Please prepare the appropriate tax forms and schedules for the problem below. (1120, Schedule C, J, K, L, M2, & M3) You may use the software provided with your textbook or prepare the forms by hand. Instructions for all forms and schedules may be obtained from the IRS website. A hard copy of your solution with schedules and forms in proper attachment order (stapled or clipped) is to be submitted. Check figure: Taxable Income (line 30) = $637,700. On November 17, 2005, Leigh Sheridan and Nicolette Rook opened Heaths Sweets Candy Shop, and incorporated as the shop as Heath, Inc. Their first store was very successful, and they have subsequently opened a chain of Heaths Sweets Candy Shops. As they have grown, they have issued stock to other investors. Currently, Leigh owns 40% of the shares and Nicolette owns 40% of the shares, with the remaining 20% owned by outside investors. Heath Inc.s business address is 2120 Candy Cane Lane, Great Falls, Montana 59401; its telephone number is (575) 541-1122; and its email address is Heath@sweetcandyshop.com. The employer identification number is 11-1111111, and the principal business activity is Confectionery & nut stores and principal business code is 445292. Leigh is president of the company, and Nicolette is vice president. Leigh and Nicolette are full-time employees of Heath, Inc. Leighs Social Security number is 123-45-6789, and Nicolettes Social Security number is 987-65-4321. Heath, Inc. is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Heath, Inc. uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. Heath, Inc.s income statement for 2019 is shown on page 2. Heath, Inc.s balance sheet is as follows:

PLEASE FILL OUT FORMS 1120 SCHEDULE C, J, K, L AND FORMS M1 & M2. ANY QUESTIONS OR CONCERNS PLEASE COMMENT BELOW AND I WILL GET BACK TO YOU WITHIN THE HOUR! THANK YOU

Please prepare the appropriate tax forms and schedules for the problem below. You may use the software provided with your textbook or prepare the forms by hand. Instructions for all forms and schedules may be obtained from the IRS website. A hard copy of your solution with schedules and forms in proper attachment order (stapled or clipped) is to be submitted. Check figure: Taxable Income (line 30) = $637,700. . On November 17, 2005, Leigh Sheridan and Nicolette Rook opened Heath's Sweets Candy Shop, and incorporated as the shop as Heath, Inc. Their first store was very successful, and they have subsequently opened a chain of Heath's Sweets Candy Shops. As they have grown, they have issued stock to other investors. Currently, Leigh owns 40% of the shares and Nicolette owns 40% of the shares, with the remaining 20% owned by outside investors. Heath Inc.'s business address is 2120 Candy Cane Lane, Great Falls, Montana 59401; its telephone number is (575) 541-1122; and its email address is Heath@sweetcandyshop.com. The employer identification number is 11-1111111, and the principal business activity is Confectionery & nut stores and principal business code is 445292. Leigh is president of the company, and Nicolette is vice president. Leigh and Nicolette are full-time employees of Heath, Inc. Leigh's Social Security number is 123-45-6789, and Nicolette's Social Security number is 987-65-4321. Heath, Inc. is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Heath, Inc. uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. Heath, Inc.'s income statement for 2019 is shown on page 2. Heath, Inc.'s balance sheet is as follows: Cash Accounts receivable Inventories Stock investment State of Montana bonds Certificates of Deposit Buildings and other depreciable assets | Accumulated depreciation Land Other assets Total assets Accounts payable Other current liabilities Mortgages Capital stock Retained Earnings Total liabilities and equity January 1, 2019 1,200,000 2.062.500 2,750,000 2,125,000 375,000 400,000 1,805,000 (727,000) 812,500 140,000 10,943,000 2,284,000 175,000 4,625,000 2.500.000 1,359,000 10,943,000 December 31, 2019 1,250,000 2,247,000 3,030,000 2,075,000 375,000 400,000 1,805,000 (1,602,000) 812,500 178,500 10,571,000 1,970,780 155,000 4,575,000 2.500,000 1,370,220 10,571,000 Income Statement 6,100,000 (70,000) 6,030,000 (3,100,000) 2,930,000 18,000 Income Gross sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends Interest income State of Montana bonds Certificates of deposit Gain on sales of stock Loss due to stock worthlessness Other income Total income 15,000 27,500 42,500 8,000 (27,000) 222,830 3,194,330 805,000 101,830 4,000 22,000 Expenses Salaries and wages Taxes (state, local, and payroll) Interest expense Loan to purchase state bonds Funds borrowed for working capital Warranty expense Depreciation* Charitable contributions Premiums on key-man life insurance policies Bad debt expense Other expenses Total expenses Net income before taxes Federal income tax Net income per books 26,000 9,300 875,000 40,000 10,000 9,800 483,000 (2,359,930) 834,400 (213,544) 620.856 *You are not provided enough detailed information to complete a Form 4562 (depreciation schedule). If you solve this problem using H&R Block At Home, you will have to override the depreciation expense by entering the amount of depreciation on line 20 of Form 1120. The following additional information is found in the tax working papers: Dividends were from Hager Corporation, a less-than-20%-owned domestic corporation. The stock sold for a gain was from David, Inc. Heath purchased the stock on 6/2/2013 for $32,000. The stock was sold on 12/20. The worthless stock was purchased on 3/20/2008 for $27,000 and was due to the bankruptcy of Dudd, Inc. Other income includes key officer life insurance proceeds of $150,000. Included in the state, local and payroll tax expense total of $101,830 is $40,250 of state income tax and $61,580 of payroll tax. . For tax purposes, depreciation equals $930,000. All contributions were paid in cash during the current year to Great Falls University. Actual bad debts for the year were $10,500. Heath, Inc. declared a $609,636 cash dividend during the current year. . During 2019, Heath, Inc. made estimated tax payments of $40,000 each quarter to the IRS. Salaries and wages includes $200,000 paid to Leigh and Nicolette ($100,000 each). Please prepare the appropriate tax forms and schedules for the problem below. You may use the software provided with your textbook or prepare the forms by hand. Instructions for all forms and schedules may be obtained from the IRS website. A hard copy of your solution with schedules and forms in proper attachment order (stapled or clipped) is to be submitted. Check figure: Taxable Income (line 30) = $637,700. . On November 17, 2005, Leigh Sheridan and Nicolette Rook opened Heath's Sweets Candy Shop, and incorporated as the shop as Heath, Inc. Their first store was very successful, and they have subsequently opened a chain of Heath's Sweets Candy Shops. As they have grown, they have issued stock to other investors. Currently, Leigh owns 40% of the shares and Nicolette owns 40% of the shares, with the remaining 20% owned by outside investors. Heath Inc.'s business address is 2120 Candy Cane Lane, Great Falls, Montana 59401; its telephone number is (575) 541-1122; and its email address is Heath@sweetcandyshop.com. The employer identification number is 11-1111111, and the principal business activity is Confectionery & nut stores and principal business code is 445292. Leigh is president of the company, and Nicolette is vice president. Leigh and Nicolette are full-time employees of Heath, Inc. Leigh's Social Security number is 123-45-6789, and Nicolette's Social Security number is 987-65-4321. Heath, Inc. is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Heath, Inc. uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. Heath, Inc.'s income statement for 2019 is shown on page 2. Heath, Inc.'s balance sheet is as follows: Cash Accounts receivable Inventories Stock investment State of Montana bonds Certificates of Deposit Buildings and other depreciable assets | Accumulated depreciation Land Other assets Total assets Accounts payable Other current liabilities Mortgages Capital stock Retained Earnings Total liabilities and equity January 1, 2019 1,200,000 2.062.500 2,750,000 2,125,000 375,000 400,000 1,805,000 (727,000) 812,500 140,000 10,943,000 2,284,000 175,000 4,625,000 2.500.000 1,359,000 10,943,000 December 31, 2019 1,250,000 2,247,000 3,030,000 2,075,000 375,000 400,000 1,805,000 (1,602,000) 812,500 178,500 10,571,000 1,970,780 155,000 4,575,000 2.500,000 1,370,220 10,571,000 Income Statement 6,100,000 (70,000) 6,030,000 (3,100,000) 2,930,000 18,000 Income Gross sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends Interest income State of Montana bonds Certificates of deposit Gain on sales of stock Loss due to stock worthlessness Other income Total income 15,000 27,500 42,500 8,000 (27,000) 222,830 3,194,330 805,000 101,830 4,000 22,000 Expenses Salaries and wages Taxes (state, local, and payroll) Interest expense Loan to purchase state bonds Funds borrowed for working capital Warranty expense Depreciation* Charitable contributions Premiums on key-man life insurance policies Bad debt expense Other expenses Total expenses Net income before taxes Federal income tax Net income per books 26,000 9,300 875,000 40,000 10,000 9,800 483,000 (2,359,930) 834,400 (213,544) 620.856 *You are not provided enough detailed information to complete a Form 4562 (depreciation schedule). If you solve this problem using H&R Block At Home, you will have to override the depreciation expense by entering the amount of depreciation on line 20 of Form 1120. The following additional information is found in the tax working papers: Dividends were from Hager Corporation, a less-than-20%-owned domestic corporation. The stock sold for a gain was from David, Inc. Heath purchased the stock on 6/2/2013 for $32,000. The stock was sold on 12/20. The worthless stock was purchased on 3/20/2008 for $27,000 and was due to the bankruptcy of Dudd, Inc. Other income includes key officer life insurance proceeds of $150,000. Included in the state, local and payroll tax expense total of $101,830 is $40,250 of state income tax and $61,580 of payroll tax. . For tax purposes, depreciation equals $930,000. All contributions were paid in cash during the current year to Great Falls University. Actual bad debts for the year were $10,500. Heath, Inc. declared a $609,636 cash dividend during the current year. . During 2019, Heath, Inc. made estimated tax payments of $40,000 each quarter to the IRS. Salaries and wages includes $200,000 paid to Leigh and Nicolette ($100,000 each)