The Snap-It-Open Corporation incorporated and began operations in January 15 of the current year. Its address isXXXXX Baltimore, MD 23239. Its employer identification number is XXXXX The corporation elects to file its initial tax return as a calendar-year corporation and uses the accrual method of accounting. It elects the FIFO method of inventory valuation. Jason Sprull, SSN XXX-XX-XXXX, and Martin Winwsock, SSN XXX-XX-XXXX, formed the business. They each contributed $250,000 cash for 50 percent of the 100,000 shares of $1 par value stock issued and outstanding. The company is formed to assemble and market a unique, compact, snap-open umbrella, and its business activity code is 339900. These umbrellas are sold to multiple organizations as premiums. The company purchases the umbrella frames and several types of waterproof fabric for the umbrella material and covers from various manufacturers. It prints the organizations' advertising logos or other designs on the umbrella material and covers. It then assembles these on the umbrella frames for delivery to the customer, along with the covers. On January 16, the company installed two new machines for printing and cutting the fabric for the umbrellas that it had purchased for $250,000 each and two used umbrella assembly machines that it had purchased for $200,000 each. The company obtained a bank loan of $750,000 secured by the machines. Jason and Martin were required to personally guarantee this loan with an 8 percent annual interest rate on the unpaid balance. The first principal payment of $100,000 is not due until January 16 of the next year. During the year, the company purchased $150,000 of fabric and $210,000 of umbrella frames. It returned one order of frames valued at $5,000 because of a defect in the snap-open mechanism and received a cash refund for that amount. Both Jason and Martin worked full-time in the business. Jason was the salesperson for the company, and Martin managed the office and printing and assembly operations. Each received a salary of $60,000 for the year. They had six employees with the following incomes for the year: $45,000 for an accountant; $21,000 for a receptionist; $28,000 for each of two print machine operators; and $25,000 for each of two assembly machine operators. There are no accrued salaries or taxes as of the end of the current year. FUTA taxes are assessed on the first $7,000 of wages at a rate of 6.2 percent. During the year, the company attained the umbrella sales worth $1,535,000 and collected $1,180,000 on these sales. It also paid the following expenses in cash: Rent $240,000 Repairs and Maintenance $20,000 Utilities $80,000 Taxes and Licenses excluding FICA and FUTA Tax $10,000 Health Insurance $16,000 Advertising $40,000 Travel excluding meals $20,000 Meals and Entertainment $15,000 Group and Term Life Insurance $2,000 As an accrual-basis taxpayer, the company recognized $57,500 in the interest expense on the note, $750,000 x 0.08 x 11.5/12, and established an allowance account for bad debts equal to 2 percent of sales. They recognized the depreciation expense for financial accounting equal to 10 percent of the purchase price for the new printing machines and 12.5 percent of the purchase price for the used assembly machines. Their inventory at the year-end consisted of $15,000 of fabric and $18,000 of umbrella frames, based on the FIFO inventory method. For ease, you are required only to allocate the factory salaries to the calculation of cost of sold goods. The company made estimated tax payments worth $40,000 for the year. Requirements: 1. Determining a Corporation's Income Tax Return. Submit form 1120 based on the project scenario. 2. Calculating Deprecaition and Amortization. Submt form 4562 based on the project scenario.