Miss Harrell and Smith, Inc , 204 Ambulance Street, Anywhere, CA 92345, is a corporation (EIN 57 1234567) formed on January 1, 2015 Information concerning the corporation and its two shareholders follows It uses the tax cash basis accounting, did not pay dividends in excess of earnings and profits, has no foreign shareholders, is not publicly traded, and has no NOL carrybacks Bruce Harrell (SSN 412 34 5670), 1018 Lexington Downs, Anywhere, CA 92345 is a 60 shareholder Della Smith (SSN 412 34 5671), 4564 Yates Rd , Anywhere, CA 92345, is a 40 shareholder Bruce received a dividend of $60,000, and Della received a dividend of $40,000 Both of these dividends are in addition to their salaries Harrell and Smith, Inc Comparative Balance Sheet As of December 31, 2020 and December 31, 2021 Assets 12 31 17 12 31 18 Cash $ 39,955 $ 45,459 Investments 258,456 169,125 Office Equipment 225,000 310,759 Accumulated Depreciation (Equipment) (156,000) (165,379) Building 491,200 491,200 Accumulated Depreciation (Building) (37,232) (49,826) Total Assets $821,379 $801,338 Liabilities and Equity Notes Payable $ 353,600 $ 335,458 Common Stock 10,000 10,000 Retained Earnings 457,779 455,880 Total Liabilities and Equity $821,379 $801,338 Harrell and Smith, Inc Income Statement For the Year Ending December 31, 2021 Revenue Consulting Income $866,689 Interest Income 4,231 Rental Income 9,000 Dividend Income (Qualified) 8,234 Long Term Capital Losses (8,200) Total Revenue $879,954 Expenses Salaries and Wages (non owners) $253,000 Officers Salaries Harrell 225,000 Smith 150,000 Depreciation 21,973 Interest Expense 20,127 Taxes and Licenses 24,051 Utilities 15,500 Travel 11,850 Meals (100 ) 12,452 Auto 18,500 Insurance (health) 7,000 Accounting and legal 6,450 Repairs 3,200 Charitable Contributions 12,000 Payroll Penalties 750 Total Expenses $781,853 Net Income $ 98,101 Prepare Form 1120 pages 1 5 for Harrell and Smith, Inc Schedule D, and Form 4562 can be omitted (the information given is not sufficient to complete these forms)

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Miss Harrell and Smith, Inc., 204 Ambulance Street, Anywhere, CA 92345, is a corporation (EIN 57-1234567) formed on January 1, 2015. Information concerning the corporation

Miss Harrell and Smith, Inc., 204 Ambulance Street, Anywhere, CA 92345, is a corporation (EIN 57-1234567) formed on January 1, 2015. Information concerning the corporation and its two shareholders follows. It uses the tax/cash basis accounting, did not pay dividends in excess of earnings and profits, has no foreign shareholders, is not publicly traded, and has no NOL carrybacks.

Bruce Harrell (SSN 412-34-5670), 1018 Lexington Downs, Anywhere, CA 92345 is a 60% shareholder. Della Smith (SSN 412-34-5671), 4564 Yates Rd., Anywhere, CA 92345, is a 40% shareholder. Bruce received a dividend of $60,000, and Della received a dividend of $40,000. Both of these dividends are in addition to their salaries.

Harrell and Smith, Inc. Comparative Balance Sheet As of December 31, 2020 and December 31, 2021
Assets:
	12/31/17	12/31/18
Cash	$ 39,955	$ 45,459
Investments	258,456	169,125
Office Equipment	225,000	310,759
Accumulated Depreciation (Equipment)	(156,000)	(165,379)
Building	491,200	491,200
Accumulated Depreciation (Building)	(37,232)	(49,826)

Total Assets:	$821,379	$801,338

Liabilities and Equity:

Notes Payable	$ 353,600	$ 335,458
Common Stock	10,000	10,000
Retained Earnings	457,779	455,880

Total Liabilities and Equity	$821,379	$801,338

Harrell and Smith, Inc. Income Statement For the Year Ending December 31, 2021
Revenue:
Consulting Income	$866,689
Interest Income	4,231
Rental Income	9,000
Dividend Income (Qualified)	8,234
Long-Term Capital Losses	(8,200)

Total Revenue	$879,954

Expenses:

Salaries and Wages (non-owners)	$253,000
Officers Salaries
Harrell	225,000
Smith	150,000
Depreciation	21,973
Interest Expense	20,127
Taxes and Licenses	24,051
Utilities	15,500
Travel	11,850
Meals (100%)	12,452
Auto	18,500
Insurance (health)	7,000
Accounting and legal	6,450
Repairs	3,200
Charitable Contributions	12,000
Payroll Penalties	750

Total Expenses	$781,853
Net Income	$ 98,101

Prepare Form 1120 pages 1-5 for Harrell and Smith, Inc. Schedule D, and Form 4562 can be omitted (the information given is not sufficient to complete these forms).