With the information provided below, please fill out form 1120

Preparation Of tax returns and related schedules can be helpful in terms Of integrating and applying tax concepts. To that end: please prepare the appropriate tax forms and schedules for the problem below. You may use the software provided with your textbook or prepare the forms by hand. Instructions for all fonns and schedules may be obtained from the IRS website. A hard copy of your solution with schedules and forms in proper attachment order (stapled or clipped) is to be submitted in class Check figure: Taxable Income (Ime 30) = On November 17 2001, Autumn Leigh and Aaron Johns formed Sportico, Inc. to sell sporting goods. Pertinent information regarding Sportico, Inc. is summarized as follows: Spot-tico lnc_ 's business address is 2120 Rebecca Lane, Great Falls, Montana 59401 ; its telephone number is (575) 541-1122; and its email address is Sportico@Sportico.com- The employer identification number is I I-I I I I I I l, and the principal business activity code is 451110- Autumn is president of the company, and Aaron is vice president. Aaron and Autumn are full-time employees of Sportico, Inc. Autumn' s Social Security number is 123-45-6789, and Aaron's Social Security number is 987-65-4321. Sportico, Inc. is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Sportico, Inc. uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes_ Sportico: Inc.'s income statement for 2018 is shown on page 2. Sportico, Inc. 's balance sheet is as follows: Jan Accounts receivable Inventories Stock investment State of N'lontana bonds Certificates of D sit Prepaid federal tax Buildin s and other d eciable assets Accumulated d eciation Land Other assets Total assets Accounts le Other current liabilities Mort es Ca ital stock Retained E Total liabilities and e ui 1, 2018 1 200,000 2 062 500 1 125,000 375 ooo 400,000 4 805 ooo 727 000 812500 140,000 12 43 000 175 ooo 4 625 000 3 359,000 12 43 ooo December 31, 201S 1 750,243 2 247 ooo 1 075.000 375 ooo 400,000 3,977 5 305 ooo 1 602 000 812,500 178 soo 13 75 20 ooo 4 575 000 4 370,220 13 75 20 The following additional information is found in the tax working papers: Dividends were from Heath Corporation, a less-than-20%-owned domestic corporation. I Other income includes key officer life insurance proceeds of $200,000. The capital gain resulted from the sale of Bulldog Enterprises stock. Sportico, Inc. purchased the Bulldog Enterprises stock on 3/2/2011 for S24,ooo- The loss due to worthlessness of stock was due to the bankruptcy of CLL, Inc. The stock was purchased March 5, 2009. Purchases (for COGS) were S3 , 380,000. Retained earnings are unappropriated- All contributions were paid in cash during the current year to Great Falls University. State income taxes for 2018 were $3,000 (included in the state, local, and payroll tax expense). Actual bad debts for the year were $5.500- The actual warranty outlay for the year was $7250. For tax purposes, depreciation amounted to $950,000. Sportico, Inc. declared a S345,000 cash dividend during the current year. During 201 Sportico, Inc. made estimated tax payments of S80,OOO each quarter to the IRS- Salaries and wages includes S200,000 paid to Mr. Johns and Ms. Leigh ($100,000 each).