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Option #2: Form 112, Schedule L, M-1, and M-2 Apex Corporation was incorporated on January 1, 2017. Here is the income statement for Apex Corp.

Option #2: Form 112, Schedule L, M-1, and M-2

Apex Corporation was incorporated on January 1, 2017. Here is the income statement for Apex Corp. for 2017. Please complete the Form 1120 using ProConnect Tax Online.

Revenue from sales

40,000,000

Cost of goods sold

27,000,000

Gross profit

13,000,000

Other income

Income from investment in corporate stock

300,000

Interest income

20,000

Capital gains (losses)

-4000

Gain or loss from disposition of fixed assets

3,000

Miscellaneous income

50,000

Gross income

13,369,000

Expenses

Compensation

7,500,000

Stock option compensation

200,000

Advertising

1,350,000

Repairs and maintenance

75,000

Rent

22,000

Bad debt expense

41,000

Depreciation

1,400,000

Warranty expenses

70,000

Charitable donations

500,000

Meals

18,000

Goodwill impairment

30,000

Organizational expenditures

44,000

Other expenses

140,000

Total expenses

11,390,000

Income before taxes

1,979,000

Provision for income taxes

720,000

Net income before taxes

1,259,000

APEX Corporation Balance Sheet

January 1, 2017 (in $)

Assets

Current Assets

Cash

580,000

Investment in Bonds

Accounts Receivable

470,000

Less Allowance for bad debts

-

Accounts Receivable (net)

470,000

Inventory

300,000

Total Current Assets

1,350,000

Non Current Assets

Fixed Assets

21,170,000

Less Accum. Depreciation

-

Fixed Assets (net)

21,170,000

Life Insurance

Investments in stocks

10,050,000

Goodwill

120,000

Total Noncurrent Assets

31,340,000

Total Assets

32,690,000

Liabilities and Shareholders' Equity

Current Liabilities

Accounts Payable

370,000

Reserve for Warranties

800,000

Total Current Liabilities

1,170,000

Non Current Liabilities

Long -term debt

19,000,000

Deferred compensation

-

Deferred tax Liabilities

-

Total Non Current Liabilities

19,000,000

Total Liabilities

20,170,000

Shareholders Equity

Common Stack ( $1 par value)

5,000,000

Additional Paid In Capital

7,520,000

retained earnings

-

Total Shareholders Equity

12,520,000

Total Liabilities and Shareholders Equity

32,690,000

Here are some other data:

  1. The total compensation of officers is $2,500,000; other wages and salaries is $5,000,000.
  2. Apex actually wrote off $27,000 of its accounts receivable as uncollectible.
  3. Charitable contributions, $500,000, were all cash contributions.
  4. Tax depreciation was $1,900,000.
  5. Apex wrote off $30,000 of goodwill as impaired.
  6. Apexs dividends received deduction is $130,000
  7. Apex made $480,000 in estimated tax payments.
  8. Apexs taxable interest income is $8,000.
  9. Apexs other deductions are 166,600.

For your final Portfolio Project, submit Form 1120, page 1-5, Schedule L, M-1, and M-2

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