"> (Solution) -BUSINESS INCOME TAX Forms to be turned in: Schedules C, J, K, L, M-1 & M-2 Form 1120: 5 pages Form 1125-A (COGS): 1 page Schedule G: 1 page... Paper Detail – Transwriters

(Solution) -BUSINESS INCOME TAX Forms to be turned in: Schedules C, J, K, L, M-1 & M-2 Form 1120: 5 pages Form 1125-A (COGS): 1 page Schedule G: 1 page...


Description

Answer Download


The Question

BUSINESS INCOME TAX

 

Forms to be turned in:

 

? Schedules C, J, K, L, M-1 & M-2

 

? Form 1120: 5 pages

 

? Form 1125-A (COGS): 1 page

 

? Schedule G: 1 page

 

? Form 1125-E: 1 page

 

? Compensation of Officers

 

Any other schedules/forms generated do not need to be turned in.

 

Check figures:

 

Total Income (line 11) 1,430,000

 

Taxable Income (line 30) 505,600

 

Amount of refund 3,096

 

End of tax year total assets

 

(Schedule L line15) 2,564,100

 


 

Due Date

 

Upload to : Tax Return #1 Dropbox by 11:59 p.m., Thursday, CT.

 

Question

 

During 2013, Pet Kingdom made estimated tax payments of $90,000 each quarter to

 


 

the IRS. Prepare a Form 1120 for Pet Kingdom for tax year 2013. Suggested software:

 


 

H&R BLOCK At Home.

 


 

2. On February 12, 2002, Nancy Trout and Delores Lake formed Kingfisher Corporation to

 


 

sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follows:

 


 

? Kingfisher?s business address is 1717 Main Street, Ely, MN 55731; its telephone number is (218) 555-2211; and its e-mail address is k..[email protected]

 


 

? The employer identification number is 11-1111111, and the principal business activity

 


 

code is 451110.

 


 

? Nancy owns 50% of the common stock and is president of the company, and Delores

 


 

owns 50% of the common stock and is vice president of the company. No other class

 


 

of stock is authorized.

 


 

? Both Nancy and Delores are full-time employees of Kingfisher. Nancy?s Social Security number is 123-45-6789, and Delores?s Social Security number is 987-65-4321.

 


 

? Kingfisher is an accrual method, calendar year taxpayer. Inventories are determined

 


 

using FIFO and the lower of cost or market method. Kingfisher uses the straight-line

 


 

method of deprecation for book purposes and accelerated depreciation (MACRS)

 


 

for tax purposes.

 


 

? During 2013, the corporation distributed cash dividends of $80,000.

 


 

Kingfisher?s financial statements for 2013 are shown below.

 


 

Income Statement

 

Income

 


 

Gross sales $2,408,000

 


 

Sales returns and allowances (80,000)

 


 

Net sales $2,328,000

 


 

Cost of goods sold (920,000)

 


 

Gross profit $1,408,000

 


 

Dividends received from stock

 


 

investments in less-than-20%-owned

 


 

U.S. corporations 12,000

 


 

Interest income

 


 

State bonds $14,000

 

Certificates of deposit 10,000 24,000

 


 

Total income $1,444,000

 


 

Expenses

 


 

Salaries?officers

 


 

Nancy Trout $160,000

 


 

Delores Lake 160,000 $320,000

 


 

Salaries?clerical and sales 290,000

 


 

Taxes (state, local, and payroll) 85,000

 


 

Repairs and maintenance 56,000

 


 

Interest expense:

 


 

Business loans $12,000

 


 

Loan to purchase state bonds 8,000 20,000

 


 

Advertising 6,000

 


 

Rental expense 68,000

 


 

Depreciation* 40,000

 


 

Charitable contributions 15,000

 


 

Employee benefit programs 24,000

 


 

Premiums on term life insurance policies

 


 

on lives of Nancy Trout and Delores

 


 

Lake; Kingfisher is the designated

 

beneficiary 16,000

 

Total expenses ( 940,000)

 

Net income before taxes $504,000

 


 

Federal income tax (171,904)

 

Net income per books $332,096

 

* You are not provided enough detailed information to complete a Form 4562 (depreciation). If you solve this problem using H&R BLOCK At Home, enter the amount of deprecation on line 20 of Form 1120.

 

Balance Sheet

 

Assets January 1, 2013 December 31, 2013

 

Cash $380,000 $335,524

 


 

Trade notes and accounts receivable 308,400 480,280

 


 

Inventories 900,000 1,012,000

 


 

State bonds 160,000 160,000

 


 

Federal income tax refund -0- 3,096

 


 

Certificates of deposit 140,000 140,000

 


 

Stock investments 300,000 300,000

 


 

Building and other depreciable assets 240,000 240,000

 


 

Accumulated depreciation (88,800) (128,800)

 


 

Land 20,000 20,000

 


 

Other assets 3,600 2,000

 


 

Total assets $2,363,200 $2,564,100

 


 

Liabilities and Equity January 1, 2013 December 31, 2013

 


 

Accounts payable $300,000 $299,104

 


 

Other current liabilities 80,300 40,000

 


 

Mortgages 210,000 200,000

 


 

Capital stock 500,000 500,000

 


 

Retained earnings 1,272,900 1,524,996

 


 

Total liabilities and equity $2,363,200 $2,564,100

 


 

During 2013, Kingfisher made estimated tax payments of $43,750 each quarter to the

 


 

IRS. Prepare a Form 1120 for Kingfisher for tax year 2013. Suggested software: H&R

 


Solution details

Solution #0009147722273

(Solution) -BUSINESS INCOME TAX Forms to be turned in: Schedules C, J, K, L, M-1 & M-2 Form 1120: 5 pages Form 1125-A (COGS): 1 page Schedule G: 1 page....zip

Uploaded by: Tutor

Answer rating:

This paper was answered on 10-Jan-2018

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Jan 10, 2018

EXPERT

Tutor

ANSWER RATING

TUTORIAL SOLUTIONS

We have high quality solutions you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

DO MY HOMEWORK?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a new homework help. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR ORDER WILL BE DELIVERED WITHIN A DEADLINE.

Order Now