600,000 $748,543 Capital gains and losses for 2019: Short-term capital gain on sale of PDQ stock Long-term capital loss on sale of JSB stock $ 55,000 (10,000) Sale of Equipment 1: Selling price $280,000 Cost $250,000 Minus: Accumulated depreciation (156,288) Adjusted basis Gain recognized Sec. 1245 recapture Sec. 1231 gain (93,712) $186,288 $156,288 $ 30,000 Underpayment penalty: Omit Form 2220 and insert $3,809 penalty on Form 1120, Page 1, Line 34. BONUS: Complete Form 2220 and submit with tax return and supporting schedules. Form 1120 Check Figures: Line 11 Total Income Line 27 Total Deductions $5,478,288 $2,461,043 Line 35 Amount Owed $ 81,170