You will also need to complete Page 1 of the 2019 Form 1120 U.S. Corporation Income Tax Return. You will only need to complete through line 30. These forms are found on the IRS website (www.irs.gov).

Note that the depreciation amounts computed on Form 4562 flow to Form 1120 page 1. The Form 1120 page 1 is the tax income statement that includes all tax amounts for income and deductions. The Modified Schedule M-1 starts with net income per books and adjusts the book revenues and expenses to tax amounts using book-tax differences. Line 28 of the Form 1120 should tie to line 8 on the Modified Schedule M-1. Do not worry about including any non-numerical information that is not provided with the assignment.

The company owns the following assets: Land purchased on 5/1/2014 for $200,000. The land was placed in service on 6/1/2014. Building purchased on 5/1/2014 for $655,000. The building was placed in service on 6/1/2014. Screen printing machinery (7yr) purchased and placed in service on 6/1/2014 for $280,000. Office furniture and fixtures (7yr) purchased and placed in service on 1/1/2015 for $55,000

Additional screen printing machinery (7yr) purchased and placed in service on 2/1/2019 for $235,000 Computer equipment (5yr) purchased and placed in service on 3/1/2019 for $35,000 Warehouse (39yr) purchased and placed in service on 9/1/2019 for $560,000 Back the Pack uses straight line depreciation for book purposes. See the book income statement in the Excel workbook for book depreciation expense for 2019.

In additional information for 2019 follows:

• On November 1, 2019, the Company paid $18,000 premium for a casualty insurance policy for the period 1/1/2020 through 12/31/2020.
• Specific account write-offs charged to the Allowance for Doubtful Accounts equaled $35,000
• Bonuses were paid on March 28, 2020

Book Income Statement
December 31, 2019
	Debit	Credit
Sales		1,675,000
Cost of Goods Sold	435,000
Municipal Bond Interest Income		3,500
Salaries and Wages (all paid by 12/31/2019)	475,000
Bonuses	120,000
Advertising Costs	13,500
Meals Expense	5,000
Penalty Expense	850
Bad Debt Expense	22,000
Depreciation Expense	82,500
Casualty Insurance Expense	-
Totals	1,153,850	1,678,500
Book Income Before Taxes		524,650

Please fill out the following:

from 1120 Rents. Interest U.S. Corporation Income Tax Return OMB No. 1545-0123 For calendar year 2019 or tax year beginning 2019, ending 20 Department of the Treasury 2019 Internal Revenue Service Go to www.irs.gov/Form 1120 for instructions and the latest information. A Check if: Name B Employer identification number B 1a Consolidated return (attach Form 851) TYPE b Lifeonlife consoli Number, street, and room or suite no. If a P.O. box, see instructions. C . NOR C Date incorporated dated return 2 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) 4 Schedule M-3 attached DE Check if: (1) Initial return E 1 12) Final return (3) Name change (4 Address change 1a Gross receipts or sales 1a b Returns and allowances 1b c Balance. Subtract line 1b from line 1a 1c 2 Cost of goods sold (attach Form 1125-A) 2 3 Gross profit. Subtract line 2 from line 1c 3 4 Dividends and inclusions (Schedule C, line 23) 4 7 5 5 5 6 Gross rents 6 0 7 Gross royalties 7 8 Capital gain net income (attach Schedule D (Form 1120)) 8 9 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 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 1 15 16 16 10 17 Taxes and licenses 17 18 18 Interest (see instructions) eres! To 19 Charitable contributions. 19 20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) 20 21 Depletion 21 22 Advertising 22 23 Pension, profit-sharing, etc., plans 23 24 Employee benefit programs 24 25 Reserved for future use. 25 26 Other deductions (attach statement) 26 27 Total deductions. Add lines 12 through 26 27 28 20 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 28 29a Net operating loss deduction (see instructions) 29a b Special deductions (Schedule C, line 24). 29b C Add lines 29a and 29b 29c 30 Taxable income. Subtract line 29c from line 28. See instructions 30 31 Total tax (Schedule J. Part I, line 11). 31 32 2019 net 965 tax liability paid (Schedule J, Part II, line 12) 32 32 33 Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23) 33 34 Estimated tax penalty. See instructions. Check if Form 2220 is attached 34 35 Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed 35 36 Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid 36 37 Enter amount from line 36 you want: Credited to 2020 estimated tax Refunded 37 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, Sign 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 with the preparer shown below? See instructions. Yes No Signature of officer Date Title Print/Type preparer's name Preparor's signature Date PTIN Paid Check Preparer self-employed Firm's EIN Firm's address Phone no For Paperwork Reduction Act Notice, see separate instructions. Cat No. 114500 Form 1120 (2019) Use Only Firm's name from 1120 Rents. Interest U.S. Corporation Income Tax Return OMB No. 1545-0123 For calendar year 2019 or tax year beginning 2019, ending 20 Department of the Treasury 2019 Internal Revenue Service Go to www.irs.gov/Form 1120 for instructions and the latest information. A Check if: Name B Employer identification number B 1a Consolidated return (attach Form 851) TYPE b Lifeonlife consoli Number, street, and room or suite no. If a P.O. box, see instructions. C . NOR C Date incorporated dated return 2 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) 4 Schedule M-3 attached DE Check if: (1) Initial return E 1 12) Final return (3) Name change (4 Address change 1a Gross receipts or sales 1a b Returns and allowances 1b c Balance. Subtract line 1b from line 1a 1c 2 Cost of goods sold (attach Form 1125-A) 2 3 Gross profit. Subtract line 2 from line 1c 3 4 Dividends and inclusions (Schedule C, line 23) 4 7 5 5 5 6 Gross rents 6 0 7 Gross royalties 7 8 Capital gain net income (attach Schedule D (Form 1120)) 8 9 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 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 1 15 16 16 10 17 Taxes and licenses 17 18 18 Interest (see instructions) eres! To 19 Charitable contributions. 19 20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) 20 21 Depletion 21 22 Advertising 22 23 Pension, profit-sharing, etc., plans 23 24 Employee benefit programs 24 25 Reserved for future use. 25 26 Other deductions (attach statement) 26 27 Total deductions. Add lines 12 through 26 27 28 20 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 28 29a Net operating loss deduction (see instructions) 29a b Special deductions (Schedule C, line 24). 29b C Add lines 29a and 29b 29c 30 Taxable income. Subtract line 29c from line 28. See instructions 30 31 Total tax (Schedule J. Part I, line 11). 31 32 2019 net 965 tax liability paid (Schedule J, Part II, line 12) 32 32 33 Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23) 33 34 Estimated tax penalty. See instructions. Check if Form 2220 is attached 34 35 Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed 35 36 Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid 36 37 Enter amount from line 36 you want: Credited to 2020 estimated tax Refunded 37 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, Sign 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 with the preparer shown below? See instructions. Yes No Signature of officer Date Title Print/Type preparer's name Preparor's signature Date PTIN Paid Check Preparer self-employed Firm's EIN Firm's address Phone no For Paperwork Reduction Act Notice, see separate instructions. Cat No. 114500 Form 1120 (2019) Use Only Firm's name