Taylor Swift Corporation sells unique T-Swift merch for swifties. Taylor Swift Corporation has income and expenses for its current fiscal year with a calendar year end December 31, 2022, recorded under GAAP, as shown in the following schedule. In addition, a review of Taylor Swifts books and records reveals the following information:

Taylor Swift expensed, for book purposes, meals totaling $30,000 and entertainment totaling $50,000. Further detail shows that $20,000 of the meals were provided by a restaurant and the remaining $10,000 were not provided by a restaurant. These costs were incurred by Taylor Swifts sales personnel, are reasonable in amount, and are documented in company records.

During January of the current year, Taylor Swift was sued by one of its employees because of a work-related accident. The suit has not yet gone to court. However, Taylor Swifts auditors required the company to record a contingent liability (and related book expense) for $60,000, reflecting the companys likely liability from the suit. Taylor Swift recorded federal income tax expense for book purposes of $70,000.

Taylor Swift used the reserve method for calculating bad debt expenses for book purposes. Its book income statement reflects bad debt expense of $25,000, calculated as 2% of net sales revenue. Actual write-offs of accounts receivable during the year totaled $18,000.

MACRS depreciation for the year totals $90,000.

Taylor Swift received dividend income of $20,000 from Lana Del Rey Corporation, of which they own 10%. They also received dividend income of $100,000 from Phoebe Bridgers Corporation, of which they own 70%. Corporate tax rate is 21% and the company made no estimated tax payments.

Taylor Swift Corporation uses the accrual method of accounting.

There are over 100 shareholders that all own equal parts and have been the shareholders since December 13, 1989.

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Enter all information directly onto forms and save as PDF.

Prepare the following schedules:

1. Schedule 1120 (pages 1-6) a. Schedule C b. Schedule K c. Schedule M-1

2. Schedule 4562

You can find all schedules at https://www.irs.gov/forms-instructions-and-publications You can find business activity codes at https://www.irs.gov/pub/irs-soi/18pf_business_codes.pdf

Corporation Information Taylor Swift Corporation 13 Cornelia Street New York, New York 10001 Employer Identification Number: 12-3456789 Date Incorporated: December 13, 1989 Lana Del Rey Corporation 123 California Road Los Angeles, California 90210 Employer Identification Number: 98-7654321 Date Incorporated: June 21, 1985 Phoebe Bridgers Corporation 987 Scott Street Pasadena, California 91001 Employer Identification Number: 23-4567891 Date Incorporated: August 17, 1994

Balance Sheet Assets: 12/31/2021 12/31/2022 Cash 340,000 400,000 Accounts Receivable 200,000 240,000 Less: Allowance for Bad Debt (10,000) (12,000) Inventory 60,000 80,000 Fixed Assets 500,000 500,000 Less: Accumulated Depreciation (150,000) (230,000) Land 200,000 200,000 Total Assets: $1,140,000 $1,178,000 Liabilities and Shareholders Equity: 12/31/2021 12/31/2022 Accounts Payable 250,000 200,000 Note Payable 320,000 320,000 Capital Stock 50,000 50,000 Additional paid-in Capital 200,000 200,000 Retained Earnings 320,000 408,000 Total Liabilities and Shareholders Equity: $1,140,000 $1,178,000 Income Statement Item Amount Income: Gross Sales 1,300,000 Less: Returns (50,000) Net Sales 1,250,000 Cost of Goods Sold 500,000 Gross Profit 750,000 Interest Income 5,000 Dividend Income 120,000 Total Income $875,000 Expenses: Salaries and Wages 220,000 Bad Debts 25,000 Advertising 40,000 Meals & Entertainment 80,000 Depreciation 80,000 Interest 10,000 Utilities 40,000 Rent 100,000 Other 112,000 Total Expenses $707,000 Income before taxes $168,000 Federal income tax expense 80,000 Net Income $88,000