Using the data above, prepare the form 1120 and related schedules and statements as you deemed necessary under the tax law after the Cares Act.
Gross Sales Sales and Returns Net Sales Cost of Good Sold Gross Profit Dividends In 50% US Corp Interest Income City of Tustin Muni Bonds CDs Total Income Salaries Joe Salaries Sam Bad Debts Other Salaries Taxes-State and Local Repairs and Maintenance Interest Expense: Loan to purchase Tustin Bonds Line of Credit Advertising Rental Expense Depreciation Book Depreciation\" Cash Charitable Contributions Premiums on Life Insurance for Owners Total Expenses 35,000,000 (1,000,000) 34,000,000 (15,000,000) 19,000,000 3,000,000 75,000 25,000 22,100,000 1,500,000 1,500,000 250,000 230,000 650,000 140,000 50,000 9,500,000 200,000 150,000 600,000 1,500,000 150,000 16,420,000 Cash Accounts Receivable Bad Debt Allowance Inventories Stock Investment State Bonds CDs Equipment: Ryans Contribution Other Equipment Accumulated Depreciation Other Assets (including Deferred Taxes) Total Assets Accounts Payable ** Line Of Credit (10%) Capital Stock Retained Earnings Total Liabilities and Equity ** Includes borrowing for Tax Exempt Bonds 12/3 1/ 2019 20,950,000 2,500,000 (250,000) 45,000,000 30,000,000 1,500,000 800,000 5,000,000 (2,500,000) 5,000,000 108,000,000 5,000,000 95,000,000 3,000,000 5,000,000 108,000,000 12(31t2020 13,975,950 3,000,000 (500,000) 55,000,000 30,000,000 1,500,000 800,000 1,500,000 6,000,000 (3,100,000) l,000,000 1 16,175,950 7,500,000 95,000,000 4,500,000 9,175,950 1 16,175,950 On November 1, 2008, Joe Morgan 1,000 shares and Sam Arnold 1,000 shares formed ACME Sports, Inc., to manufacture and sell Sporting Goods. In the current year 2020, Ryan Fountain contributed $1,500,000 worth of manufacturing equipment with a tax basis of $500,000 for another 1,000 shares in the Company. Pertinent information regarding ACNIE Sports, Inc. is summarized as follows: ACME Sports, Inc.'s business address is 1010 Northwest Parkway, Tustin CA 92782; its telephone number is (714) 555-2211. The employer identication number is l 1-1111112, and the principal business activity code is 339920. Joe and Sam each owned 50% (33% after Ryan's contribution) of the common stock; Joe is president and Sam is vice president of the company. Ryan is now a 33% investor. He doesn't hold any titles for the corporation. Both Joe and Sam are full-time employees of ACME Sports, Inc. Joe's Social Security number is 123-45-6788, and Sam's Social Security number is 123-45-6787. ACME Sports, Inc. is an accrual method (can't use the cash method because of gross receipts level), calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. ACME Sports, Inc. uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. During 2020, the corporation distributed cash of $600,000 equally to all shareholders. ACME Sports, Inc.'s GAAP audited nancial statements for 2020 are shown in separate le. Depreciation for tax purposes is $750,000. You are not provided enough detailed data to complete a Form 4562 (depreciation). If you solve this problem using Intuit ProConnect, enter the amount of depreciation on line 20 of Form 1120. During 2020, ACME Sports, Inc. made estimated tax payments of $650,000 each quarter to the IRS. Prepare a Form 1120 for ACME Sports, Inc. for tax year 2020. Suggested soware: ProConnect Tax Online
