SageGreen Computer Corporation

Income Statement

For the Year Ended December $31$

Gross Sales $$32,000,000\mathrm{.}00$

Cost of Goods Sold $20,360,000\mathrm{.}00$

Gross Profit $11,640,000\mathrm{.}00$

Other Income:

Dividends $65,000\mathrm{.}00$

Interest $20,000\mathrm{.}00$

Tax$-$Exempt Interest $6,000\mathrm{.}00$

Capital Loss $(22,000\mathrm{.}00)$

Total Income $11,709,000\mathrm{.}00$

Expenses:

Salaries and Wages $800,000\mathrm{.}00$

Charitable Contributions $40,000\mathrm{.}00$

Meals $54,000\mathrm{.}00$

Total Expenses $894,000\mathrm{.}00$

Net Income Per Books $$10,815,000\mathrm{.}00$

Part One: Tax Form: Preparation of Page One of Form $1120$

$1.$ Meals are subject to $50\%$ limitation$.$

$2.$ Tax exempt interest of $$6,000$ is earned from Arizona state bonds.

$3.$ Capital stock transactions:

a$.4,000$ shares of Tech Inc. stock purchased February $1$ for $$100,000,$ sold April $1$ for $$113,000$

b$.2,000$ shares of WiresNThings stock purchased June $1$ for $$50,000,$ sold September $1$ for $$55,000$

c$.3,000$ shares of stock purchased April $1$ for $$140,000,$ sold September $1$ for $$100,000$

Cost of Goods Sold notes:

Beginning inventory $$0$

Purchases during the year $$17,000,000$

Cost of labor $$3,000,000$

Other costs $($depreciation$)$ $$360,000$

Ending inventory $$0$

Ending Cash Balance will equal Ending Retained Earnings Balance.