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

ekkarill92 answered 2 years ago

What’s are the differences between a corporation’s income statement and it’s Form 1120?

QUESTION 17 During the current year, Z Corporation accrued income and expenses as follows: Gross income...

QUESTION 17 During the current year, Z Corporation accrued income and expenses as follows: Gross income from Business $1,000 Dividends on Apple Stock 300 Interest on State Bonds 300 Capital Gain 300 Total 2,400 Deductible Business Expenses 1,290 Non-Capital Expenses, Non Deductible under 162(e) 270 Capital Losses 438 Total 1,998 Net $ 402 a. For the calculation of earnings and profits (E&P), net capital loss is currently deductible. b. Accrued corporate tax does not reduce E&P. c. The DRD...

Debella Corporation's contribution format income statement for July follows: Sales $ 1,568,800 Variable expenses 943,400 Contribution...

Debella Corporation's contribution format income statement for July follows: Sales $ 1,568,800 Variable expenses 943,400 Contribution margin 625,400 Fixed expenses 354,000 Net operating income $ 271,400 Debella has no beginning or ending inventories. They produced and sold 10,600 units during July. Required: a. What is Debella's contribution margin ratio? (Enter as a percentage, rounded to 1 decimal place.) b. What is Debella's contribution margin per unit? c. What is Debella's break-even in units? d. If sales...

Corporation (Form 1120) Fall 2018 Rick Smith, Bill Thomas, Diane Asche, and Jill Renteria are equal...

Corporation (Form 1120) Fall 2018 Rick Smith, Bill Thomas, Diane Asche, and Jill Renteria are equal owners in “STAR, Inc.” – a corporation engaged in HR consulting. Pertinent information regarding STAR is summarized below. • Social security numbers are as follows; Rick – 648-98-4321; Bill – 486-63-4297; Diane – 855-21-1750; and Jill – 896-49-2341. Rick is the President of the company. • The address of the company is 2835 Bay View Drive, Wilmington, NC 26812. • The company was incorporated...

During the current year, Heaton Corporation which properly files a Form 1120 (C-corp) tax return is...

During the current year, Heaton Corporation which properly files a Form 1120 (C-corp) tax return is totally liquidated. Upon liquidation Heaton Corporation distributes its only asset, land to Paul, who is the sole shareholder. On the date of distribution, the land has a basis to Heaton Corporation of $250,000, a fair market value of $650,000, and is subject to a liability of $300,000. Paul, who takes the land subject to the liability, has a basis of $135,000 in his Heaton...

Part 2: Schedule M1 (CT1) and M2 (CT2) For Rocky Mountain Equipment Corporation Form 1120-F The...

Part 2: Schedule M1 (CT1) and M2 (CT2) For Rocky Mountain Equipment Corporation Form 1120-F The Rocky Mountain Equipment Corporation, a Colorado Corporation, was formed by two Colorado State University business school graduates. The Rocky Mountain Equipment Corporation incorporated on October 20, 1974. The main line of business is selling recreational equipment to outdoor enthusiasts. Starting in their parents’ garage, they have grown the corporation to a multimillion dollar business. To comply with accounting requirements, the company uses an accrual...

Evening Story Corporation has sales of $4,263,098;income tax of $594,2394, selling, general and adminstrative expenses of...

Evening Story Corporation has sales of $4,263,098;income tax of $594,2394, selling, general and adminstrative expenses of $223,070; depreciation of $379,926; cost of goods sold of $2,777,954 and interest expense of $122,806. What is firms gross profit?

The July contribution format income statement of Doxtater Corporation appears below: Sales $ 564,400 Variable expenses...

The July contribution format income statement of Doxtater Corporation appears below: Sales $ 564,400 Variable expenses 312,800 Contribution margin 251,600 Fixed expenses 193,800 Net operating income $ 57,800 If the company's sales increase by 19%, its net operating income should increase by about:

Operating Cash Flows, Direct Method The income statement for Piura Merchandising Corporation is as follows: Piura...

Operating Cash Flows, Direct Method The income statement for Piura Merchandising Corporation is as follows: Piura Merchandising Corporation Income Statement At December 31, 20X2 Revenues $1,490,000 Cost of goods sold Beginning inventory $430,000 Purchases 755,000 Ending inventory (205,000) (980,000) Depreciation expense (53,000) Amortization of patent (20,500) Wages expense (74,000) Insurance expense (38,500) Income before taxes $324,000 Income taxes (all current) (106,000) Net income $218,000 Other information is as follows: Accounts payable decreased by $23,000 during the year. Accounts receivable increased...

Evening Story Corporation has sales of $4,897,218; income tax of $342,472; the selling, general and administrative expenses of $283,095

Evening Story Corporation has sales of $4,897,218; income tax of $342,472; the selling, general and administrative expenses of $283,095; depreciation of $394,712; cost of goods sold of $2,453,113; and interest expense of $138,704. Calculate the amount of the firm’s gross profit.

Question