Whatare the accounts or data in the attached fileI have to use them in order to fill in 1120form of U.S. Corporation Income Tax Return and what is the guide to link the account with the lineof form1120?

Pearson's Federal Taxation 2017 Comprehensive Authors: Rupert, Pope and Anderson C:3-61 Step 1: Identify temporary differences. Beginning of Year: Net basis of: Installment note receivable Fixed assets Liability for warranties Book $ -0360,000 -0- Tax $ -0320,000 -0- Carryovers: Net operating loss carryover Capital loss carryover End of Year: Net basis of: Installment note receivable Fixed assets Liability for warranties Difference $ -040,000 -0- $15,000 -0Book $ 30,000 280,000 12,000 Tax $ 21,000 192,000 -0- Carryovers: Net operating loss carryover Capital loss carryover Difference $ 9,000 88,000 12,000 $ -020,000 Steps 2 - 3: Prepare roll forward schedules and apply tax rates. DTAs: NOL carryover Capital loss carryover Liab. For warranties Total Times: Tax rate DTA Beg. of Year $15,000 -0-0$15,000 .34 $ 5,100 End of Year $ -020,000 12,000 $32,000 .34 $10,880 Change $(15,000) 20,000 12,000 $ 17,000 .34 $ 5,780 DTLs: Installment note Fixed assets Total Times: Tax rate DTL Beg. of Year $ -040,000 $40,000 .34 $13,600 End of Year $ 9,000 88,000 $97,000 .34 $32,980 Change $ 9,000 48,000 $ 57,000 .34 $ 19,380 Steps 4 - 5: No valuation allowance or uncertain tax position adjustment needed. Step 6: Federal income taxes payable. Gross profit Minus: Tax depreciation Interest expense ($18,000 - $2,000) Other business expenses U.S. prod. act. ded. ($300,000 x 0.09) Taxable income before NOL Minus: NOL deduction Taxable income $800,000 $128,000 16,000 220,000 27,000 Federal income taxes payable ($394,000 x 0.34) (391,000) $409,000 (15,000) $394,000 $133,960* *Given the facts of this problem, this amount also is the current federal income tax expense for book purposes. Step 7: Total federal income tax expense. Current federal income tax expense (from Step 6) Deferred income tax expense Total federal income tax expense $133,960 13,600* $147,560 *$19,380 - $5,780 from Steps 2 - 3 Step 8: Journal entry. Current federal income tax expense Deferred income tax expense Deferred tax asset Deferred tax liability Federal income taxes payable 133,960 13,600 5,780 19,380 133,960 Step 9: Tax provision reconciliation. Net income before federal income taxes Permanent differences: Nondeductible interest Penalties and fines Municipal interest U.S. production activities deduction Net income after permanent differences Temporary differences: Warranty expense Capital loss Depreciation Installment sale NOL carryover $450,000 2,000 10,000 (1,000) (27,000) $434,000 12,000 20,000 (48,000) (9,000) (15,000) Taxable income $394,000 Federal income tax expense ($434,000 x 0.34) $147,560 Effective tax rate ($147,560/$450,000) Federal income taxes payable ($394,000 x 0.34) 32.79% $133,960 Step 10: Effective tax rate reconciliation. Statutory tax rate Nondeductible interest ($2,000/$450,000 x 34%) Penalties and fines ($10,000/$450,000 x 34%) Municipal interest [($1,000)/$450,000 x 34%] U.S. production activities deduction [($27,000)/$450,000 x 34%] Effective tax rate ($147,560/$450,000) 34.00% 0.15% 0.75% (0.07)% (2.04)% 32.79% Step 11: Partial financial statement presentation. Net deferred tax liability ($32,980 DTL - $10,880 DTA) $ 22,100 Net income before federal income taxes Minus: Federal income tax expense Net income $450,000 (147,560) $302,440 Effective tax rate ($147,560/$450,000) 32.79% pp. C:3-43 through C:3-54. C:3-62 a. Deferred tax asset = $20,000 x 0.34 = $6,800. Valuation allowance = $8,000 x 0.34 = $2,720. b. Current federal income tax expense = $500,000 x 0.34 = $170,000. Deferred federal income tax expense (benefit) = $6,800 - $2,720 = ($4,080). Total federal income tax expense = $170,000 - $4,080 = $165,920. Federal income taxes payable = $500,000 x 0.34 = $170,000. c. Journal entry: Current federal income tax expense Deferred tax asset Deferred federal income tax expense (benefit) Valuation allowance Federal income taxes payable d. Tax provision reconciliation: 170,000 6,800 4,080 2,720 170,000 Operating income Capital loss Net income before federal income taxes Permanent differences: Capital loss carryover > 50% likely to be unrealized Net income after permanent differences Temporary differences: Capital loss carryover 50% likely to be realized Taxable income $500,000 (20,000) 480,000 8,000 488,000a 12,000 $500,000b a Total federal income tax expense = $488,000 x 0.34 = $165,920. Effective tax rate = $165,920/$480,000 = 34.57%. b Federal income taxes payable = $500,000 x 0.34 = $170,000. e. Effective tax reconciliation: Federal statutory rate Increase due to valuation allowance ($8,000/$480,000 x 34%) Effective tax rate Note that the valuation allowance increases the effective tax rate. 34.00% 0.57% 34.57%