Bruce Harrell (SSN 412-34-5670), 1018 Lexington Downs, Anywhere, CA 92345, is a 60% shareholder. Della Smith (SSN 412-34-5671), 4564 Yates Road, Anywhere, CA 92345, is a 40% shareholder. Bruce received a dividend of $60,000, and Della received a dividend of $40,000. Both of these dividends are in addition to their salaries.

Prepare Form 1120, pages 1? 5, for Harrell and Smith, Inc. Schedule D and Form 4562 can be omitted (the information given is not sufficient to complete these forms).

(Enter all amounts as positive unless otherwise indicated in the forms themselves. Round your intermediate computations and final answers to the nearest whole dollar value.)

Use the appropriate Corporate Tax Tables., for Harrell and Smith, Inc. Schedule D and Form 4562 can be omitted (the information given is not sufficient to complete these forms).

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HARRELL AND SMITH, INC. Comparative Balance Sheet As of December 31, 2014, and December 31, 2015 Assets Cash Investments Office equipment Accumulated depreciation (equipment) Building Accumulated depreciation (building) Total assets Liabilities and equity Notes payable Common stock Retained earnings Total liabilities and equity 12/31/14 $ 39,955 $ 45,459 258,456 169,125 225,000 310,759 (156,000) (165,379) 491,200 491,200 (37,232) (49,826) 12/31/15 $821,379 $801,338 $353,600 $335,458 10,000 10,000 455,880 457,779 $821,379 $801,338 Revenue Consulting income Interest income Rental income Dividend income from less-than-20%-owned domestic corporation(qualified) Long-term capital losses Total revenue HARRELL AND SMITH, INC. Income Statement For the Year Ending December 31, 2015 Expenses Salaries and wages (nonowners) Officers' salaries Harrell Smith Depreciation Interest expense Taxes and licenses Utilities Travel Meals and entertainment (100%) Auto $866,689 4,231 9,000 8,234 (8,200) $879,954 $253,000 225,000 150,000 21,973 20,127 24,051 15,500 11,850 12,452 18,500 Insurance (health) Accounting and legal Repairs Charitable contributions Payroll penalties Total expenses Net income 7,000 6,450 3,200 12,000 750 $781,853 $ 98,101 HARRELL AND SMITH, INC. Comparative Balance Sheet As of December 31, 2014, and December 31, 2015 Assets Cash Investments Office equipment Accumulated depreciation (equipment) Building Accumulated depreciation (building) Total assets Liabilities and equity Notes payable Common stock Retained earnings Total liabilities and equity 12/31/14 $ 39,955 $ 45,459 258,456 169,125 225,000 310,759 (156,000) (165,379) 491,200 491,200 (37,232) (49,826) 12/31/15 $821,379 $801,338 $353,600 $335,458 10,000 10,000 455,880 457,779 $821,379 $801,338 Revenue Consulting income Interest income Rental income Dividend income from less-than-20%-owned domestic corporation(qualified) Long-term capital losses Total revenue HARRELL AND SMITH, INC. Income Statement For the Year Ending December 31, 2015 Expenses Salaries and wages (nonowners) Officers' salaries Harrell Smith Depreciation Interest expense Taxes and licenses Utilities Travel Meals and entertainment (100%) Auto $866,689 4,231 9,000 8,234 (8,200) $879,954 $253,000 225,000 150,000 21,973 20,127 24,051 15,500 11,850 12,452 18,500 Insurance (health) Accounting and legal Repairs Charitable contributions Payroll penalties Total expenses Net income 7,000 6,450 3,200 12,000 750 $781,853 $ 98,101