Need to Fill Form 1120

Razorback Sports Inc. was formed in 2016 by Austin Williams and Tyler Jacobs. Austin and Tyler officially incorporated their store on March 12, 2016. Razorback Sports sells all kinds of sports-related products including equipment, uniforms and athletic shoes. Austin owns 50% of the outstanding common stock of Razorback Sports and Tyler owns the remaining 40%. Razorback Sports is located at 123 College Ave, Fayetteville, AR 72701. Its employer identification number is 29-5748859 and its business activity code is 451110. Razorback Sports uses the accrual method of accounting and has a calendar year-end. The officers of Razorback Sports and their Social Security numbers are: Name Austin Williams Tyler Jacobs Kellie Francis Jason Roberts Title CEO/President Executive VP Operations VP Secretary SS number 123-45-6789 789-12-3456 321-54-9876 987-65-4321 A trial balance for the corporation is attached. Additional information is presented below. Amount 3,885 1. Razorback Sports has a capital loss carry over from last year of 2. b. 5,994 3,802 6,854 c. 3. Interest income: From a city of Fayetteville bond that was used to fund new police station From a U.S. Treasury bond From a money market account Razorback Sports sold equipment. Selling price Original purchase price c. Total book depreciation on the equipment Total tax depreciation on the equipment Razorback Sports' dividend income came from Cardinal Inc. Razorback Sports owned 25,000 shares of the stock in Cardinal at the beginning of the year. This represented 25% of the Cardinal outstanding stock b. 10,878 12,654 6,383 8,769 4. 4. Razorback Sports' dividend income came from Cardinal Inc. Razorback Sports owned 25,000 shares of the stock in Cardinal at the beginning of the year. This represented 25% of the Cardinal outstanding stock. 5. On July 22, 2019 Razorback Sports sold 2,500 shares of its Cardinal Inc. stock. a Selling price b. Razorback originally purchased these shares on April 24, 2017 After the sale, Razorback Sports owned 22.5% of Cardinal Inc. 38,850 26,640 6. Interest expense: a. From the mortgage on Razorback Sports' building The business expense limit does not apply to Razorback Sports 68,820 7. Wages to non-officers are 627,150 8. 9. 3,608 Pension expense is the same for both book and tax purposes. Miscellaneous expenses include premiums paid on term life insurance policies on the lives of Austin and Tyler (Razorback Sports is the beneficiary of the life insurance policies). 10. Miscellaneous expenses include parking fines issued by the city of Fayetteville 11. The corporation uses MACRS depreciation for tax purposes. The corporation purchased all of its equipment on July 1, 2016. Razorback Sports took the maximum amount of $179 depreciation (no bonus depreciation). The equipment is all 7 year property. Cost of the equipment 194 a. 832,500 12. Accounts receivable written off by Razorback Sports during the year were 49,950 13. On December 1, 2019 Razorback Sports paid a dividend to its shareholders of 88,800 45,620 305,250 283,050 133,200 94,350 14. Razorback Sports made four equal estimated tax payments of If it has overpaid its federal tax liability, Razorback would like to receive a refund. 15. The corporation paid the following compensation to its officers: Austin Williams Tyler Jacobs Kellie Francis Jason Roberts 16. All officers devote 100% of their time to the business and all officers are US citizens. 17. Neither Kellie nor Jason owns any stock in Razorback Sports. Accounts payable 249,750 Accounts receivable 777,000 Accumulated depreciation 416,250 Advertising expense 55,500 Allowance for doubtful accounts 57,665 Bad debt expense 41,070 Capital gains 12,210 Capital stock (common) 999,000 Cash 376,623 Charitable contributions 29,970 Compensation expense 1,443,000 Cost of goods sold 921,300 Depreciation expense 22,200 Dividends (paid) 88,800 Dividends (received) 13,320 Entertainment expense 6,771 Equipment 832,500 Federal income tax expense 278,388 3 4,496 68,820 16,650 1,914,750 155,400 305,250 77,700 3,052,500 22,200 9,047 45,510 1,703,961 Gain from disposition of fixed assets Interest expense Interest income Inventory Investments in state & local bonds Investments in stock Investment in U.S. government bonds Land Maintenance expense Meals expense Miscellaneous expense Mortgage payable Other assets Other current liabilities Other liabilities Other taxes expense Pension plans expense Professional services expense Property tax expense Retained earnings (1/1/2019) Sales Sales returns & allowance State income tax expense Supplies expense 299,700 146,520 205,350 62,160 46,620 35,520 44,400 3,518,700 3,796,700 46,620 72,150 9,102 $11,140,571 $11,140,571 Razorback Sports Inc. was formed in 2016 by Austin Williams and Tyler Jacobs. Austin and Tyler officially incorporated their store on March 12, 2016. Razorback Sports sells all kinds of sports-related products including equipment, uniforms and athletic shoes. Austin owns 50% of the outstanding common stock of Razorback Sports and Tyler owns the remaining 40%. Razorback Sports is located at 123 College Ave, Fayetteville, AR 72701. Its employer identification number is 29-5748859 and its business activity code is 451110. Razorback Sports uses the accrual method of accounting and has a calendar year-end. The officers of Razorback Sports and their Social Security numbers are: Name Austin Williams Tyler Jacobs Kellie Francis Jason Roberts Title CEO/President Executive VP Operations VP Secretary SS number 123-45-6789 789-12-3456 321-54-9876 987-65-4321 A trial balance for the corporation is attached. Additional information is presented below. Amount 3,885 1. Razorback Sports has a capital loss carry over from last year of 2. b. 5,994 3,802 6,854 c. 3. Interest income: From a city of Fayetteville bond that was used to fund new police station From a U.S. Treasury bond From a money market account Razorback Sports sold equipment. Selling price Original purchase price c. Total book depreciation on the equipment Total tax depreciation on the equipment Razorback Sports' dividend income came from Cardinal Inc. Razorback Sports owned 25,000 shares of the stock in Cardinal at the beginning of the year. This represented 25% of the Cardinal outstanding stock b. 10,878 12,654 6,383 8,769 4. 4. Razorback Sports' dividend income came from Cardinal Inc. Razorback Sports owned 25,000 shares of the stock in Cardinal at the beginning of the year. This represented 25% of the Cardinal outstanding stock. 5. On July 22, 2019 Razorback Sports sold 2,500 shares of its Cardinal Inc. stock. a Selling price b. Razorback originally purchased these shares on April 24, 2017 After the sale, Razorback Sports owned 22.5% of Cardinal Inc. 38,850 26,640 6. Interest expense: a. From the mortgage on Razorback Sports' building The business expense limit does not apply to Razorback Sports 68,820 7. Wages to non-officers are 627,150 8. 9. 3,608 Pension expense is the same for both book and tax purposes. Miscellaneous expenses include premiums paid on term life insurance policies on the lives of Austin and Tyler (Razorback Sports is the beneficiary of the life insurance policies). 10. Miscellaneous expenses include parking fines issued by the city of Fayetteville 11. The corporation uses MACRS depreciation for tax purposes. The corporation purchased all of its equipment on July 1, 2016. Razorback Sports took the maximum amount of $179 depreciation (no bonus depreciation). The equipment is all 7 year property. Cost of the equipment 194 a. 832,500 12. Accounts receivable written off by Razorback Sports during the year were 49,950 13. On December 1, 2019 Razorback Sports paid a dividend to its shareholders of 88,800 45,620 305,250 283,050 133,200 94,350 14. Razorback Sports made four equal estimated tax payments of If it has overpaid its federal tax liability, Razorback would like to receive a refund. 15. The corporation paid the following compensation to its officers: Austin Williams Tyler Jacobs Kellie Francis Jason Roberts 16. All officers devote 100% of their time to the business and all officers are US citizens. 17. Neither Kellie nor Jason owns any stock in Razorback Sports. Accounts payable 249,750 Accounts receivable 777,000 Accumulated depreciation 416,250 Advertising expense 55,500 Allowance for doubtful accounts 57,665 Bad debt expense 41,070 Capital gains 12,210 Capital stock (common) 999,000 Cash 376,623 Charitable contributions 29,970 Compensation expense 1,443,000 Cost of goods sold 921,300 Depreciation expense 22,200 Dividends (paid) 88,800 Dividends (received) 13,320 Entertainment expense 6,771 Equipment 832,500 Federal income tax expense 278,388 3 4,496 68,820 16,650 1,914,750 155,400 305,250 77,700 3,052,500 22,200 9,047 45,510 1,703,961 Gain from disposition of fixed assets Interest expense Interest income Inventory Investments in state & local bonds Investments in stock Investment in U.S. government bonds Land Maintenance expense Meals expense Miscellaneous expense Mortgage payable Other assets Other current liabilities Other liabilities Other taxes expense Pension plans expense Professional services expense Property tax expense Retained earnings (1/1/2019) Sales Sales returns & allowance State income tax expense Supplies expense 299,700 146,520 205,350 62,160 46,620 35,520 44,400 3,518,700 3,796,700 46,620 72,150 9,102 $11,140,571 $11,140,571