please answer questions 1-4 to the best of your abilities.

please complete a schedule m1 and tax return on form 1120. On form 1120 i need to know the number on line 28 and 30. If info isnt listed assume a zero for these forms. If you need more info ask specific questions please.

2020 ACC302 Spring 2020 REVISED TAX RETURN ASSIGNMENT REVISED 0127.200) - Word (Unlicensed Product Mailings Review View Help Tell me what you want to do et eo A 1 Normal 1 No Spa Heading Heading Title Subtitles Paragraph uct is inactive. To use for free, sign in and use the Web version Activate Use free at Office.com ACC302 Spring 2020 TAX RETURN ASSIGNMENT REVISED 3/27/20 FOR NEW NUMBERS in SELLING AND MARKETING COSTS Anti Virus Inc was formed in early 2019, funded by some venture capitalists who owns 90% of the company stock and the other 10% is owned by the top five officers of the Corporation (each hold 2) AV ronts the basement in the Trump Hotel-1100 Pennsylvania Ave NW Washington DC is the address for the headquarters of AV, which was incorporated in Delaware, on 1/1/2019 AVI somehow was tipped off to the potential for a catastrophic virus that was rumored to be causing early stage havoc in China. They act as a distributor of tests" to check this virus. They have a number of suppliers in India and Russia for these test packets. AVI buys from the suppliers and sells throughout the USA Business began to boom. They hold almost NO INVENTORY - they just act as the middleman They want us to do their tax return for 2019. Here's what they gave me for their 2019 first year of Operations Financial Statement- Gross Salos $ 150 million Cost of Sales $80 million Selling and Marketing costs $50 million Administrative costs $10 million Interest income $1 million Dividend Income $2 million (small 10% investment in TRUMP CORP) Net Profit Pre Tax is $12 million Tax per Books was 2 million Net profit after tax was $10 million Breakdown of expenses - Selling and marketing costs - Bribes to Local Hospital Officials $1 million; Bribes to 4 US Senators $2 million (each guy got $500,000 for helping AVI become the leading supplier of virus tests!): Bribes to the suppliers in India and Russia were $20 million in total (these suppliers WERE going to sell to the Chinese UNTIL AVI saved the day and got them to supply the USA - it just took a little "payola!"). Fine levied by the US government against AVI was $15 million under the Foreign Corrupt Practice Act for bribing those foreign countries! Wahh! Advertising costs - $5,000,000. Sales commissions to employees $1,500,000. Salaries to salespeople-$5 million Depreciation - 100% bonus depreciation was taken on the SUPER ANTIVIRUS VEHICLES used to deliver the test kits. This depreciation for tax was $2,500,000, the costs of these vehicles. For book purposes $500,000 of depreciation expense was recorded since the company estimated a 5. year life on these assets that cost $2.5 million. Administration costs included in the $10 million are - Officer Comp $5 million och officer got $1 million), Fringe benefits - $1 million, Pensions, olc - $1 million, Othor salarios $1 million, Entertainment i Paragraph Styles act is inactive. To use for free, sign in and use the Web version. Activate Use free at Office.com Administration costs - included in the $10 million are - Officer Comp $5 million (each officer got $1 million!): Fringe benefits - $1 million; Pensions, etc - $1 million, Other salaries $1 million, Entertainment $500,000; Meals $200,000 (assume 1.2 of these meals can be deducted for tax purposes), Rental of Building-Headquarters $300,000. Donations to various universities (keep those professors happy!) - $200,000. State tax expenses $300,000. Start up costs $180,000; Miscellaneous other costs - $320,000 Breakdown of Other things? The interest income of $1 million included $500 000 from an investment in State of California Bonds and another $400,000 from investment in State of New York Bonds. The balance of $100,000 was interest received from an investment into a Russian Bank Also, they told me they paid a $5 million dividend - $4.5 to the VC company and the remaining $500,000 was paid $100,000 to each of the 5 officers. Paid on Christmas day - 12/25/2019. The VC company was based in South Korea, by the way. The VC company was funded significantly by Banco De Milano (75% investment, the other 25% of the VC was held by businessmen in Hong Cong), based of course in Italy Finally - THEY PAID NO TAX to the FEDERAL GOVERNMENT in the USA - at least not NYETI BUT they did pay that state tax I mentioned abovel (I think they would be granted a federal tax exemption by their friends in Congress - sort of like a "bail out!") THAT'S ALL I GOT FOR NOW! Finally - THEY PAID NO TAX to the FEDERAL GOVERNMENT in the USA - at least not NYETI BUT they did pay that state tax I mentioned abovel (I think they would be granted a federal tax exemption by their friends in Congress - sort of like a "bail out!") THAT'S ALL I GOT FOR NOW! Can you use this data and -- 1. Complete the Schedule M-1 (feel free to do it first on that Excel Spreadsheet I gave youl) 2. Tell me what Line 28 of Page 1 of the Tax Return Form 1120 should be 3. Tell me what Line 30 of same page should be. 4. Tell me how much they will owe in tax? 5. Let me know what other detail you might need? I'll be gathering up some more info, such as who the officers are, etc. Email me ANY questions Need the above by the end of March! Recall - this assignment is worth about 15% of your grade but, more importantly, could lead to a great future in the world of accounting and tax (or you might want to change your mind and go the medical school, or even better - go into politics!) Once we have an idea of AVI's tax liability I will want you to complete PAGE 1 of the Form 1120 tax return - line-by-line - for the company, too, We need to make the IRS happy - so I gave you that example/practice problem and excel sheet to help! BUT LETS HUSTLE to tell them about their potential tax duel I am sure they will then look to see who else they can bribe to get some sort of tax creditor exemption, knowing these guys! 2020 ACC302 Spring 2020 REVISED TAX RETURN ASSIGNMENT REVISED 0127.200) - Word (Unlicensed Product Mailings Review View Help Tell me what you want to do et eo A 1 Normal 1 No Spa Heading Heading Title Subtitles Paragraph uct is inactive. To use for free, sign in and use the Web version Activate Use free at Office.com ACC302 Spring 2020 TAX RETURN ASSIGNMENT REVISED 3/27/20 FOR NEW NUMBERS in SELLING AND MARKETING COSTS Anti Virus Inc was formed in early 2019, funded by some venture capitalists who owns 90% of the company stock and the other 10% is owned by the top five officers of the Corporation (each hold 2) AV ronts the basement in the Trump Hotel-1100 Pennsylvania Ave NW Washington DC is the address for the headquarters of AV, which was incorporated in Delaware, on 1/1/2019 AVI somehow was tipped off to the potential for a catastrophic virus that was rumored to be causing early stage havoc in China. They act as a distributor of tests" to check this virus. They have a number of suppliers in India and Russia for these test packets. AVI buys from the suppliers and sells throughout the USA Business began to boom. They hold almost NO INVENTORY - they just act as the middleman They want us to do their tax return for 2019. Here's what they gave me for their 2019 first year of Operations Financial Statement- Gross Salos $ 150 million Cost of Sales $80 million Selling and Marketing costs $50 million Administrative costs $10 million Interest income $1 million Dividend Income $2 million (small 10% investment in TRUMP CORP) Net Profit Pre Tax is $12 million Tax per Books was 2 million Net profit after tax was $10 million Breakdown of expenses - Selling and marketing costs - Bribes to Local Hospital Officials $1 million; Bribes to 4 US Senators $2 million (each guy got $500,000 for helping AVI become the leading supplier of virus tests!): Bribes to the suppliers in India and Russia were $20 million in total (these suppliers WERE going to sell to the Chinese UNTIL AVI saved the day and got them to supply the USA - it just took a little "payola!"). Fine levied by the US government against AVI was $15 million under the Foreign Corrupt Practice Act for bribing those foreign countries! Wahh! Advertising costs - $5,000,000. Sales commissions to employees $1,500,000. Salaries to salespeople-$5 million Depreciation - 100% bonus depreciation was taken on the SUPER ANTIVIRUS VEHICLES used to deliver the test kits. This depreciation for tax was $2,500,000, the costs of these vehicles. For book purposes $500,000 of depreciation expense was recorded since the company estimated a 5. year life on these assets that cost $2.5 million. Administration costs included in the $10 million are - Officer Comp $5 million och officer got $1 million), Fringe benefits - $1 million, Pensions, olc - $1 million, Othor salarios $1 million, Entertainment i Paragraph Styles act is inactive. To use for free, sign in and use the Web version. Activate Use free at Office.com Administration costs - included in the $10 million are - Officer Comp $5 million (each officer got $1 million!): Fringe benefits - $1 million; Pensions, etc - $1 million, Other salaries $1 million, Entertainment $500,000; Meals $200,000 (assume 1.2 of these meals can be deducted for tax purposes), Rental of Building-Headquarters $300,000. Donations to various universities (keep those professors happy!) - $200,000. State tax expenses $300,000. Start up costs $180,000; Miscellaneous other costs - $320,000 Breakdown of Other things? The interest income of $1 million included $500 000 from an investment in State of California Bonds and another $400,000 from investment in State of New York Bonds. The balance of $100,000 was interest received from an investment into a Russian Bank Also, they told me they paid a $5 million dividend - $4.5 to the VC company and the remaining $500,000 was paid $100,000 to each of the 5 officers. Paid on Christmas day - 12/25/2019. The VC company was based in South Korea, by the way. The VC company was funded significantly by Banco De Milano (75% investment, the other 25% of the VC was held by businessmen in Hong Cong), based of course in Italy Finally - THEY PAID NO TAX to the FEDERAL GOVERNMENT in the USA - at least not NYETI BUT they did pay that state tax I mentioned abovel (I think they would be granted a federal tax exemption by their friends in Congress - sort of like a "bail out!") THAT'S ALL I GOT FOR NOW! Finally - THEY PAID NO TAX to the FEDERAL GOVERNMENT in the USA - at least not NYETI BUT they did pay that state tax I mentioned abovel (I think they would be granted a federal tax exemption by their friends in Congress - sort of like a "bail out!") THAT'S ALL I GOT FOR NOW! Can you use this data and -- 1. Complete the Schedule M-1 (feel free to do it first on that Excel Spreadsheet I gave youl) 2. Tell me what Line 28 of Page 1 of the Tax Return Form 1120 should be 3. Tell me what Line 30 of same page should be. 4. Tell me how much they will owe in tax? 5. Let me know what other detail you might need? I'll be gathering up some more info, such as who the officers are, etc. Email me ANY questions Need the above by the end of March! Recall - this assignment is worth about 15% of your grade but, more importantly, could lead to a great future in the world of accounting and tax (or you might want to change your mind and go the medical school, or even better - go into politics!) Once we have an idea of AVI's tax liability I will want you to complete PAGE 1 of the Form 1120 tax return - line-by-line - for the company, too, We need to make the IRS happy - so I gave you that example/practice problem and excel sheet to help! BUT LETS HUSTLE to tell them about their potential tax duel I am sure they will then look to see who else they can bribe to get some sort of tax creditor exemption, knowing these guys