Using Adobe software, complete the corporate tax return (Form 1120 and related forms/schedules) for Sweetie Pie Corporation for the tax year 2021 with the information provided in the documents below.

On May 15, 2010, Lisa Smith and Julie Brown formed Sweetie Pie Corporation to sell pies, cupcakes, and other baked goods. Pertinent information and financial statements for Sweetie Pie Corporation is listed below: . . Sweetie Pie's business address is 3434 Main Street, Brentwood, CA 94513; its telephone number is (925) 555-3456; and its e-mail address is sweetiepie@sp.com. The employer identification number is 11-2233345, and the principal business activity code is 445291. Lisa owns 50% of the common stock and is president of the company, and Julie owns50% of the common stock and is vice president of the company. No other class of stock is authorized. Both Lisa and Julie are full-time employees of Sweetie Pie. Lisa's social security number is 123-45- 6678, and Julie's social security number is 123-45-7789. Sweetie Pie is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and are valued at cost using the lower of cost or market method. The rules of section 263A do not apply to Sweetie Pie and there was no change in determining quantity, cost, or valuation between opening and closing inventory for 2021. Sweetie Pie uses the straight-line method of deprecation for book purposes and modified accelerated cost recovery (MACRS) depreciation for tax purposes. MACRS depreciation for 2021 is $60,000. You are not provided enough detailed information to complete a Form 4562 (depreciation). During 2021, the corporation distributed cash dividends of $120,000. Sweetie Pie's financial statements for 2021 are shown below. Sweetie Pie made payments during 2021 that would require it to file Form 1099 which it plans to file with the IRS in a timely manner. During 2021, Sweetie Pie made estimated tax payments of $18,000 each quarter to the IRS. O . Sweetie Pie Corporation Income Statement For the Year Ended December 31, 2021 $ $ Income Gross Sales Less: Sales returns and allowances Net Sales Less: Cost of goods sold Gross profit Dividends received from less-than-20% owned U.S. corporations Interest Income: State bonds $ 24,000 Certificates of deposit 15,000 Total income 2,875,000 120,000 2,755,000 1,253,000 1,502,000 20,000 $ 39,000 1,561,000 $ $ $ 250,000 180.000 $ 430,000 325,000 85,000 50,000 6,000 $ Expenses Salaries - officers: Lisa Smith Julie Brown Salaries - clerical and sales Taxes (state, local, and payroll) Repairs and maintenance Bad debts Interest expense: Business loans Loan to purchase state bonds Advertising Rental expense Depreciation Charitable contributions** Employee benefit programs Premiums on term life insurance policies* Total expenses Net income before taxes Less: Federal income tax expense Net income per books 43,000 7.500 50,500 10,000 68,000 40,000 42,350 48,000 26.000 $ $ 1,180,850 380,150 79,800 300,350 $ *These policies are on the lives of Lisa Smith and Julie Brown and Sweetie Pie is the designated beneficiary **Assume these are charitable contributions of capital property and this represents the FMV Sweetie Pie Corporation Balance Sheet December 31, 2021 Assets 12/31/2020 12/31/2021 $ $ Cash Trade notes and accounts receivable Allowance for bad debts Inventories State bonds (tax-exempt security) Certificates of deposit (current asset) Stock investments (current asset) Building and other depreciable assets Accumulated depreciation Land Other assets Total Assets 380,000 318,400 (10,000) 900,000 160,000 140,000 300,000 240,000 (88,800) 20,000 3,600 2,363,200 240,630 490,280 (10,000) 1,012,000 160,000 140,000 300,000 240,000 (128,800) 20,000 3,320 2,467,430 $ $ Liabilities and Equity $ $ Accounts Payable Mortgage (less than 1 year) Other current liabilities Capital stock Retained earnings (unappropriated) Total Liabilities and Equity 300,000 210,000 80,300 500,000 1,272,900 2,363,200 274,180 200,000 40,000 500,000 1,453,250 2,467,430 $ $ On May 15, 2010, Lisa Smith and Julie Brown formed Sweetie Pie Corporation to sell pies, cupcakes, and other baked goods. Pertinent information and financial statements for Sweetie Pie Corporation is listed below: . . Sweetie Pie's business address is 3434 Main Street, Brentwood, CA 94513; its telephone number is (925) 555-3456; and its e-mail address is sweetiepie@sp.com. The employer identification number is 11-2233345, and the principal business activity code is 445291. Lisa owns 50% of the common stock and is president of the company, and Julie owns50% of the common stock and is vice president of the company. No other class of stock is authorized. Both Lisa and Julie are full-time employees of Sweetie Pie. Lisa's social security number is 123-45- 6678, and Julie's social security number is 123-45-7789. Sweetie Pie is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and are valued at cost using the lower of cost or market method. The rules of section 263A do not apply to Sweetie Pie and there was no change in determining quantity, cost, or valuation between opening and closing inventory for 2021. Sweetie Pie uses the straight-line method of deprecation for book purposes and modified accelerated cost recovery (MACRS) depreciation for tax purposes. MACRS depreciation for 2021 is $60,000. You are not provided enough detailed information to complete a Form 4562 (depreciation). During 2021, the corporation distributed cash dividends of $120,000. Sweetie Pie's financial statements for 2021 are shown below. Sweetie Pie made payments during 2021 that would require it to file Form 1099 which it plans to file with the IRS in a timely manner. During 2021, Sweetie Pie made estimated tax payments of $18,000 each quarter to the IRS. O . Sweetie Pie Corporation Income Statement For the Year Ended December 31, 2021 $ $ Income Gross Sales Less: Sales returns and allowances Net Sales Less: Cost of goods sold Gross profit Dividends received from less-than-20% owned U.S. corporations Interest Income: State bonds $ 24,000 Certificates of deposit 15,000 Total income 2,875,000 120,000 2,755,000 1,253,000 1,502,000 20,000 $ 39,000 1,561,000 $ $ $ 250,000 180.000 $ 430,000 325,000 85,000 50,000 6,000 $ Expenses Salaries - officers: Lisa Smith Julie Brown Salaries - clerical and sales Taxes (state, local, and payroll) Repairs and maintenance Bad debts Interest expense: Business loans Loan to purchase state bonds Advertising Rental expense Depreciation Charitable contributions** Employee benefit programs Premiums on term life insurance policies* Total expenses Net income before taxes Less: Federal income tax expense Net income per books 43,000 7.500 50,500 10,000 68,000 40,000 42,350 48,000 26.000 $ $ 1,180,850 380,150 79,800 300,350 $ *These policies are on the lives of Lisa Smith and Julie Brown and Sweetie Pie is the designated beneficiary **Assume these are charitable contributions of capital property and this represents the FMV Sweetie Pie Corporation Balance Sheet December 31, 2021 Assets 12/31/2020 12/31/2021 $ $ Cash Trade notes and accounts receivable Allowance for bad debts Inventories State bonds (tax-exempt security) Certificates of deposit (current asset) Stock investments (current asset) Building and other depreciable assets Accumulated depreciation Land Other assets Total Assets 380,000 318,400 (10,000) 900,000 160,000 140,000 300,000 240,000 (88,800) 20,000 3,600 2,363,200 240,630 490,280 (10,000) 1,012,000 160,000 140,000 300,000 240,000 (128,800) 20,000 3,320 2,467,430 $ $ Liabilities and Equity $ $ Accounts Payable Mortgage (less than 1 year) Other current liabilities Capital stock Retained earnings (unappropriated) Total Liabilities and Equity 300,000 210,000 80,300 500,000 1,272,900 2,363,200 274,180 200,000 40,000 500,000 1,453,250 2,467,430 $ $