Univex is a calendar year, accrual basis retail business. Its financial statements provide the following information for the year:

Revenues from sales of goods$783,200Cost of goods sold (FIFO)(417,500)Gross profit$365,700Interest income from certificates of deposit1,300Dividend income from IBM stock6,720Gain from sale of IBM stock purchased in 20008,615Bad debt expense3,900Administrative salaries and wages153,400Business and employment taxes31,000Interest expense on debt incurred to buy inventory5,100Advertising7,000Meals3,780Property insurance premiums4,300Depreciation10,800Repairs and maintenance18,700Supplies4,120Utilities21,000Contributions to charity5,000

Univex's records reveal the following facts:

• Bad debt expense equals the addition to an allowance for bad debts. Actual write-offs of uncollectible accounts totaled $2,000.
• MACRS depreciation for the year was $21,240.
• Univex made no dispositions of operating assets.
• The owners did not receive compensation or withdraw any funds from Univex.
• Univex is entitled to an $1,800 general business credit.

1. a.Assume Univex is a sole proprietorship. Complete Schedule C, Form 1040.
2. b-1.Assume Univex is an LLC. Complete page 1, Form 1065.
3. b-2.Assume Univex is an LLC. Complete Schedule K, Form 1065.
4. c-1.Assume Univex is a corporation operating in a state without a corporate income tax. Univex made estimated federal tax payments totaling $23,500. Compute taxable income on page 1, Form 1120, calculate Univex's federal income tax, and complete page 1, Form 1120.
5. c-2.Assume Univex is a corporation operating in a state without a corporate income tax. Univex made estimated federal tax payments totaling $23,500. Reconcile Income (Loss) as per Books With Income per Return. Complete Schedule M-1, page 5, Form 1120.

NOTE: Although the available forms are for 2017, please use 2018 tax rules to calculate taxable income and corporate tax liability. Enter all amounts as positive unless otherwise indicated in the forms themselves.

This is the answer I have for Schedule C Part a, and it seems to be complete?

Cash G Did you "materially participate" in the operation of this business during 2017? If "No," see instructions for limit ( Yes on losses No H If you started or acquired this business during 2017, check here I Did you make any payments in 2017 that would require you to file Form(s) 1099? (see instructions) YES J If "Yes," did you or will you file required Forms 1099? Yes Part I Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked O 783,200 2 Returns and allowances 3 Subtract line 2 from line 1 783,200 4 Cost of goods sold (from line 42) 417,500 5 Gross profit. Subtract line 4 from line 3 365,700 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 7 Gross income. Add lines 5 and 6 365,700 Part II Expenses Enter expenses for business use of your home only on line 30 B Advertising 9 Car and truck expenses (see) 7,000 18 Office expense (see instructions 19 Pension and profit-sharing plans 18 19 instructions) 20 Rent or lease (see instructions) 10 Commissions and fees a Vehicles, machinery, and equipment 20a 11 Contract labor (see instructions) Other business property 206 12 Depletion 12 21 Repairs and maintenance 21 18,700 13 Depreciation and section 179 22 Supplies (not included in Part III) 22 1,120 expense deduction (not included 23 Taxes and licenses 23 31,000 in Part Ill) (see instructions) 13/ 21,240 24 Travel, meals, and entertainment 14 Employee benefit programs Travel 24al (other than on line 19) 14 b Deductible meals and 15 Insurance (other than health) 15 4,300 entertainment (see instructions) 24 6 16 Interest 25 Utilities 21,000 a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits) 26 153,400 b Other 5,100 278 Other expenses (from line 48 27al 2.000 17 Legal and professional services 17 b Reserved for future use 27b 26 Total expenses before expenses for business use of home. Add lines 8 through 27a 28 269,750 29 Tentative profit or (loss). Subtract line 28 from line 7 291 05,950 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions) Simplified method fillers only: enter the total square footage of: (a) your home: and (b) the part of your home used for Use the Simplified business: Method Worksheet in the instructions to figure the amount to enter on line 30 30 31 Net profit or (loss). Subtract line 30 from line 29. . If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2 (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3 95,950 . If a loss, you must go to line 32. 32 If you have a loss, check the box that describes your investment in this activity (see instructions). . If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and 32a All investment is at risk. on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). 32b Some investment is not at risk. Estates and trusts, enter on Form 1041, line 3Service www.irs_gov/form1065 A Principal business activity Name of Partnership D Employer identification number Univex Principal product or service Number, street, and room or suite no. If a P.O. box, see Date business started Type or Print Instructions C Business code number City or town, state or province, country, and ZIP or postal code. F Total assets (see the instructions) G Check applicable boxes: O(1) Initial Return (2) Final Return (3) Name Change O(4) Address Change (5) Amended Return (6) Technical termination - also check (1) or (2) H Check accounting method: (1) Cash O(2) Accrual (3) Other (specify) | Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year J Check if Schedules C and M-3 are attached Caution. Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more Information. 1a Gross receipts or sales b Returns and allowances 1a 16 783,200 c Balance. Subtract line 1b from line 18 783,200 2 Cost of goods sold (attach Form 1125-A) 417,600 Income 3 Gross profit. Subtract line 2 from line 1c 365,700 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) 5 Net farm profit (loss) (attach Schedule F (Form 1040)) 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (loss) (attach statement) B Total income (loss). Combine lines 3 through 7 365,700 9 Salaries and wages (other than to partners)(less employment credits) 153,400 10 Guaranteed payments to partners 11 Repairs and maintenance 18,700 2 Bad debts 2,000 13 Rent Deductions 14 Taxes and licenses 31,000 see the 5 Interest 5,100 Instructions for 168 Depreciation (if required, attach Form 4562) 16al 21.240 limitations) Less depreciation reported on Form 1125-A and elsewhere on retum 1 6t 16c 21,240 17 Depletion (Do not deduct oil and gas depletion.) 18 Retirement plans, etc 19 Employee benefit programs 20 Other deductions (attach statement) 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 231,440 22 Ordinary business income (loss). Subtract line 21 from line 8 134,260 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my nowledge and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member manager) is based on all information of which preparer has any knowledge Sign May the IRS discuss this return with the Here preparer shown below (see instructions)? Signature of general partner or limited liability company member manager Date Yes 0 NoForm 1065 (2017) Page 4 Schedule K Partners' Distributive Share Items Total amount 1 Ordinary business income (loss)(page 1, line 22) 95,950 2 Net rental real estate income (loss)(attach Form 8825) 3a Other gross rental income (loss) b Expenses from other rental activities (attach statement) 3a c Other net rental income (loss). Subtract line 30 from line 38 3c 4 Guaranteed payments 5 Interest income 1,300 Income (Loss) 6 Dividends: a Ordinary dividends b Qualified dividends Gb 6,720 7 Royalties B Net short-term capital gain (loss)(attach Schedule D (Form 1065)) 98 Net long-term capital gain (loss)attach Schedule D (Form 1065)) 9al b Collectibles (28%) gain (loss) gb c Unrecaptured section 1250 gain (attach statement) 9c 10 Net section 1231 gain (loss)(attach Form 4797) 10 Type 11 Other income (loss)(see instructions) 2 Section 179 deduction (attach Form 4562) 12 138 Contributions 13a 5,000 Deductions b Investment interest expense 13b Section 59(e)(2) expenditures: (1) Type (2) Amount 130(2) d Other deductions (see instructions) Type (2) Amount 13d 148 Net earnings (loss) from self-employment 14a Self-Employment | b Gross farming or fishing income 146 C Gross nonfarm income 140 158 Low-income housing credit (section 42(])(5)) 15a Low-income housing credit (other) 156 Credits C Qualified rehabilitation expenditures (rental real estate)(attach Form 3468) 150 Other rental real estate credits (see instructions) Type 15d Other rental credits (see instructions) Type 15e Other credits (see instructions) Type > General business 1,800 168 Name of country or U.S. possession b Gross income from all sources 16b C Gross income sourced at partner level 160 - Foreign gross income sourced at partnership level d Passive e Gen. Other category category 16f Foreign Deductions allocated and apportioned at partner level Transactions Interest expense h Other 16h Deductions allocated and apportioned at partnership level to foreign source income Passive Gen. Other category Category 16k Total foreign taxes (check one): Paid Accrued 16 m Reduction in taxes available for credit (attach statement) 16m n Other foreign tax information (attach statement) 178 Post-1986 depreciation adjustment 17a Alternative Adjusted gain or loss 17b Minimum Tax C Depletion (other than oil and gas) 170 AVT) tar oilSch. PH) PRINT 3 Personal service corp. (see City, state, or province, country and ZIP or foreign postal instructions) code D Total assets (see instructions) 4 Schedule M-3 attached E Check if: (1) Initial retum (2) Final return (3) Name change (4) Address change ia Gross receipts of sale 783,200 b Returns and allowances Balance. Subtract line 1b from line 1a 783,200 2 Cost of goods sold (attach Form 1125-A) 417,500 3 Gross profit. Subtract line 2 from line 1c 365,700 4 Dividends (Schedule C, line 19) 6,720 Income 5 Interest 1,300 6 Gross rents 7 Gross royalties B Capital gain net income (attach Schedule D (Form 1120)) 9 Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) 10 Other income (see instructions - attach statement) 11 Total income. Add lines 3 through 10 382,335 12 Compensation of officers (see instructions - attach Form 1125-E] 13 Salaries and wages (less employement credits) 153 400 14 Repairs and maintenance 18,700 15 Bad debts 2,000 16 Rents 17 Taxes and licenses 31,000 18 Interest 5,100 Deductions (See 19 Charitable contributions 5,000 Instructions for 20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) 21,240 limitations on 21 Depletion deductions.) 22 Advertising 7,000 23 Pension, profit-sharing, etc., plans 24 Employee benefit programs 25 Domestic production activities deduction (attach Form 8903) 26 Other deductions (attach statement) 31,310 27 Total deductions. Add lines 12 through 26 274,750 28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11 107,585 298 Net operationg loss deduction (see instructions) 29a b Special deductions (Schedule C, line 20) 296 4,704 Add lines 29a and 290 29c 4,704 30 Taxable income. Subtract line 290 from line 28 (see instructions) 30 102,881 31 Total tax (Schedule J. Part I, line 11) 31 21.574 Tax, Refundable 32 Total payments and refundable credits (Schedule J, Part II, line 21) 32 23,500 Credits, and 33 Estimated tax penalty (see instructions). Check if Form 2220 is attached 33 Payments 34 Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed 34 35 Overpayment. If line 32 is larger than the total of lines 31 and 33, enter amount overpaid 35 1,926 36 Enter amount from line 35 you want: Credited to 2016 estimated tax Refunded 1,926 Under penalties of perjury, I declare that I have examined this retum, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge Sign May the IRS discuss this return with the preparer? Here Signature of officer Date Title Yes NoSchedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or more - see instructions i Net income (loss) per books B4,201 Income recorded on books this year not included on 2 Federal income tax per books 26,374 this return (itemize): 3 Excess of capital losses over captial gains Tax-exempt interest 4 Income subject to tax not recorded on books this year (itemize) 5 Expenses recorded on books this year not B Deductions on this return not charged against deducted on book this return (itemize): income this year (itemize): B Depreciation 13,410 B Depreciation 13,410 b Charitable contributions 5,000 b Charitable contributions 5,000 c Travel and entertainment c Other (include all items) 18,410 d Other (include all items) 3,780 22,190 9 Add lines 7 and 8 18,410 6 Add lines 1 through 5 132,765 10 Income (page 1, line 28) - line 6 less line 9 114,355 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. @ 2018 McGraw-Hill Education

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a Completion of Schedule C Form 1040 Lets ensure everything is complete in the Schedule C Form 1040 Income Section 1 Gross Receipts or Sales 783200 2 Returns and Allowances 0 3 Subtract Line 2 from Li... View the full answer