The financial accounting balance sheet for Zane, a retail sales corporation, as of the end of the current year is as follows:

Assets
Cash.................................................................................................................$ 50,000
Accounts receivable..........................................................................................20,000
Inventory............................................................................................................10,000
Land....................................................................................................................20,000
Buildings (net of $30,000 accumulated depreciation)...............................100,000
Equipment (net of $50,000 accumulated depreciation)............................150,000
Intangibles.........................................................................................................60,000
Total assets...................................................................................................$410,000
Liabilities & Owner’s Equity
Accounts payable..........................................................................................$ 40,000
Mortgage payable............................................................................................40,000
Long-term debt................................................................................................60,000
Capital stock...................................................................................................100,000
Retained earnings.........................................................................................170,000^a
Total liabilities and stockholders’ equity..................................................$410,000
^aThe retained earnings balance at the beginning of the current year was $70,000. Beginning inventory was $15,000. Dividends in the amount of $25,000 were paid.

Using the accrual method Zane reports the following financial accounting operating results for the current year:
Sales.............................................................................................................................$550,000
Minus: Costs of goods sold.......................................................................................(350,000)
Gross profit.................................................................................................................$200,000
Dividend income from a 20%-owned domestic corporation....................................75,000
Net long-term capital gains.........................................................................................150,000
Total income...............................................................................................................$425,000
Expenses:
Salaries (including officer’s salary of $40,000)........................................................$120,000
Repairs.............................................................................................................................30,000
Bad debts.........................................................................................................................10,000
State and local taxes.......................................................................................................20,000
Amortization......................................................................................................................5,000
Contributions..................................................................................................................35,000
Depreciation (straight-line)............................................................................................40,000
Total expenses (before federal income tax expense)............................................$260,000
Operating profit..........................................................................................................$165,000
Minus: Provision for federal income taxes................................................................(40,000)
Net income..................................................................................................................$125,000
All dividends qualify for the dividends-received deduction. In addition, the following items should be taken into account:
Current-year estimated tax payments................................................$15,000
MACRS depreciation for tax purposes..................................................60,000

Prepare a current year Form 1120 (U.S. Corporation Income Tax Return) for Zane. Disregard beginning-of-the-year balance sheet amounts other than retained earnings. Also, leave spaces blank on Form 1120 for information not provided.