Mr. X and Y each invested $50,000 to start a plumbing business on 01/01/2016

Prepare 2016 CORPORATETax Return from the following information

Use irs.gov form 1120 and fill out all pages of form

Dr Cr

Cash 23,000

Accounts Receivable 85,000

Investment in Stocks/Bonds 30,000

Equpment 185,000

Accumulated Depreciation 43,000

Accounts Payable 120,000

Partners Capital 100,000

Sales 873,000

Interest income 2,500

Dividend ( 5% owned) 1,500

Cost of sales 450,000

Salaries to X 50,000

Salaries to Y 50,000

Other salaries 85,000

Charitable Contribution 1,000

Rent 60,000

Utilities 18,000

Penalties 1,000

Advertising 24,000

Depreciation-MACRS 43,000

Contract Labor 35,000

1,140,000 1,140,000

Taxable Income 55,950