Please explain all calculations if at all possible

Information for return Banner, Inc. (a C corporation) is located at 90 Fifth Avenue, New York City, NY, 10001. The corporation uses the calendar year and accrual basis for both book and tax purposes. It is engaged in the sale of personal protective and defensive equipment. Its employer identification number (EIN) is 12-3456789. The company was incorporated on January 1, 1999 and began business on April 1, 1999. Banner, Inc. made the following estimated tax payments for 2020: April 15, 2020 June 15, 2020 September 15, 2020 December 15, 2020 Total $850,000 850,000 850,000 850,000 $3,400.000 Taxable income in 2019 was $10 million and the 2019 tax was $ 2.1 million. The corporation earned its 2020 taxable income evenly throughout the year. Therefore, it does not use the annualization or seasonal methods. 1 Inventory and Cost of Goods Sold: The corporation uses the periodic inventory method and prices its inventory using the lower of cost or market. Only beginning inventory, ending inventory, and purchases should be reflected on the appropriate form. No other costs or expenses are allocated to cost of goods sold. The corporation is exempt from the uniform capitalization (UNICAP) rules because average gross income for the previous three years was less than $10 million. The following information should also be included on the applicable form: Line 9 (a) Check (ii) (b),(c), & (d) Not applicable (e) & (f) No Compensation of Officers: Officer Title % Time Devoted to Business 100 Diana Banner Peter Bruce Wayne Prince President Vice President Treasurer % of Common Stock Owned 50 25 25 Amount of Compensation $ 300,000 200,000 100,000 100 100 Bad Debts: For tax purposes, the corporation uses the direct write-off method of deducting bad debts. For book purposes, the corporation uses an allowance for doubtful accounts. During 2020, the corporation charged $120,000 to the allowance account for actual write-offs during 2020. Capital Gains and Losses: The corporation sold 250 shares of Saluki Corp. common stock on July 8, 2020 for $500,000. The corporation acquired the stock on September 9, 2019 for $200,000. The corporation also sold 60 shares of Dawg Corp common stock on June 19, 2020 for $95,000. The corporation acquired this stock on July 1, 2010 for $120,000. These transactions were not reported to the corporation on Form 1099-B. 2 Fixed Assets and Depreciation: Fixed Asset Listing: Asset Building Equipment 1 Equipment 2 Equipment 3 Trucks Equipment 4 Placed in Service Date 1/3/2010 1/2/2014 1/2/2016 2/21/2018 3/14/2019 2/9/2020 Cost 55,000,000 25,000,000 30,000,000 12,000,000 1,500,000 14,000,000 Book Depreciation: The corporation uses straight-line deprecation over the useful lives of the assets as follows: . . Building: 50 years; Equipment: ten years; Trucks: five years. . The corporation takes a half-year's depreciation in the year of acquisition and the year of disposition and assumes no salvage value. The book financial statements reflect these calculations. Tax Depreciation: All assets are MACRS property as follows: Building: 39-year non-residential real property. Equipment: seven-year property. Trucks are not listed property and are not subject to the limitation on luxury automobiles. . The corporation also uses the half-year convention for tax purposes. The corporation did not make the expensing election under Sec. 179 or take bonus depreciation on any property acquired before 2020. Accumulated depreciation through December 31, 2019 on the properties is as follows: Asset Building Equipment 1 Equipment 2 Equipment 3 Trucks Equipment 4 Accumulated Depreciation $ 14,045,350 $ 21,652,500 $ 20,628,000 $ 4,653,600 $ 300,000 $ 0 On October 2, 2020 the corporation sold Equipment 1 for $6,000,000. The corporation had no Sec. 1231 losses from prior years. In a separate transaction on February 9, 2020 the corporation acquired and placed in service Equipment 4. (Same Equipment 4 as reported above with other depreciable assets.) Assume these transactions do not qualify as like-kind exchange. You may use published IRS depreciation tables to compute the 2020 depreciation or the tax software. The balance sheet is follows: January 1, 2020 Debit Credit December 31, 2020 Debit Credit Account 13,621,000 8,300,000 26,845,250 11,300,000 415,000 445,000 22,000,000 500,000 120,000 23,500,000 180,000 120,000 70,000 70,000 12,000,000 55,000,000 12,000,000 55,000,000 Cash Accounts Receivable Allowance for doubtful accounts Inventory Investment in corporate stock Investment in municpal bonds Cash surrender value of insurance policy Land Buildings Accumulated Depreciation - Buildings Equipment Accumulated Depreciation - Equipment Trucks Accumulated Depreciation - Trucks Accounts payable Notes payable (short-term) Accrued payroll taxes 10,450,000 11,550,000 67,000,000 56,000,000 26,050,000 17,200,000 1,500,000 1,500,000 150,000 3,100,000 5,000,000 55,000 450,000 3,200,000 0 64,000 January 1, 2020 Debit Credit December 31, 2020 Debit Credit Account 13,621,000 8,300,000 26,845,250 11,300,000 415,000 445,000 22,000,000 500,000 120,000 23,500,000 180,000 120,000 70,000 70,000 12,000,000 55,000,000 12,000,000 55,000,000 10,450,000 11,550,000 67,000,000 56,000,000 Cash Accounts Receivable Allowance for doubtful accounts Inventory Investment in corporate stock Investment in municpal bonds Cash surrender value of insurance policy Land Buildings Accumulated Depreciation - Buildings Equipment Accumulated Depreciation - Equipment Trucks Accumulated Depreciation - Trucks Accounts payable Notes payable (short-term) Accrued payroll taxes Accrued state income taxes federal income taxes payable Bonds payable (long-term) Net deferred tax liability Capital stock - common Retained earnings -unappropriated Total 26,050,000 17,200,000 1,500,000 1,500,000 150,000 450,000 3,100,000 3,200,000 5,000,000 0 55,000 64,000 432,500 574,366 98,000 150,000 6,000,000 6,000,000 8,360,500 9,964,109 65,000,000 65,000,000 55,000,000 71,917,775 $180,111,000 $180,111,000 $186,515,250 $186,515,250 The GAAP income statement for 2020 is as follows: $84,500,000 (4,300,000) $80,200,000 $22,000,000 36,000,000 (23,500,000) ($34,500,000) $45,700,000 Sales Returns Net sales Beginning inventory Purchases Ending Inventory Cost of goods sold Gross profit Expenses: Depreciation Repairs Insurance Net premium-Officers' life insurance Officers' compensation Other salaries Utilities Advertising Legal fees Accounting fees Charitable contributions Payroll taxes Interest Expense Bad debt expense Total expenses Loss on Sale of equipment Interest on municipal bonds Gain/(Loss) on stock sales $7,550,000 350,000 2,600,000 100,000 600,000 880,000 4,100,000 75,000 850,000 650,000 1,000,000 108,040 300,000 150,000 ($19,313,040) ($4,000,000) 55,000 275,000 650,000 1,000,000 108,040 300,000 150,000 Legal fees Accounting fees Charitable contributions Payroll taxes Interest Expense Bad debt expense Total expenses Loss on Sale of equipment Interest on municipal bonds Gain/(Loss) on stock sales Dividend income Net income before income taxes Federal income tax expense State income tax expense Net income ($19,313,040) ($4,000,000) 55,000 275,000 84,000 $22,800,960 ($4,908,818) ($574,366) $17,317,775 Other Information: . . You do not need to complete schedule K of the income tax return. The corporation received dividends from taxable, domestic corporations, the stock of which Banner owns less than 20%. The charitable contributions were made in cash to the Carbondale Women's Center. The corporation has a $55,000 capital loss carryover from 2019. The corporation paid $400,000 in cash dividends to its shareholders during the year and charged the payment directly to retained earnings. The state income tax provided is the exact amount of such taxes incurred during the year. Required: 1) Prepare the 2020 corporate tax return for Banner, Inc. along with any necessary supporting schedules, forms, etc. Prepare the Schedule M-3 but you may omit Schedule B and Form 8916-A. Complete the Schedule M-1 within the tax software. Information for return Banner, Inc. (a C corporation) is located at 90 Fifth Avenue, New York City, NY, 10001. The corporation uses the calendar year and accrual basis for both book and tax purposes. It is engaged in the sale of personal protective and defensive equipment. Its employer identification number (EIN) is 12-3456789. The company was incorporated on January 1, 1999 and began business on April 1, 1999. Banner, Inc. made the following estimated tax payments for 2020: April 15, 2020 June 15, 2020 September 15, 2020 December 15, 2020 Total $850,000 850,000 850,000 850,000 $3,400.000 Taxable income in 2019 was $10 million and the 2019 tax was $ 2.1 million. The corporation earned its 2020 taxable income evenly throughout the year. Therefore, it does not use the annualization or seasonal methods. 1 Inventory and Cost of Goods Sold: The corporation uses the periodic inventory method and prices its inventory using the lower of cost or market. Only beginning inventory, ending inventory, and purchases should be reflected on the appropriate form. No other costs or expenses are allocated to cost of goods sold. The corporation is exempt from the uniform capitalization (UNICAP) rules because average gross income for the previous three years was less than $10 million. The following information should also be included on the applicable form: Line 9 (a) Check (ii) (b),(c), & (d) Not applicable (e) & (f) No Compensation of Officers: Officer Title % Time Devoted to Business 100 Diana Banner Peter Bruce Wayne Prince President Vice President Treasurer % of Common Stock Owned 50 25 25 Amount of Compensation $ 300,000 200,000 100,000 100 100 Bad Debts: For tax purposes, the corporation uses the direct write-off method of deducting bad debts. For book purposes, the corporation uses an allowance for doubtful accounts. During 2020, the corporation charged $120,000 to the allowance account for actual write-offs during 2020. Capital Gains and Losses: The corporation sold 250 shares of Saluki Corp. common stock on July 8, 2020 for $500,000. The corporation acquired the stock on September 9, 2019 for $200,000. The corporation also sold 60 shares of Dawg Corp common stock on June 19, 2020 for $95,000. The corporation acquired this stock on July 1, 2010 for $120,000. These transactions were not reported to the corporation on Form 1099-B. 2 Fixed Assets and Depreciation: Fixed Asset Listing: Asset Building Equipment 1 Equipment 2 Equipment 3 Trucks Equipment 4 Placed in Service Date 1/3/2010 1/2/2014 1/2/2016 2/21/2018 3/14/2019 2/9/2020 Cost 55,000,000 25,000,000 30,000,000 12,000,000 1,500,000 14,000,000 Book Depreciation: The corporation uses straight-line deprecation over the useful lives of the assets as follows: . . Building: 50 years; Equipment: ten years; Trucks: five years. . The corporation takes a half-year's depreciation in the year of acquisition and the year of disposition and assumes no salvage value. The book financial statements reflect these calculations. Tax Depreciation: All assets are MACRS property as follows: Building: 39-year non-residential real property. Equipment: seven-year property. Trucks are not listed property and are not subject to the limitation on luxury automobiles. . The corporation also uses the half-year convention for tax purposes. The corporation did not make the expensing election under Sec. 179 or take bonus depreciation on any property acquired before 2020. Accumulated depreciation through December 31, 2019 on the properties is as follows: Asset Building Equipment 1 Equipment 2 Equipment 3 Trucks Equipment 4 Accumulated Depreciation $ 14,045,350 $ 21,652,500 $ 20,628,000 $ 4,653,600 $ 300,000 $ 0 On October 2, 2020 the corporation sold Equipment 1 for $6,000,000. The corporation had no Sec. 1231 losses from prior years. In a separate transaction on February 9, 2020 the corporation acquired and placed in service Equipment 4. (Same Equipment 4 as reported above with other depreciable assets.) Assume these transactions do not qualify as like-kind exchange. You may use published IRS depreciation tables to compute the 2020 depreciation or the tax software. The balance sheet is follows: January 1, 2020 Debit Credit December 31, 2020 Debit Credit Account 13,621,000 8,300,000 26,845,250 11,300,000 415,000 445,000 22,000,000 500,000 120,000 23,500,000 180,000 120,000 70,000 70,000 12,000,000 55,000,000 12,000,000 55,000,000 Cash Accounts Receivable Allowance for doubtful accounts Inventory Investment in corporate stock Investment in municpal bonds Cash surrender value of insurance policy Land Buildings Accumulated Depreciation - Buildings Equipment Accumulated Depreciation - Equipment Trucks Accumulated Depreciation - Trucks Accounts payable Notes payable (short-term) Accrued payroll taxes 10,450,000 11,550,000 67,000,000 56,000,000 26,050,000 17,200,000 1,500,000 1,500,000 150,000 3,100,000 5,000,000 55,000 450,000 3,200,000 0 64,000 January 1, 2020 Debit Credit December 31, 2020 Debit Credit Account 13,621,000 8,300,000 26,845,250 11,300,000 415,000 445,000 22,000,000 500,000 120,000 23,500,000 180,000 120,000 70,000 70,000 12,000,000 55,000,000 12,000,000 55,000,000 10,450,000 11,550,000 67,000,000 56,000,000 Cash Accounts Receivable Allowance for doubtful accounts Inventory Investment in corporate stock Investment in municpal bonds Cash surrender value of insurance policy Land Buildings Accumulated Depreciation - Buildings Equipment Accumulated Depreciation - Equipment Trucks Accumulated Depreciation - Trucks Accounts payable Notes payable (short-term) Accrued payroll taxes Accrued state income taxes federal income taxes payable Bonds payable (long-term) Net deferred tax liability Capital stock - common Retained earnings -unappropriated Total 26,050,000 17,200,000 1,500,000 1,500,000 150,000 450,000 3,100,000 3,200,000 5,000,000 0 55,000 64,000 432,500 574,366 98,000 150,000 6,000,000 6,000,000 8,360,500 9,964,109 65,000,000 65,000,000 55,000,000 71,917,775 $180,111,000 $180,111,000 $186,515,250 $186,515,250 The GAAP income statement for 2020 is as follows: $84,500,000 (4,300,000) $80,200,000 $22,000,000 36,000,000 (23,500,000) ($34,500,000) $45,700,000 Sales Returns Net sales Beginning inventory Purchases Ending Inventory Cost of goods sold Gross profit Expenses: Depreciation Repairs Insurance Net premium-Officers' life insurance Officers' compensation Other salaries Utilities Advertising Legal fees Accounting fees Charitable contributions Payroll taxes Interest Expense Bad debt expense Total expenses Loss on Sale of equipment Interest on municipal bonds Gain/(Loss) on stock sales $7,550,000 350,000 2,600,000 100,000 600,000 880,000 4,100,000 75,000 850,000 650,000 1,000,000 108,040 300,000 150,000 ($19,313,040) ($4,000,000) 55,000 275,000 650,000 1,000,000 108,040 300,000 150,000 Legal fees Accounting fees Charitable contributions Payroll taxes Interest Expense Bad debt expense Total expenses Loss on Sale of equipment Interest on municipal bonds Gain/(Loss) on stock sales Dividend income Net income before income taxes Federal income tax expense State income tax expense Net income ($19,313,040) ($4,000,000) 55,000 275,000 84,000 $22,800,960 ($4,908,818) ($574,366) $17,317,775 Other Information: . . You do not need to complete schedule K of the income tax return. The corporation received dividends from taxable, domestic corporations, the stock of which Banner owns less than 20%. The charitable contributions were made in cash to the Carbondale Women's Center. The corporation has a $55,000 capital loss carryover from 2019. The corporation paid $400,000 in cash dividends to its shareholders during the year and charged the payment directly to retained earnings. The state income tax provided is the exact amount of such taxes incurred during the year. Required: 1) Prepare the 2020 corporate tax return for Banner, Inc. along with any necessary supporting schedules, forms, etc. Prepare the Schedule M-3 but you may omit Schedule B and Form 8916-A. Complete the Schedule M-1 within the tax software