Prepare a2020 1120 tax form (schedule D - 6 pages) with the information provided.

Tax laws for 2020

Facts 6. 58,368 Interest expense: a. From the mortgage on Razorback Sports' building From loan used to purchase City of Fayetteville bonds The business expense limit does not apply to Razorback Sports 1,152 Razorback Sports Inc. was formed in 2016 by Austin Williams and Tyler Jacobs. Austin and Tyler officially incorporated their store on March 12, 2016. Razorback Sports sells all kinds of sports-related products including equipment, uniforms and athletic shoes. Austin owns 60% of the outstanding common stock of Razorback Sports and Tyler owns the remaining 40%. 7. Wages to non-officers are 408,000 8. Pension expense is the same for both book and tax purposes. Miscellaneous expenses include premiums paid on term life insurance policies on the lives of Austin and Tyler (Razorback Sports is the beneficiary of the life insurance policies). Razorback Sports is located at 123 College Ave, Fayetteville, AR 72701. Its employer identification number is 29-5748859 and its business activity code is 451110. Razorback Sports uses the accrual method of accounting and has a calendar year-end. 1,920 10. Miscellaneous expenses include a fine issued by the City of Fayetteville for violating COVID-19 rules 1,747 The officers of Razorback Sports and their Social Security numbers are: 11. The corporation uses MACRS depreciation for tax purposes. The corporation purchased all of its equipment on July 1, 2018. Razorback Sports took the maximum amount of $179 depreciation (no bonus depreciation). The equipment is all Z year property. Cost of the equipment a. 1,440,000 Name Austin Williams Tyler Jacobs Kellie Francis Jason Roberts Title SS number CEO/President 123-45-6789 Executive VP 789-12-3456 Operations VP 321-54-9876 Secretary 987-65-4321 14,400 13. 77,760 14. 38,400 A trial balance for the corporation is attached. Additional information is presented +-below. 12. Accounts receivable written off by Razorback Sports during the year were On December 1, 2020 Razorback Sports paid a dividend to its shareholders of Razorback Sports made four equal estimated tax payments of a. If it has overpaid its federal tax liability, Razorback would like to receive a refund. 15. The corporation paid the following compensation to its officers: Austin Williams Tyler Jacobs Kellie Francis Jason Roberts Amount 2,400 1. 2. Razorback Sports has a capital loss carry over from last year of Interest income: a. From a City of Fayetteville bond that was used to fund new police station b. From a U.S. Treasury bond c. From a money market account 331,200 273,600 139,200 124,800 3,288 5,184 5,928 16. All officers devote 100% of their time to the business and all officers are U.S. citizens. 17. Neither Kellie nor Jason owns any stock in Razorback Sports. 3. [ Razorback Sports sold equipment. a. Selling price b. Original purchase price c. Total book depreciation on the equipment d. Total tax depreciation on the equipment 8,544 11,808 7,056 6,432 4. 5. Razorback Sports' dividend income came from Cardinal Inc. Razorback Sports owned 25,000 shares of the stock in Cardinal at the beginning of the year. This represented 15% of the Cardinal outstanding stock. On July 22, 2020 Razorback Sports sold 2,500 shares of its Cardinal Inc. stock. a. Selling price . Razorback originally purchased these shares on April 24, 2018 c. After the sale, Razorback Sports owned 12.5% of Cardinal Inc. 34,560 23,040 B D E F H Balance Sheet 3283632 36480 3247152 771840 2475312 324576 577056 50832 526224 1536000 2386800 Assets Current assets Cash Account Receivable Allowance for Doubtful Debt Inventory Total current asset Investment Investment in state & local bond Investment in stock Investment in US Govt bond Total investment Property plant & equipment Land Equipment Acc. Depreciation Other assets Total assets 134400 264000 67200 51840 33600 24000 1276800 19200 3360 24000 1680 39264 53760 40320 30720 43200 8160 1649904 465600 2131200 1440000 360000 1080000 240000 6303600 1 Income Statement 2 3 Sale 4 Sale return & allowance 5 Net sale 6 Cost of goods sold 7 Gross profit 8 Expenses: 9 Advertising expense 10 Bad debt expense 11 Charitable contribution 12 Compensation expenses 13 Depreciation expenses 14 Entertainment expenses 15 Maintenance expense 16 Meal expense 17 Miscellaneous expenses 18 Other tax expenses 19 Pension plant expenses 20 Professional service expenses 21 Property tax expense 22 Supplies expenses A 14 Entertainment expenses 15 Maintenance expense 16 Meal expense 17 Miscellaneous expenses 18 Other tax expenses 19 Pension plant expenses 20 Professional service expenses 21 Property tax expense 22 Supplies expenses 23 Operating Income 24 Other income and expenses 25 Interest expenses 26 Dividend 27 Gain from disposal of fixed asset 28 Interest income 29 capital gain 30 Income before income tax 31 Federal income tax expense 32 State income tax expense 33 Net Income Current Liability B D E F G H 3360 465600 2131200 Total investment Property plant & equipment Land Equipment Acc. Depreciation Other assets Total assets 24000 1680 39264 53760 40320 30720 43200 8160 1649904 825408 1440000 360000 1080000 240000 6303600 211200 113280 324480 Current Liability Account Payable Other current liabilities Total current liablities Long term liabilities Other liabilities Mortgage payable Total long term liability Equity Capital stock (common) Retained earning Stock holders equity -59520 11520 3696 14400 11520 807024 240768 57600 508656 176736 1464288 1641024 864000 3474096 4338096 6303600 Facts 6. 58,368 Interest expense: a. From the mortgage on Razorback Sports' building From loan used to purchase City of Fayetteville bonds The business expense limit does not apply to Razorback Sports 1,152 Razorback Sports Inc. was formed in 2016 by Austin Williams and Tyler Jacobs. Austin and Tyler officially incorporated their store on March 12, 2016. Razorback Sports sells all kinds of sports-related products including equipment, uniforms and athletic shoes. Austin owns 60% of the outstanding common stock of Razorback Sports and Tyler owns the remaining 40%. 7. Wages to non-officers are 408,000 8. Pension expense is the same for both book and tax purposes. Miscellaneous expenses include premiums paid on term life insurance policies on the lives of Austin and Tyler (Razorback Sports is the beneficiary of the life insurance policies). Razorback Sports is located at 123 College Ave, Fayetteville, AR 72701. Its employer identification number is 29-5748859 and its business activity code is 451110. Razorback Sports uses the accrual method of accounting and has a calendar year-end. 1,920 10. Miscellaneous expenses include a fine issued by the City of Fayetteville for violating COVID-19 rules 1,747 The officers of Razorback Sports and their Social Security numbers are: 11. The corporation uses MACRS depreciation for tax purposes. The corporation purchased all of its equipment on July 1, 2018. Razorback Sports took the maximum amount of $179 depreciation (no bonus depreciation). The equipment is all Z year property. Cost of the equipment a. 1,440,000 Name Austin Williams Tyler Jacobs Kellie Francis Jason Roberts Title SS number CEO/President 123-45-6789 Executive VP 789-12-3456 Operations VP 321-54-9876 Secretary 987-65-4321 14,400 13. 77,760 14. 38,400 A trial balance for the corporation is attached. Additional information is presented +-below. 12. Accounts receivable written off by Razorback Sports during the year were On December 1, 2020 Razorback Sports paid a dividend to its shareholders of Razorback Sports made four equal estimated tax payments of a. If it has overpaid its federal tax liability, Razorback would like to receive a refund. 15. The corporation paid the following compensation to its officers: Austin Williams Tyler Jacobs Kellie Francis Jason Roberts Amount 2,400 1. 2. Razorback Sports has a capital loss carry over from last year of Interest income: a. From a City of Fayetteville bond that was used to fund new police station b. From a U.S. Treasury bond c. From a money market account 331,200 273,600 139,200 124,800 3,288 5,184 5,928 16. All officers devote 100% of their time to the business and all officers are U.S. citizens. 17. Neither Kellie nor Jason owns any stock in Razorback Sports. 3. [ Razorback Sports sold equipment. a. Selling price b. Original purchase price c. Total book depreciation on the equipment d. Total tax depreciation on the equipment 8,544 11,808 7,056 6,432 4. 5. Razorback Sports' dividend income came from Cardinal Inc. Razorback Sports owned 25,000 shares of the stock in Cardinal at the beginning of the year. This represented 15% of the Cardinal outstanding stock. On July 22, 2020 Razorback Sports sold 2,500 shares of its Cardinal Inc. stock. a. Selling price . Razorback originally purchased these shares on April 24, 2018 c. After the sale, Razorback Sports owned 12.5% of Cardinal Inc. 34,560 23,040 B D E F H Balance Sheet 3283632 36480 3247152 771840 2475312 324576 577056 50832 526224 1536000 2386800 Assets Current assets Cash Account Receivable Allowance for Doubtful Debt Inventory Total current asset Investment Investment in state & local bond Investment in stock Investment in US Govt bond Total investment Property plant & equipment Land Equipment Acc. Depreciation Other assets Total assets 134400 264000 67200 51840 33600 24000 1276800 19200 3360 24000 1680 39264 53760 40320 30720 43200 8160 1649904 465600 2131200 1440000 360000 1080000 240000 6303600 1 Income Statement 2 3 Sale 4 Sale return & allowance 5 Net sale 6 Cost of goods sold 7 Gross profit 8 Expenses: 9 Advertising expense 10 Bad debt expense 11 Charitable contribution 12 Compensation expenses 13 Depreciation expenses 14 Entertainment expenses 15 Maintenance expense 16 Meal expense 17 Miscellaneous expenses 18 Other tax expenses 19 Pension plant expenses 20 Professional service expenses 21 Property tax expense 22 Supplies expenses A 14 Entertainment expenses 15 Maintenance expense 16 Meal expense 17 Miscellaneous expenses 18 Other tax expenses 19 Pension plant expenses 20 Professional service expenses 21 Property tax expense 22 Supplies expenses 23 Operating Income 24 Other income and expenses 25 Interest expenses 26 Dividend 27 Gain from disposal of fixed asset 28 Interest income 29 capital gain 30 Income before income tax 31 Federal income tax expense 32 State income tax expense 33 Net Income Current Liability B D E F G H 3360 465600 2131200 Total investment Property plant & equipment Land Equipment Acc. Depreciation Other assets Total assets 24000 1680 39264 53760 40320 30720 43200 8160 1649904 825408 1440000 360000 1080000 240000 6303600 211200 113280 324480 Current Liability Account Payable Other current liabilities Total current liablities Long term liabilities Other liabilities Mortgage payable Total long term liability Equity Capital stock (common) Retained earning Stock holders equity -59520 11520 3696 14400 11520 807024 240768 57600 508656 176736 1464288 1641024 864000 3474096 4338096 6303600