Upright is a calendar year, accrual basis retail business Its financial statements, prepared on the basis of Generally Accepted Accounting Principles, provide the following information for the year Revenue from sales of goods $ 890,750 Cost of goods sold (FIFO) 398,780 Gross profit 491,970 Interest income from city bonds 1,320 Dividend income from IBM stock (Upright owns less than 1 of outstanding shares) 7,390 Gain from sale of IBM stock purchased in 2010 7,200 Bad debt expense 2,750 Administrative salaries and wages 94,180 Business and employment taxes 31,200 Interest expense on debt incurred to buy inventory 5,110 Advertising 6,260 Meals 4,320 Entertainment 1,850 Property insurance premiums 4,370 Depreciation 17,920 Repairs and maintenance 20,640 Supplies 3,320 Utilities 21,090 Contributions to charity 5,640 Uprights records reveal the following facts Bad debt expense equals the addition to an allowance for bad debts Actual write offs of uncollectible accounts totaled $2,800 The owner(s) did not receive any compensation or withdraw any funds from Upright Because of the UNICAP rules, Uprights cost of goods sold for tax purposes exceeds cost of goods sold for financial statement purposes by $26,700 Administrative salaries include an accrued $5,000 year end bonus to the sales manager, who does not have an ownership interest in Upright and is not related to any owner The bonus was paid on January 25 of the following year MACRS depreciation for assets placed in service in prior years is $6,400 The only assets acquired during the year were new office furniture costing $12,800, placed in service on October 23 Upright did not dispose of any assets Assume Upright is a corporation operating in a state without a corporate income tax Upright made estimated federal tax payments totaling $20,200 Compute taxable income and Uprights federal income tax Complete page 1, Form 1120, through line 36 and all of Schedule M 1, page 6, Form 1120, for 2018

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Upright is a calendar-year, accrual-basis retail business. Its financial statements, prepared on the basis of Generally Accepted Accounting Principles, provide the following information for the

Upright is a calendar-year, accrual-basis retail business. Its financial statements, prepared on the basis of Generally Accepted Accounting Principles, provide the following information for the year:

			Revenue from sales of goods	$ 890,750
	Cost of goods sold (FIFO)	398,780
	Gross profit	491,970
	Interest income from city bonds	1,320
	Dividend income from IBM stock (Upright owns less than 1% of outstanding shares)	7,390
		7,390
	Gain from sale of IBM stock purchased in 2010	7,200
	Bad debt expense	2,750
	Administrative salaries and wages	94,180
	Business and employment taxes	31,200
	Interest expense on debt incurred to buy inventory	5,110
	Advertising	6,260
	Meals	4,320
	Entertainment	1,850
	Property insurance premiums	4,370
	Depreciation	17,920
	Repairs and maintenance	20,640
	Supplies	3,320
	Utilities	21,090
	Contributions to charity	5,640

Uprights records reveal the following facts:
	Bad debt expense equals the addition to an allowance for bad debts. Actual write-offs of uncollectible accounts totaled $2,800.

	The owner(s) did not receive any compensation or withdraw any funds from Upright.

	Because of the UNICAP rules, Uprights cost of goods sold for tax purposes exceeds cost of goods sold for financial statement purposes by $26,700.

	Administrative salaries include an accrued $5,000 year-end bonus to the sales manager, who does not have an ownership interest in Upright and is not related to any owner. The bonus was paid on January 25 of the following year.



	MACRS depreciation for assets placed in service in prior years is $6,400.
	The only assets acquired during the year were new office furniture costing $12,800, placed in service on October 23. Upright did not dispose of any assets. Assume Upright is a corporation operating in a state without a corporate income tax. Upright made estimated federal tax payments totaling $20,200. Compute taxable income and Uprights federal income tax. Complete page 1, Form 1120, through line 36 and all of Schedule M-1, page 6, Form 1120, for 2018.