Form 1120 The Beard Corporation. Income & Expenses are as follows: $87,535 Cash Sales,$1,750 Customer Refunds,...

Form 1120 The Beard Corporation.

Income & Expenses are as follows: $87,535 Cash Sales,$1,750 Customer Refunds, $425 Interest Income, $1,575 Royalities - Expenses - $25,000 Officer Compensation, $4,250 book/Tax depreciation, $1,975 Interest expense, $750 Taxes & Licenses, $2,000 Advertising, $4,725 Utilities, $4,290 Packaging.

1. What is the gross sales amount reported on Form 1120, line 1a? A. $85,785, B. $87,535, C. $87,960, D. $89,535

2. What are the total deductions reported on Form 1120, line 27? A. $40,990, B. $42,740, C. $42,990, D. $44,740

3. What is the total income reported on Form 1120, line 11? A. $85,785, B. $87,535, C. $87,785, D. $89,535

Expert Solution

Ans. (1)	Gross Sale amount =	$87,535
	(i.e. Cash Sales - $87,535 )

Ans. (2)	Total Deductions reported =		$42,990

	i.e.
	Officer Compensation=	25,000
	Book/Tax depreciation=	4,250
	Interest Expense =	1,975
	Taxes & License =	750
	Advertising =	2,000
	Utilities =	4,725
	Packaging =	4,290
	Total	$ 42,990

Ans. (3)	Total Income reported =		$87,785

	i.e.
	Cash Sales =	87,535
	Less: Customer refunnds=	(1,750)
	Interest Income =	425
	Royalties =	1,575
	Total	$ 87,785

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