Preparation of tax returns and related schedules can be very helpful in terms of integrating and applying tax concepts. To that end, 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. Please submit a hard copy of your solution with schedules and forms in proper attachment order (stapled or clipped) in class. Check figure: Taxable Income (Line 30 ) =$1,430,250. - On November 17, 2001, Amber Leigh and Andrew Johns formed Dawson, Inc. to sell sporting goods. Pertinent information regarding Dawson, Inc. is summarized as follows: - Dawson Inc.'s business address is 2120 Rebecca Lane, Great Falls, Montana 59401; its telephone number is (575) 5411122; and its email address is dawson (a dawson.com. - The employer identification number is 11-1111111, and the principal business activity code is 451110. - Andrew is president of the company, and Amber is vice president. - Andrew and Amber are full-time employees of Dawson, Inc. Andrew's Social Security number is 123-45-6789, and Amber's Social Security number is 987654321 - Dawson, Inc. is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Dawson, Inc. uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. - Dawson, Inc.'s income statement for 202X is shown on page 2 . - Dawson, Inc.'s balance sheet is as follows: The following additional information is found in the tax working papers: - Dividends were from Hager Corporation, a less-than-20\%-owned domestic corporation. - Other income includes key officer life insurance proceeds of $200,000. - The capital gain resulted from the sale of Bulldog Enterprises stock on July 26 . Dawson, Inc. purchased the Bulldog Enterprises stock on 3/2/2011 for $24,000. - The loss due to worthlessness of stock was due to the bankruptcy of BUM, Inc. The stock was purchased March 5,2015. - Both stock transactions were reported on a 1099-B showing basis, but Dawson prefers to report the transactions separately on Form 8949 with Box D checked. - Purchases (for COGS) were $3,380,000. - Retained earnings are unappropriated. - All contributions were paid in cash during the current year to Great Falls University. - State income taxes for the year were $3,000 (included in the state, local, and payroll tax expense). - Actual bad debts for the year were $5,500. - The actual warranty outlay for the year was $7,250. - For tax purposes, depreciation amounted to $950,000. - Dawson, Inc. declared a $345,000 cash dividend during the current year. - During the year, Dawson, Inc. made estimated tax payments of $80,000 each quarter to the IRS. - Officers' compensation is paid equally to Mr. Johns and Ms. Leigh (\$150,000 each). A little guidance for the M-3: For Part I: Enter "No" for 1a and 1b, "Yes" for 1c, "No" for 2b,2c, and 3a. There are no foreign entities for this problem, so you will have numbers on 4a, 11 and 12a only. whether it is permanent or temporary. Column (d) equals columns (a) + (b) + (c) so your book-tax difference should have a sign to make that work mathematically. All amounts in column (a) are entered with a positive sign (including expense accounts), except for excess capital losses over capital gains (Part II line 23 a). Do not put numbers in column (a) unless there is a book-tax difference. The accounts on the income statement that do not have book-tax differences are summed and entered in Part II on line 28: Other items with no differences! Preparation of tax returns and related schedules can be very helpful in terms of integrating and applying tax concepts. To that end, 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. Please submit a hard copy of your solution with schedules and forms in proper attachment order (stapled or clipped) in class. Check figure: Taxable Income (Line 30 ) =$1,430,250. - On November 17, 2001, Amber Leigh and Andrew Johns formed Dawson, Inc. to sell sporting goods. Pertinent information regarding Dawson, Inc. is summarized as follows: - Dawson Inc.'s business address is 2120 Rebecca Lane, Great Falls, Montana 59401; its telephone number is (575) 5411122; and its email address is dawson (a dawson.com. - The employer identification number is 11-1111111, and the principal business activity code is 451110. - Andrew is president of the company, and Amber is vice president. - Andrew and Amber are full-time employees of Dawson, Inc. Andrew's Social Security number is 123-45-6789, and Amber's Social Security number is 987654321 - Dawson, Inc. is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Dawson, Inc. uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. - Dawson, Inc.'s income statement for 202X is shown on page 2 . - Dawson, Inc.'s balance sheet is as follows: The following additional information is found in the tax working papers: - Dividends were from Hager Corporation, a less-than-20\%-owned domestic corporation. - Other income includes key officer life insurance proceeds of $200,000. - The capital gain resulted from the sale of Bulldog Enterprises stock on July 26 . Dawson, Inc. purchased the Bulldog Enterprises stock on 3/2/2011 for $24,000. - The loss due to worthlessness of stock was due to the bankruptcy of BUM, Inc. The stock was purchased March 5,2015. - Both stock transactions were reported on a 1099-B showing basis, but Dawson prefers to report the transactions separately on Form 8949 with Box D checked. - Purchases (for COGS) were $3,380,000. - Retained earnings are unappropriated. - All contributions were paid in cash during the current year to Great Falls University. - State income taxes for the year were $3,000 (included in the state, local, and payroll tax expense). - Actual bad debts for the year were $5,500. - The actual warranty outlay for the year was $7,250. - For tax purposes, depreciation amounted to $950,000. - Dawson, Inc. declared a $345,000 cash dividend during the current year. - During the year, Dawson, Inc. made estimated tax payments of $80,000 each quarter to the IRS. - Officers' compensation is paid equally to Mr. Johns and Ms. Leigh (\$150,000 each). A little guidance for the M-3: For Part I: Enter "No" for 1a and 1b, "Yes" for 1c, "No" for 2b,2c, and 3a. There are no foreign entities for this problem, so you will have numbers on 4a, 11 and 12a only. whether it is permanent or temporary. Column (d) equals columns (a) + (b) + (c) so your book-tax difference should have a sign to make that work mathematically. All amounts in column (a) are entered with a positive sign (including expense accounts), except for excess capital losses over capital gains (Part II line 23 a). Do not put numbers in column (a) unless there is a book-tax difference. The accounts on the income statement that do not have book-tax differences are summed and entered in Part II on line 28: Other items with no differences