You are employed as an accountant for Accountant Consultants, Inc. Your goal today is to train three new accountants on how to complete Form 1120 and how they can help clients in strategizing how to mitigate taxable income.

Part I

For this weeks Individual Project (IP), you will pick 2 lines from each section of every schedule, including page 1 (Schedule C, J, K, L, M1, M2) of Form 1120, found on pages 909-917 of your textbook. You may also use Chapters 36 to help with this assignment. You will analyze the computations for each of these 2 lines and explain in 2 paragraphs how to arrive at the final numbers.

For the first part of this IP, you should analyze a total of 14 lines (2 lines per section for each schedule). You will evaluate what makes up that line and how to arrive at the computed figure. Your evaluation should be in paper form and include 2 paragraphs that describe each line item. When finished, you will have approximately 14 paragraphs of explanations.

Part II

As your second task, compute the 2021 tax liabilities for the following clients, state what strategies can be implemented to lower their tax liabilities, and based on your calculations, explain how a corporation's revenue affects taxation:

ABC Corporation has a taxable income of $75,450.

123 Corporation has a taxable income of $9,525,125.

Yellow Corporation, a personal service corporation, has a taxable income of $238,430.

For the second part of this IP, you will calculate the tax liabilities for each corporation. Based on your calculations, how does a corporation's revenue affect taxation, and how would a corporation lower its tax liability?