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Please help sove the attached excel workbook. This excel workbook includes the financial statements, and book and tax depreciation schedules for Elite Office Furnitures, Inc.

Please help sove the attached excel workbook.image text in transcribed

This excel workbook includes the financial statements, and book and tax depreciation schedules for Elite Office Furnitures, Inc. Using this information, complete Elite Office Furniture's 2011 Corporate Income Tax Return. Required forms: Form 1120 along with schedules C, D, J, K, M-1 and M-2. Form 4562 (depreciation expense) - Already completed Form 4797 (sale of business property) You do not need to complete Schedule A (Cost of Goods Sold), just use the COGS from the income statement for line 2 of the 1120. Do NOT prepare the tax return with a commercial tax preparation software (e.g. Turbo Tax). Elite Office Furniture Income Statement (Per Books) 12/31/2011 Revenue: Gross Sales Less: Sales Returns and Allowances Cost of Goods Sold Gross Profit Operating Expenses: Compensation of officers Other Salaries and wages Employee benefits Rental expense Interest expense Advertising Key-person life insurance premiums Contributions Depreciation Taxes (state, local and payroll) Repairs and maintenance Accounting and Legal Expenses Total Operating Expenses Net Income from Operations Other income and loss: Dividend Income Interest Income Loss on sale of stock Gain on sale of computer Gain on sale of Warehouse Total Other Inocme Net Income before Taxes Federal Income Tax Expense Net Income after Taxes $1,913,500 $(60,500) (805,800) $1,047,200 $340,000 203,000 16,000 85,200 5,300 32,800 13,000 7,000 40,705 65,000 34,300 14,500 (856,805) 190,395 $12,000 17,600 (23,000) 1,267 22,564 30,431 220,826 (20,000) $200,826 Elite Office Furniture Balance Sheet 12/31/2011 1/1/2011 ASSETS Current Assets: Cash Accounts Receivable Inventory Federal Bonds State Bonds Certificates of Deposit Prepaid Federal Income Tax Stock Investment Total Current Assets Plant, Property and Equipment: Land Buildings Machinery and Equipment Less: Accumulated depreciation Total PPE (net) Other Assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable Other Current Liabilities Total Current Liabilities Mortgages (one year or more) Total Liabilities Common stock (2,250 shares authorized, issued, and outstanding, $100 par) Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 12/31/2011 $56,600 72,960 495,932 26,500 116,500 254,000 251,000 1,273,492 $124,351 53,440 508,932 26,500 116,500 240,000 20,000 227,000 1,316,723 25,500 150,000 163,900 (77,491) 261,909 25,500 195,000 285,900 (98,365) 408,035 7,240 7,240 $1,542,641 $1,731,998 $259,600 47,470 307,070 $298,601 16,000 314,601 120,000 427,070 131,000 445,601 225,000 890,571 1,115,571 225,000 1,061,397 1,286,397 $1,542,641 $1,731,998 Elite Office Furniture Statement of Retained Earnings 12/31/2011 Beginning Retained Earnings Net Income for the year Dividends Paid during the year Ending Retained Earnings $890,571 200,826 (30,000) $1,061,397 Elite Office Furniture Year Ended 12/31/2011 Additional Information 1) Elite Office Furniture began business on February 2, 2008, as a furniture retailer. Elite is organized as a C Corporation owed by George Fields (50% owner) and Rex Huxhold (50% owner). The business address is 22400 Grand Avenue, Omaha, NE 68127. Employer Identification number is 43-2933345; principal business activity code is 423910. 2) George is the president of the corporation and Rex is the vice president. They both devote 100% of the time to the business and each receive a salary of $170,000/year. George's SS # is 953-50-2292; and Rex's SS # is 495-30-4232. 3) Elite Office Furniture is an accrual method, calendar year taxpayer. Inventories are determined using the lower of cost or market method. Elite uses SL depreciation for book purposes, and MACRS for tax (see attached Book and Tax Depreciation schedules). They have no carryovers from prior tax years. 4) Interest expense relates to mortgages on the warehouse and office building. 5) Key-person LI Premiums are for term life insurance policies on the lives of George and Rex. Elite Office Furniture is the designated beneficiary. 6) Contributions were all made in cash to qualified domestic charities. 7) Dividend income is from stock investments in less-than-20%-owned U.S. corporations. 8) Interest income includes $4,400 from state bonds; $1,200 from federal bonds; and $12,000 from a bank certificate of deposit. 9) Elite Office Furniture sold 100 shares of XYZ corp stock for $5,000 on July 5, 2010. They had purchased the stock on May 1, 2008 for $28,000. 10) Computer #1 was sold on April 10, 2011 for $12,000. 11) Warehouse #1 was sold on June 2, 2011 for $50,000. 12) Elite Office Furniture made timely estimated federal tax payments totalling $20,000. 13) Elite Office Furniture distributed a cash dividend of $30,000 on December 15, 2011. Elite Office Furniture Book Depreciation Expense 12/31/2011 Property Ford Pickup Chevy Pickup Office Furn & Equipment 2011 Equipment Computer #1 (sold 4/10/11) Computer #2 Computer #3 Printer #1 Printer #2 Warehouse #1 (sold 6/2/11) Warehouse #2 Building Less: Computer #1 Warehouse #1 Total Date Acquired Cost Method 2008 Depreciation Life 2009 Depreciation 2010 Depreciation 2011 Depreciation Accum Deprec 2011 Book Value 3/1/2008 7/22/2009 $14,500 $18,400 SL SL 5 5 2,417 2,900 1,533 2,900 3,680 2,900 3,680 11,117 8,893 $3,383 $9,507 2/16/2008 7/1/2011 2/5/2008 7/1/2008 4/8/2010 2/5/2008 3/1/2010 1/20/2008 3/25/2011 2/10/2008 $60,000 $150,000 $28,000 $17,000 $22,000 $1,200 $2,800 $30,000 $75,000 $120,000 $538,900 SL SL SL SL SL SL SL SL SL SL 7 7 5 5 5 5 5 39 39 39 7,143 8,571 8,571 4,667 1,700 5,600 3,400 200 240 705 769 5,600 3,400 3,300 240 467 769 2,564 19,395 3,077 26,091 3,077 32,004 8,571 10,714 1,400 3,400 4,400 240 560 321 1,442 3,077 40,705 32,857 10,714 17,267 11,900 7,700 920 1,027 2,564 1,442 11,795 118,196 $27,143 $139,286 $10,733 $5,100 $14,300 $280 $1,773 $27,436 $73,558 $108,205 420,704 (17,267) (2,564) $98,365 10,733 27,436 $382,535 $28,000 $30,000 $480,900 Elite Office Furniture Tax Depreciation Expense 12/31/2011 Property Ford Pickup Chevy Pickup Office Furn & Equipment 2011 Equipment Computer #1 (sold 4/10/11) Computer #2 Computer #3 Printer #1 Printer #2 Warehouse #1 (sold 6/2/11) Warehouse #2 Building Date Acquired Cost Method Life 2008 Prior Yrs Depreciation 2009 2010 3/1/2008 7/22/2009 $14,500 18,400 MACRS MACRS 5 5 2,960 4,800 3,060 2,850 4,900 2/16/2008 7/1/2011 2/5/2008 7/1/2008 4/8/2010 2/5/2008 3/1/2010 1/20/2008 3/25/2011 2/10/2008 60,000 150,000 28,000 17,000 22,000 1,200 2,800 30,000 75,000 120,000 538,900 MACRS MACRS MACRS MACRS MACRS MACRS MACRS MACRS MACRS MACRS 7 7 5 5 5 5 5 39 39 39 8,574 14,694 Sec 179 2011 10,494 8,960 5,440 240 384 738 769 5,376 3,264 4,400 230 560 769 2,696 24,209 3,077 41,184 3,077 35,920 Total Assumptions: Assumptions: ` 1) NO BONUS DEPRECIATION WAS TAKEN IN PRIOR YEARS. Computer #1 2) NO SECTION 179 DEDUCTION WAS TAKEN IN PRIOR YEARS. 3) TAXPAYER DOES WANT TO TAKE SECTION 179 FOR 2011. Warehouse #1 4) LIGHT TRUCK DEPRCIATION LIMITS ARE AS FOLLOWS (2008 & 2009 ): 2008 2009 Year One 2,960 3,060 Year Two 4,800 4,900 Year Three 2,850 2,950 Year Four and Beyond 1,670 1,775 Sales of Assets: Sales Price 12,000 50,000 Accum Deprec Adjusted Basis 1,670 2,950 150,000 5,600 3,400 Depreciation 2011 150,000 178,714 Basis 6,451 Gain/(Loss) 5,549 27,371 28,178 22,629 $12,280 10,910 $2,220 7,490 7,494 1,613 1,958 7,040 138 896 353 1,525 3,077 28,714 41,256 150,000 21,549 14,062 11,440 993 1,456 2,629 1,525 11,927 280,027 18,744 6,451 2,938 10,560 207 1,344 27,371 73,475 108,073 258,873

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