What would the interest amount be in the income section (page 1 of Form 1120), as well as, the depreciation, bad debt, and other deduction(s) amount be in the deductions section (page 1 of Form 1120)? I am between 7,000 and 10,000 for the interest, 10,000 and 28,000 for depreciation, 15,000 and 25,000 for bad debt, and many values (29,000, 51,000, etc.) for other deduction(s). Please help?

ZU mortgages, \"DIES, DUIIUS payable III I year or "IOI'E 21 Other liabilities (attach statement) Capital stock: a Preferred stock b Common stock Additional paid- in capital. . . . 24 Retained eamings Appropriated (attach statement) 25 Retained earningsUnappropriated . 26 Adjustments to shareholders' equity (attach statement) 27 Less cost of treasury stock . . 28 Total liabilities and shareholders' equity Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. Net income (loss) per books . Federal income tax per books Excess of capital losses over capital gains Income subject to tax not recorded on books this year (itemize): 7 Income recorded on books this year not included on this return (itemize): Tax-exempt interest awn-I- 8 Deductions on this return not charged against book income this year (itemize): a Depreciation . . $ b Charitable contributions $ __ 5 Expenses recorded on books this year not deducted on this return (itemize): a Depreciation . . b Charitable contributions . 0 Travel and entertainment. $ __________________________________________________________ Add lines 7 and 8.. . 6 Add lines 1 through 5.. . Income (page 1 line 28)line 6 less line 9 Schedule M- 2 Analysis of unappropriated Retained Earnings per Books (Line 25, Schedule L) Form 1120 U.S. Corporation Enter text ne Tax Return OMB No. 1545-0123 For calendar year 2018 or tax year beginning | 20 ent of the Treasury 2018, ending Internal Revenue Service Go to www.irs.gov/Form1120 for instructions and the latest information 2018 A Check if Name B Employer identification number 1a Consolidated return (attach Form 851) b Lifeonlife consoli- TYPE Number, street, and room or suite no. If a P.O. box, see instructions. C Date incorporated dated return . OR Personal holding co. PRINT (attach Sch. PH) . City or town, state or province, country, and ZIP or foreign postal code D Total assets (see instructions) 3 Personal service corp. (see instructions) . Schedule M-3 attached E Check if: (1) Initial return (2) Final return (3) Name change (4) Address change la Gross receipts or sales 1a b Returns and allowances 1b C Balance. Subtract line 1b from line 1a 1c W N Cost of goods sold (attach Form 1125-A) 2 Gross profit. Subtract line 2 from line 1c . 3 Income ONOUA Dividends and inclusions (Schedule C, line 23, column (a)) . 4 Interest 5 Gross rents 6 Gross royalties 7 Capital gain net income (attach Schedule D (Form 1120)) 8 Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) 9 10 Other income (see instructions - attach statement) 10 11 Total income. Add lines 3 through 10 11 or limitations on deductions.) 12 Compensation of officers (see instructions-attach Form 1125-E) 12 13 Salaries and wages (less employment credits) 13 14 Repairs and maintenance 14 15 Bad debts . 15 16 Rents 16 17 Taxes and licenses 17 Interest (see instructions) 18 19 Charitable contributions 19 20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) 2017 Taxesandlicenses.......................... 17 '6 2 32 18 Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . 18 g 19 Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . 19 E 20 Depreciation from Form 4562 not claimed on Form 1125A or elsewhere on return (attach Form 4562) . . 20 L . 2 21 Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 g 22 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 '43 23 Pension, profitsharing, etc., plans . . . . . . . . . . . . . . . . . . . . . 23 g 24 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . 24 ,E 25 Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . 25 g 26 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . 26 '5 27 Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . b 27 .5 28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11 . 28 .. 3 29a Net operating loss deduction (see instructions) . . . . . . . . . 29a E b Special deductions (Schedule C, line 24, column (c)) . . . . . . . m c Add lines 29a and 29b . . . . . . . . . . . . . . . . . . . . . . . . . 29c 13 30 Taxable income. Subtract line 290 from line 28. See instructions 30 c _ \"L 31 Total tax ScheduleJ, Partl, line 11 . . . 31 III E m 32 2018 net 965 tax liability paid (Schedule J, Part II, line 12).. . 32 3 E 33 Total payments, credits, and section 965 net tax liability (Schedule J Part III, line 2.3) . . . 33 .D E E 34 Estimated tax penalty. See instructions. Check if Form 2220 is attached . . . . . . . . b D 34 l: n. E 35 Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed 35 x\" 36 Overpayment. lf line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid . . 36 Hi '- 37 Enter amount from line 36 you want: Credited to 2019 estimated tax b Refunded b 37 Under penalties of periury, I declare that I have examined this retun-i, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, Sig n and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. . May the IRS discuss this return Here ,4 Signature I with the preparer shown below? See instructions. Yes | | No Signature of officer Date Title _ Print/Type preparer's name Preparer's signature Date . PTIN Paid - Check I] If I! Signature selfemployed Preparer _ _ Use Only Firm s name > Firm 3 EIN > Phone For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 114500 Form 1120 (2018) Required: Complete Blue catering Service Inc.'s (BCS) 2019 Form 1120 (except for Schedule K and Schedule M-2), Schedule D, and Schedule G using the information provided below. Because the 2019 federal tax Rers are not currently available, we have to use the 2018 tax forms. Use the 21% at corporate income tax rate to calculate tax liability. ' Form 4562 for depreciation is not required. Include the amount of tax depreciation given in the problem on the appropriate line on the rst page of Form 1120. 0 Assume that BCS does not owe any alternative minimum tax. 0 If any information is missing, use reasonable assumptions to ll in the gaps. The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms. You need to turn in two parts of your work below: 1. Paper submission. Fill out Form 1120 (exclude Schedule K and M-2), Schedule D and Schedule G, which are posted under Files/T ax Return Project. Print them on paper and turn them in on Dec 9 (in class). 2. Online submission. You also need to use Excel to demonstrate your understanding of the calculation process and provide tax advice related to charitable contribution. Go to Canvas/Files/Tax Return Project and download the Tax Return Project Excel le. This is the le for you to build your work. The online submission is also due on Dec 9. o In the BTD tab, please provide the calculation of book-tax differences using the format below: Item name Book Tax Difference Favorable/Unfavorable o In the Taxable income tab, provide the calculation of taxable corporate income in a way similar to the Form 1120 (line la-line 28). You need to reference line items to the book-tax difference worksheet (BTD tab) when applicable. 0 In the Charitable contribution tab, BCS is considering making a charitable contribution that will be fully deductible in the 2019 tax return. Please advise BCS the maximum amount of charitable contribution that will be fully deductible in 2019 and provide your calculation (you need to reference to numbers in the BTD and Taxable income tabs). You do not need to use the deduction to calculate a new taxable income. Facts: Cara Gold, Janna Glints, and Val Cruz each own one-third of the common stock of Blue Catering Services Inc. (BCS). BCS was incorporated on February 4, 2011. It has only one class of stock outstanding and operates as a C corporation for tax purposes. BCS caters all types of social events throughout southern California. . BCS is located at 540 Waverly Way, San Diego, CA 92101. . BCS's Employer Identification Number is 38-4743474. . BCS's business activity is catering food and services. Its business activity code is 722300. . The shareholders also work as officers for the corporation as follows: o Cara is the chief executive officer and president (Social Security number 231-54-8976). Janna is the executive vice president and chief operating officer (Social Security number 798-56-3241). o Valerie is the vice president of finance (Social Security number 879-21-4536). . All officers devote 100 percent of their time to the business and all officers are U.S. citizens. . BCS uses the accrual method of accounting and has a calendar year-end. . BCS made four equal estimated tax payments of $20,000 each. Its tax liability last year was $70,000. If it has overpaid its federal tax liability, BCS would like to receive a refund. . BCS paid a dividend of $30,000 to its shareholders on November 1. BCS had ample earnings and profits (E&P) to absorb the distribution. The following is BCS's audited income statement for 2019: 1 of 3BCS Income Statement For year ending December 31, 2019 Revenue from sales $1,800,000 Sales returns and allowances (5,000) Cost of goods sold (3 50,000) Gross prot from operations$1,445,000 Other income: Capital loss (15,000) Dividend income 25,000 Interest income 10,000 Gross income $1,465,000 Expenses: Compensation (950,000) Depreciation (10,000) Bad debt expense (15,000) Meals and entertainment (3,000) Maintenance (6,000) Property taxes (11,000) State income taxes (45,000) Other taxes (44,000) Rent (60,000) Salary (5,000) Advertising (52,000) Professional services (16,000) Employee benets (32,000) Supplies (5,000) Other expenses (27,000) Total expenses 1 1,281,000) Income before taxes 184,000 Federal income tax expense (62,000) Net income after taxes $ 122,000 1. BCS's inventory-related purchases during 2019 were $3 60,000. It values its inventory based on cost using the FIFO inventory cost ow method. Assume the rules of 263A do not apply to BCS. 2. Of the $10,000 interest income, $1,250 was from a City of Irvine bond that was used to fund public activities (issued in 2015), $1,750 was from an Oceanside city bond used to fund private activities (issued in 2010), $1,000 was from a U.S. Treasury bond, and the remaining $6,000 was from a money market account. 3. BCS's dividend income came from Clever Cakes Inc. (CC). BCS owned 10,000 shares of the stock in Clever Cakes at the beginning of the year. This represented 10 percent of SSM outstanding stock. 4. On October 1, 2019, BCS sold 1,000 shares of its CC stock for $25,000. It had originally purchased these shares on April 18, 2014, for $40,000. After the sale, BCS owned 9 percent of CC. 5. BCS's compensation is as follows: o Cara $150,000 o Janna $140,000 o Valerie $130,000 o Other $530,000 6. BCS wrote off $25,000 in accounts receivable as uncollectible during the year. 7. BCS's regular tax depreciation was $28,000. None of the depreciation should be claimed on Form 1125A. 8. Other expenses include $6,000 for premiums paid on term life insurance policies for which BCS is the beneficiary. The policies cover the lives of Cara, Janna, and Valerie The following are BCS's audited balance sheets as of January 1, 2019, and December 31, 2019. 2019 January 1 December 31 Assets Cash $ 180,000 $ 205,000 Accounts receivable 560,000 580,000 Allowance for doubtful accounts (60,000) (50,000) Inventory 130,000 140,000 U.S. government bonds 30,000 30,000 State and local bonds 120,000 120,000 Investments in stock 400,000 360,000 Fixed assets 150,000 160,000 Accumulated depreciation 60,000) 60,000) Other assets 20,000 1,000 Total assets $1,470,000 $1,506,000 Liabilities and Shareholders' Equity Accounts payable 280,000 240,000 Other current liabilities 20,000 18,000 Other liabilities 40,000 26,000 Capital stock 400,000 400,000 Retained earnings 730,000 822,000 Total liabilities and shareholders' equity$1,470,000 $1,506,000