Tax forms consist of 1120, M-3,SCH D

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. A hard copy of your solution with schedules and forms in proper attachment order (stapled or clipped) is to be submitted in class. Check figure: Taxable Income (line 30) = $1,430,250. On November 17, 2001. Autumn Leigh and Aaron Johns formed Sportico, Inc. to sell sporting goods. Pertinent information regarding Sportico, Inc. is summarized as follows: Sportico Inc.'s business address is 2120 Rebecca Lane. Great Falls, Montana 59401; its telephone number is (575) 541-1122, and its email address is Sportico @Sportico.com. The employer identification number is 11-1111111, and the principal business activity code is 451110. Autumn is president of the company, and Aaron is vice president. Aaron and Autumn are full-time employees of Sportico, Inc. Autumn's Social Security number is 123-45-6789, and Aaron's Social Security number is 987-65-4321. Sportico, Inc. is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Sportico, Inc. uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. . Sportico, Inc.'s income statement for 2018 is shown on page 2. Sportico, Inc.'s balance sheet is as follows: January 1, 2018 1,200,000 2,062,500 2,750,000 1,125,000 375,000 400,000 Cash Accounts receivable Inventories Stock investment State of Montana bonds Certificates of Deposit Prepaid federal tax 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 4,805,000 (727.000) 812,500 140,000 12,943,000 2,284,000 175,000 4,625,000 2,500,000 3,359,000 12,943,000 December 31, 2018 1,750,243 2,247,000 3,030,000 1.075.000 375,000 400,000 3,977 5,305,000 (1,602,000) 812,500 178,500 13,575,220 1,975,000 155,000 4,575,000 2,500,000 4,370,220 13,575,220 The following additional information is found in the tax working papers: Dividends were from Heath 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. Sportico. 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 CLL, Inc. The stock was purchased March 5, 2009. 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 2018 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. Sportico, Inc. declared a $345,000 cash dividend during the current year. . During 2018, Sportico, Inc. made estimated tax payments of $80,000 each quarter to the IRS. Salaries and wages includes $200,000 paid to Mr. Johns and Ms. Leigh ($100.000 each). 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. A hard copy of your solution with schedules and forms in proper attachment order (stapled or clipped) is to be submitted in class. Check figure: Taxable Income (line 30) = $1,430,250. On November 17, 2001. Autumn Leigh and Aaron Johns formed Sportico, Inc. to sell sporting goods. Pertinent information regarding Sportico, Inc. is summarized as follows: Sportico Inc.'s business address is 2120 Rebecca Lane. Great Falls, Montana 59401; its telephone number is (575) 541-1122, and its email address is Sportico @Sportico.com. The employer identification number is 11-1111111, and the principal business activity code is 451110. Autumn is president of the company, and Aaron is vice president. Aaron and Autumn are full-time employees of Sportico, Inc. Autumn's Social Security number is 123-45-6789, and Aaron's Social Security number is 987-65-4321. Sportico, Inc. is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Sportico, Inc. uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. . Sportico, Inc.'s income statement for 2018 is shown on page 2. Sportico, Inc.'s balance sheet is as follows: January 1, 2018 1,200,000 2,062,500 2,750,000 1,125,000 375,000 400,000 Cash Accounts receivable Inventories Stock investment State of Montana bonds Certificates of Deposit Prepaid federal tax 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 4,805,000 (727.000) 812,500 140,000 12,943,000 2,284,000 175,000 4,625,000 2,500,000 3,359,000 12,943,000 December 31, 2018 1,750,243 2,247,000 3,030,000 1.075.000 375,000 400,000 3,977 5,305,000 (1,602,000) 812,500 178,500 13,575,220 1,975,000 155,000 4,575,000 2,500,000 4,370,220 13,575,220 The following additional information is found in the tax working papers: Dividends were from Heath 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. Sportico. 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 CLL, Inc. The stock was purchased March 5, 2009. 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 2018 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. Sportico, Inc. declared a $345,000 cash dividend during the current year. . During 2018, Sportico, Inc. made estimated tax payments of $80,000 each quarter to the IRS. Salaries and wages includes $200,000 paid to Mr. Johns and Ms. Leigh ($100.000 each)