please assist with Schedule L, M-1, and M-2 on Form 1120.

Font Paragraph 1 Bizrate Electronics, Inc. A "C" Corporation For the Year Ended December 31, 2018 Bizcate Electronics was organized on February 22, 2018, by Jon Jones and Billy Burt, Jon contributed $270,000 cash and SBUX stock (acquired 01/01/2017) worth $30,000 for 60% of Bicats stock, while Billy contributed $200,000 cash for 40% of the stock. Jon's social security number is 123-45- 6789 and Billy's is 987-65-4321. Bizrate's employer ID number is 12-3456789. Bizcate began business on March 1, 2018. Bizrate is a retail electronics outlet located at 118812 Josey Lane, Louisville, KY 40018. Bizrate uses the accrual method of accounting, the first-in, first-out (FIFO) inventory method, and a calendar year. Bizcate's 2013 income statement, balance sheet, and statement of changes in retained earnings are on the following pages.x Tools Layout Tell me what you want to do... Kudela, Lauren 2. Shar Find - ac Replace 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Intense E... Select- Styles Editing Bizrate Electronics, Inc. Income Statement For the Year Ended December 31, 2018 Sales Returns and Allowances 4,700,000 (50,000) 4,650,000 Beginning inventory Purchases 0 4,050,000 4,050,000 (1,700,000) Ending Inventory Gross Profit Expenses (2,350,000 2,300,000 Salaries (a) Depreciation (b) Advertising Bad Debts Rent Interest (c) Utilities Delivery Expense office Supplies Repairs and Maintenance Organization Expense (d) Meals and Entertainment Insurance Expense (e) Payroll Taxes 2018 Federal Income Tax Deposits Other Taxes Fines and Penalties (Traffic) Accounting and Legal Charitable contributions - Red Cross Real Estate Taxes on investment Land 980,000 75,400 30,000 39,000 100,000 39,500 38,300 34,900 46,200 29,000 6,000 80,000 36,000 113,300 250,000 20,000 1,000 12,000 18,000 800 1,949,400 350,600 Other income I Gain on sale of Stock (f) Sale of Delivery Truck (6) Interest on County Tax Exempt Bonds Interest on CDS Dividends from US Corporations (h) 4,000 3,600 1,100 11,500 5,600 30,800 381,400 Net Income 2 Page Calculator Acrobat R.. P! Bizrate_EL... ge My Stuff 1:33 AM 10/4/2020 Bizrate El... Biztate Electronics, Inc. Notes to Income Statement a includes salaries: Jon Jones $200,000, Billy Burt $50,000 b. Depreciation for tax purposes $112,700. c. $2,500 is allocable to the investments in stock. The remainder is related to Biztate's business. d. $6,000 in fees were incurred in organizing Biztate. e f. Includes $5,000 of premiums for term life insurance on Jon and Billy. Bizrate is the beneficiary of these policies. In addition, $4,300 of the health insurance premiums are attributable to coverage for Jon and his family, and $3,900 are attributable to coverage for Billy and his family. Sold 500 shares of SBux stock for $35,000 on December 1, 2018. The stock had been purchased by Jon on July 1, 2004 for $20,000 and was contributed by him on February 22, 2018, when it was worth $30,000. Also, on December 1, 2018 sold 100 shares of Grand View, Inc. for $2,000 The stock had been purchased on March 1, 2018 for $3,000. At no time did Biocats own more than 1% of the outstanding stock of these corporations. I Sold a delivery truck on September 23, 2018 for $35,000. The Truck had originally been purchased on May 1, 2018 for $33,400. Depreciation taken for book purposes was $7,000. Depreciation taken for tax purposes was $9,350. h. Bicate owns less than 20% of the outstanding stock of each of these corporations. Biztate Electronics, Inc. Balance Sheet December 31, 2018 Assets Assets 113,000 300,000 29,000 Cash Accounts Receivable Less Allowance for Bad Debts Inventory Tax Exempt Securities Other Current Assets Other Investments Buildings and Depreciable Assets (net) Land Total Assets 271,000 1,700,000 17,000 40,000 85,000 165 400 70,000 2,461,400 Liabilities and Equity Accounts Payable Mortgages, Notes Payable in 1 year Capital Stock Retained Earnings Total Liabilities and Equity 375,000 185,000 70,000 1,190,000 500,000 141,400 2,461,400 Bizrate Electronics, Inc. Statement of Changes in Retained Earnings For the Year Ended December 31, 2018 + Beginning Balance 0 Income Distributions 381,400 (240,000) Balance, December 31, 2018 141,400 Other Information Addresses for the owners are: Jon Jones, 3513 Jackson Street, Louisville, KY 40018 Billy Burt, 2532 Sukabush, Louisville, KY 40018 obat Reader DC Help tef 1120--201... X 6 / 6 100% Page 6 d) 113,000 271,000 1,700,000 17,000 40,000 85.000 70,000 Form 1120 (2016) Schedule L Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) ic) 1 Cash 2a Trade notes and accounts receivable 300,000 b Less allowance for bad debts 29,0001 3 Inventories 4 U.S. government obligations 5 Tax-exempt securities (see instructions 6 Other current assets attach statement 7 Loans to shareholders B Mortgage and real estate loans 9 Other investments (attach statement 10a Buildings and other depreciable assets 165,400 Less accumulated depreciation 112.700 11a Depletable assets b Less accumulated depletion 12 Land (net of any amortization) 13a Intangible assets (amortizable only b Less accumulated amortization Other assets attach statement) 15 Total assets Liabilities and Shareholders' Equity 16 Accounts payab 17 Mortgages, notes, bonds payable in less than 1 year 18 Other current liabilities (attach statement 19 Loans from shareholders 20 Mortgages notes, bonds payable in 1 year or more 21 Other liabilities attach statement 22 Capital stock: a Preferred stock bCommon stock 23 Additional paid in capital 24 Retained samnings-Appropriated attach statement 25 Retained earnings-Unappropriated 26 Adjustments to shareholders' equity attach statement 27 Less cost of treasury stock 28 Total liabilities and shareholders' equity Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions 381,400 1 Net income foss) per books 7 Income recorded on books this year 2 Federal income tax per books not included on this rotum itemizel des 2.461,400 375,000 185.000 70,000 1,190,000 500,000 141,400 2,461,400 Help iz Ratef1120--201... X 6 / 6 100% 2,461,400 375.000 185.000 70,000 1.190.000 500,000 141,400 2,461,400 15 Total assets Liabilities and Shareholders' Equity 16 Accounts payable 17 Mortgages, notes, bonds payable in less than 1 year 18 Other current liabilities (attach statement) 19 Loans from shareholders 20 Mortgages, notes, bonds payable in 1 year or more 21 Other labilities (attach statement 22 Capital stock: a Preferred stock b Common stock 23 Additional paid-in capital 24 Retained earnings---A lated attach statement) 25 Retained eamings-Unappropriated 26 Adjustments to shareholders' equity attach statement 27 Less cost of treasury stock 28 Total liabilities and shareholders' equity Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Retum Note: The corporation may be required to fle Schedule M-3. See Instructions 1 Net income foss) per books 381,400 7 Income recorded on books this year 2 Federal income tax per books not included on this retum (itemizel: 3 Excess of capital losses over capital gains Tax-exempt interest S 4 Income subject to tax not recorded on books this year itemize Deductions on this return nol charged Expenses recorded on books this year not against book income this year itemize deducted on this return temize a Depreciation a Depreciation $ b Charitable contributions b Charitable contributions $ C Travel and entertainment 3 Add lines 7 and 8 10 Add lines 1 through 5 Income page 1. in 28-ne less line 9 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 1 5 Balance at beginning of year Distributions: a Cash 2 Net income foss) per books 381,400 b Stock 3 Other increases itemize c Property 6 Other decreases temizek 7 Add lines 5 and 6 B Balance at end of year line 4 loss ine 7 Add lines 1, 2, and 3 1,100 240.000 Form 1120 2018 Font Paragraph 1 Bizrate Electronics, Inc. A "C" Corporation For the Year Ended December 31, 2018 Bizcate Electronics was organized on February 22, 2018, by Jon Jones and Billy Burt, Jon contributed $270,000 cash and SBUX stock (acquired 01/01/2017) worth $30,000 for 60% of Bicats stock, while Billy contributed $200,000 cash for 40% of the stock. Jon's social security number is 123-45- 6789 and Billy's is 987-65-4321. Bizrate's employer ID number is 12-3456789. Bizcate began business on March 1, 2018. Bizrate is a retail electronics outlet located at 118812 Josey Lane, Louisville, KY 40018. Bizrate uses the accrual method of accounting, the first-in, first-out (FIFO) inventory method, and a calendar year. Bizcate's 2013 income statement, balance sheet, and statement of changes in retained earnings are on the following pages.x Tools Layout Tell me what you want to do... Kudela, Lauren 2. Shar Find - ac Replace 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Intense E... Select- Styles Editing Bizrate Electronics, Inc. Income Statement For the Year Ended December 31, 2018 Sales Returns and Allowances 4,700,000 (50,000) 4,650,000 Beginning inventory Purchases 0 4,050,000 4,050,000 (1,700,000) Ending Inventory Gross Profit Expenses (2,350,000 2,300,000 Salaries (a) Depreciation (b) Advertising Bad Debts Rent Interest (c) Utilities Delivery Expense office Supplies Repairs and Maintenance Organization Expense (d) Meals and Entertainment Insurance Expense (e) Payroll Taxes 2018 Federal Income Tax Deposits Other Taxes Fines and Penalties (Traffic) Accounting and Legal Charitable contributions - Red Cross Real Estate Taxes on investment Land 980,000 75,400 30,000 39,000 100,000 39,500 38,300 34,900 46,200 29,000 6,000 80,000 36,000 113,300 250,000 20,000 1,000 12,000 18,000 800 1,949,400 350,600 Other income I Gain on sale of Stock (f) Sale of Delivery Truck (6) Interest on County Tax Exempt Bonds Interest on CDS Dividends from US Corporations (h) 4,000 3,600 1,100 11,500 5,600 30,800 381,400 Net Income 2 Page Calculator Acrobat R.. P! Bizrate_EL... ge My Stuff 1:33 AM 10/4/2020 Bizrate El... Biztate Electronics, Inc. Notes to Income Statement a includes salaries: Jon Jones $200,000, Billy Burt $50,000 b. Depreciation for tax purposes $112,700. c. $2,500 is allocable to the investments in stock. The remainder is related to Biztate's business. d. $6,000 in fees were incurred in organizing Biztate. e f. Includes $5,000 of premiums for term life insurance on Jon and Billy. Bizrate is the beneficiary of these policies. In addition, $4,300 of the health insurance premiums are attributable to coverage for Jon and his family, and $3,900 are attributable to coverage for Billy and his family. Sold 500 shares of SBux stock for $35,000 on December 1, 2018. The stock had been purchased by Jon on July 1, 2004 for $20,000 and was contributed by him on February 22, 2018, when it was worth $30,000. Also, on December 1, 2018 sold 100 shares of Grand View, Inc. for $2,000 The stock had been purchased on March 1, 2018 for $3,000. At no time did Biocats own more than 1% of the outstanding stock of these corporations. I Sold a delivery truck on September 23, 2018 for $35,000. The Truck had originally been purchased on May 1, 2018 for $33,400. Depreciation taken for book purposes was $7,000. Depreciation taken for tax purposes was $9,350. h. Bicate owns less than 20% of the outstanding stock of each of these corporations. Biztate Electronics, Inc. Balance Sheet December 31, 2018 Assets Assets 113,000 300,000 29,000 Cash Accounts Receivable Less Allowance for Bad Debts Inventory Tax Exempt Securities Other Current Assets Other Investments Buildings and Depreciable Assets (net) Land Total Assets 271,000 1,700,000 17,000 40,000 85,000 165 400 70,000 2,461,400 Liabilities and Equity Accounts Payable Mortgages, Notes Payable in 1 year Capital Stock Retained Earnings Total Liabilities and Equity 375,000 185,000 70,000 1,190,000 500,000 141,400 2,461,400 Bizrate Electronics, Inc. Statement of Changes in Retained Earnings For the Year Ended December 31, 2018 + Beginning Balance 0 Income Distributions 381,400 (240,000) Balance, December 31, 2018 141,400 Other Information Addresses for the owners are: Jon Jones, 3513 Jackson Street, Louisville, KY 40018 Billy Burt, 2532 Sukabush, Louisville, KY 40018 obat Reader DC Help tef 1120--201... X 6 / 6 100% Page 6 d) 113,000 271,000 1,700,000 17,000 40,000 85.000 70,000 Form 1120 (2016) Schedule L Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) ic) 1 Cash 2a Trade notes and accounts receivable 300,000 b Less allowance for bad debts 29,0001 3 Inventories 4 U.S. government obligations 5 Tax-exempt securities (see instructions 6 Other current assets attach statement 7 Loans to shareholders B Mortgage and real estate loans 9 Other investments (attach statement 10a Buildings and other depreciable assets 165,400 Less accumulated depreciation 112.700 11a Depletable assets b Less accumulated depletion 12 Land (net of any amortization) 13a Intangible assets (amortizable only b Less accumulated amortization Other assets attach statement) 15 Total assets Liabilities and Shareholders' Equity 16 Accounts payab 17 Mortgages, notes, bonds payable in less than 1 year 18 Other current liabilities (attach statement 19 Loans from shareholders 20 Mortgages notes, bonds payable in 1 year or more 21 Other liabilities attach statement 22 Capital stock: a Preferred stock bCommon stock 23 Additional paid in capital 24 Retained samnings-Appropriated attach statement 25 Retained earnings-Unappropriated 26 Adjustments to shareholders' equity attach statement 27 Less cost of treasury stock 28 Total liabilities and shareholders' equity Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions 381,400 1 Net income foss) per books 7 Income recorded on books this year 2 Federal income tax per books not included on this rotum itemizel des 2.461,400 375,000 185.000 70,000 1,190,000 500,000 141,400 2,461,400 Help iz Ratef1120--201... X 6 / 6 100% 2,461,400 375.000 185.000 70,000 1.190.000 500,000 141,400 2,461,400 15 Total assets Liabilities and Shareholders' Equity 16 Accounts payable 17 Mortgages, notes, bonds payable in less than 1 year 18 Other current liabilities (attach statement) 19 Loans from shareholders 20 Mortgages, notes, bonds payable in 1 year or more 21 Other labilities (attach statement 22 Capital stock: a Preferred stock b Common stock 23 Additional paid-in capital 24 Retained earnings---A lated attach statement) 25 Retained eamings-Unappropriated 26 Adjustments to shareholders' equity attach statement 27 Less cost of treasury stock 28 Total liabilities and shareholders' equity Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Retum Note: The corporation may be required to fle Schedule M-3. See Instructions 1 Net income foss) per books 381,400 7 Income recorded on books this year 2 Federal income tax per books not included on this retum (itemizel: 3 Excess of capital losses over capital gains Tax-exempt interest S 4 Income subject to tax not recorded on books this year itemize Deductions on this return nol charged Expenses recorded on books this year not against book income this year itemize deducted on this return temize a Depreciation a Depreciation $ b Charitable contributions b Charitable contributions $ C Travel and entertainment 3 Add lines 7 and 8 10 Add lines 1 through 5 Income page 1. in 28-ne less line 9 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 1 5 Balance at beginning of year Distributions: a Cash 2 Net income foss) per books 381,400 b Stock 3 Other increases itemize c Property 6 Other decreases temizek 7 Add lines 5 and 6 B Balance at end of year line 4 loss ine 7 Add lines 1, 2, and 3 1,100 240.000 Form 1120 2018