Enter the appropriate amount in each designated cell of Form 1120, U.S. Corporation Income Tax Return,...
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Enter the appropriate amount in each designated cell of Form 1120, U.S. Corporation Income Tax Return, below for Jackson, Inc., using the information provided in the exhibits. Enter all amounts as positive values. Enter a zero (0) if the amount is zero or if the cell should be left blank. 2020 Form 1120 item (description) Amount Income 123 1. Gross receipts or sales (Line 1a) 123 2. Returns and allowances (Line 1b) 123 3. Cost of goods sold (Line 2) 123 4. Gross profit (Line 3) 123 12. Total deductions (Line 27) 123 13. Special deductions (Line 29b) 123 5. Dividends and inclusions (Line 4) 123 6. Interest (Line 5) 123 7. Total income (Line 11) Deductions 123 8. Salaries and wages (Line 13) 123 9. Bad debts (Line 15) 123 10. Taxes and licenses (Line 17) 123 11. Charitable contributions (Line 19) To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Operating Expense Hi Jake, Please take a look at the following operating expense updates: 1. Jackson pledged $12,000 to charity for 2020 and paid the $12,000 in February 2021. 2. Estimate of $15,000 for bad debts. Actual bad debts for the year amounted to $11,500. 3. Key employee life insurance premiums of $4,000. Jackson is the beneficiary of the policies. 4. State income taxes of $22,000. 5. During 2020, Jackson estimated federal income tax payments of $27,000. These payments were debited to prepaid tax expense on Jackson's books. 6. Jackson declared and paid dividends of $17,000 during 2020. 7. Jackson was not subject to the alternative minimum tax in 2020. 8. Jackson paid its employees (nonofficers) $150,000 during the year. Thank you, Ethan CFO Ten Years of Industry Excellence To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Dividends update Jake, Hern Corp., an unaffiliated domestic corporation of which we own 35%, has released dividends. Please adjust our books accordingly. Thank you, Ethan CFO Ten Years of Industry Excellence Jackson, Inc., Condensed Income Statement for the Year Ended December 31, 2020 Before federal income tax, accrual-basis taxpayer $2,100,000 (1,400,000) $ 700,000 (375,000) $ 325,000 Sales Cost of sales Gross profit Operating expenses Operating income Other income (loss): $ 8,000 26,000 (8,500) Interest Dividends Net long-term capital loss Income before federal income tax 25,500 $ 350,500 Additional Information Interest arose from the following sources: U.S. Treasury notes Municipal arbitrage bonds Other municipal bonds $2,200 4,000 1,800 $8,000 Total interest Enter the appropriate amount in each designated cell of Form 1120, U.S. Corporation Income Tax Return, below for Jackson, Inc., using the information provided in the exhibits. Enter all amounts as positive values. Enter a zero (0) if the amount is zero or if the cell should be left blank. 2020 Form 1120 item (description) Amount Income 123 1. Gross receipts or sales (Line 1a) 123 2. Returns and allowances (Line 1b) 123 3. Cost of goods sold (Line 2) 123 4. Gross profit (Line 3) 123 12. Total deductions (Line 27) 123 13. Special deductions (Line 29b) 123 5. Dividends and inclusions (Line 4) 123 6. Interest (Line 5) 123 7. Total income (Line 11) Deductions 123 8. Salaries and wages (Line 13) 123 9. Bad debts (Line 15) 123 10. Taxes and licenses (Line 17) 123 11. Charitable contributions (Line 19) To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Operating Expense Hi Jake, Please take a look at the following operating expense updates: 1. Jackson pledged $12,000 to charity for 2020 and paid the $12,000 in February 2021. 2. Estimate of $15,000 for bad debts. Actual bad debts for the year amounted to $11,500. 3. Key employee life insurance premiums of $4,000. Jackson is the beneficiary of the policies. 4. State income taxes of $22,000. 5. During 2020, Jackson estimated federal income tax payments of $27,000. These payments were debited to prepaid tax expense on Jackson's books. 6. Jackson declared and paid dividends of $17,000 during 2020. 7. Jackson was not subject to the alternative minimum tax in 2020. 8. Jackson paid its employees (nonofficers) $150,000 during the year. Thank you, Ethan CFO Ten Years of Industry Excellence To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Dividends update Jake, Hern Corp., an unaffiliated domestic corporation of which we own 35%, has released dividends. Please adjust our books accordingly. Thank you, Ethan CFO Ten Years of Industry Excellence Jackson, Inc., Condensed Income Statement for the Year Ended December 31, 2020 Before federal income tax, accrual-basis taxpayer $2,100,000 (1,400,000) $ 700,000 (375,000) $ 325,000 Sales Cost of sales Gross profit Operating expenses Operating income Other income (loss): $ 8,000 26,000 (8,500) Interest Dividends Net long-term capital loss Income before federal income tax 25,500 $ 350,500 Additional Information Interest arose from the following sources: U.S. Treasury notes Municipal arbitrage bonds Other municipal bonds $2,200 4,000 1,800 $8,000 Total interest Enter the appropriate amount in each designated cell of Form 1120, U.S. Corporation Income Tax Return, below for Jackson, Inc., using the information provided in the exhibits. Enter all amounts as positive values. Enter a zero (0) if the amount is zero or if the cell should be left blank. 2020 Form 1120 item (description) Amount Income 123 1. Gross receipts or sales (Line 1a) 123 2. Returns and allowances (Line 1b) 123 3. Cost of goods sold (Line 2) 123 4. Gross profit (Line 3) 123 12. Total deductions (Line 27) 123 13. Special deductions (Line 29b) 123 5. Dividends and inclusions (Line 4) 123 6. Interest (Line 5) 123 7. Total income (Line 11) Deductions 123 8. Salaries and wages (Line 13) 123 9. Bad debts (Line 15) 123 10. Taxes and licenses (Line 17) 123 11. Charitable contributions (Line 19) To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Operating Expense Hi Jake, Please take a look at the following operating expense updates: 1. Jackson pledged $12,000 to charity for 2020 and paid the $12,000 in February 2021. 2. Estimate of $15,000 for bad debts. Actual bad debts for the year amounted to $11,500. 3. Key employee life insurance premiums of $4,000. Jackson is the beneficiary of the policies. 4. State income taxes of $22,000. 5. During 2020, Jackson estimated federal income tax payments of $27,000. These payments were debited to prepaid tax expense on Jackson's books. 6. Jackson declared and paid dividends of $17,000 during 2020. 7. Jackson was not subject to the alternative minimum tax in 2020. 8. Jackson paid its employees (nonofficers) $150,000 during the year. Thank you, Ethan CFO Ten Years of Industry Excellence To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Dividends update Jake, Hern Corp., an unaffiliated domestic corporation of which we own 35%, has released dividends. Please adjust our books accordingly. Thank you, Ethan CFO Ten Years of Industry Excellence Jackson, Inc., Condensed Income Statement for the Year Ended December 31, 2020 Before federal income tax, accrual-basis taxpayer $2,100,000 (1,400,000) $ 700,000 (375,000) $ 325,000 Sales Cost of sales Gross profit Operating expenses Operating income Other income (loss): $ 8,000 26,000 (8,500) Interest Dividends Net long-term capital loss Income before federal income tax 25,500 $ 350,500 Additional Information Interest arose from the following sources: U.S. Treasury notes Municipal arbitrage bonds Other municipal bonds $2,200 4,000 1,800 $8,000 Total interest Enter the appropriate amount in each designated cell of Form 1120, U.S. Corporation Income Tax Return, below for Jackson, Inc., using the information provided in the exhibits. Enter all amounts as positive values. Enter a zero (0) if the amount is zero or if the cell should be left blank. 2020 Form 1120 item (description) Amount Income 123 1. Gross receipts or sales (Line 1a) 123 2. Returns and allowances (Line 1b) 123 3. Cost of goods sold (Line 2) 123 4. Gross profit (Line 3) 123 12. Total deductions (Line 27) 123 13. Special deductions (Line 29b) 123 5. Dividends and inclusions (Line 4) 123 6. Interest (Line 5) 123 7. Total income (Line 11) Deductions 123 8. Salaries and wages (Line 13) 123 9. Bad debts (Line 15) 123 10. Taxes and licenses (Line 17) 123 11. Charitable contributions (Line 19) To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Operating Expense Hi Jake, Please take a look at the following operating expense updates: 1. Jackson pledged $12,000 to charity for 2020 and paid the $12,000 in February 2021. 2. Estimate of $15,000 for bad debts. Actual bad debts for the year amounted to $11,500. 3. Key employee life insurance premiums of $4,000. Jackson is the beneficiary of the policies. 4. State income taxes of $22,000. 5. During 2020, Jackson estimated federal income tax payments of $27,000. These payments were debited to prepaid tax expense on Jackson's books. 6. Jackson declared and paid dividends of $17,000 during 2020. 7. Jackson was not subject to the alternative minimum tax in 2020. 8. Jackson paid its employees (nonofficers) $150,000 during the year. Thank you, Ethan CFO Ten Years of Industry Excellence To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Dividends update Jake, Hern Corp., an unaffiliated domestic corporation of which we own 35%, has released dividends. Please adjust our books accordingly. Thank you, Ethan CFO Ten Years of Industry Excellence Jackson, Inc., Condensed Income Statement for the Year Ended December 31, 2020 Before federal income tax, accrual-basis taxpayer $2,100,000 (1,400,000) $ 700,000 (375,000) $ 325,000 Sales Cost of sales Gross profit Operating expenses Operating income Other income (loss): $ 8,000 26,000 (8,500) Interest Dividends Net long-term capital loss Income before federal income tax 25,500 $ 350,500 Additional Information Interest arose from the following sources: U.S. Treasury notes Municipal arbitrage bonds Other municipal bonds $2,200 4,000 1,800 $8,000 Total interest Enter the appropriate amount in each designated cell of Form 1120, U.S. Corporation Income Tax Return, below for Jackson, Inc., using the information provided in the exhibits. Enter all amounts as positive values. Enter a zero (0) if the amount is zero or if the cell should be left blank. 2020 Form 1120 item (description) Amount Income 123 1. Gross receipts or sales (Line 1a) 123 2. Returns and allowances (Line 1b) 123 3. Cost of goods sold (Line 2) 123 4. Gross profit (Line 3) 123 12. Total deductions (Line 27) 123 13. Special deductions (Line 29b) 123 5. Dividends and inclusions (Line 4) 123 6. Interest (Line 5) 123 7. Total income (Line 11) Deductions 123 8. Salaries and wages (Line 13) 123 9. Bad debts (Line 15) 123 10. Taxes and licenses (Line 17) 123 11. Charitable contributions (Line 19) To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Operating Expense Hi Jake, Please take a look at the following operating expense updates: 1. Jackson pledged $12,000 to charity for 2020 and paid the $12,000 in February 2021. 2. Estimate of $15,000 for bad debts. Actual bad debts for the year amounted to $11,500. 3. Key employee life insurance premiums of $4,000. Jackson is the beneficiary of the policies. 4. State income taxes of $22,000. 5. During 2020, Jackson estimated federal income tax payments of $27,000. These payments were debited to prepaid tax expense on Jackson's books. 6. Jackson declared and paid dividends of $17,000 during 2020. 7. Jackson was not subject to the alternative minimum tax in 2020. 8. Jackson paid its employees (nonofficers) $150,000 during the year. Thank you, Ethan CFO Ten Years of Industry Excellence To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Dividends update Jake, Hern Corp., an unaffiliated domestic corporation of which we own 35%, has released dividends. Please adjust our books accordingly. Thank you, Ethan CFO Ten Years of Industry Excellence Jackson, Inc., Condensed Income Statement for the Year Ended December 31, 2020 Before federal income tax, accrual-basis taxpayer $2,100,000 (1,400,000) $ 700,000 (375,000) $ 325,000 Sales Cost of sales Gross profit Operating expenses Operating income Other income (loss): $ 8,000 26,000 (8,500) Interest Dividends Net long-term capital loss Income before federal income tax 25,500 $ 350,500 Additional Information Interest arose from the following sources: U.S. Treasury notes Municipal arbitrage bonds Other municipal bonds $2,200 4,000 1,800 $8,000 Total interest Enter the appropriate amount in each designated cell of Form 1120, U.S. Corporation Income Tax Return, below for Jackson, Inc., using the information provided in the exhibits. Enter all amounts as positive values. Enter a zero (0) if the amount is zero or if the cell should be left blank. 2020 Form 1120 item (description) Amount Income 123 1. Gross receipts or sales (Line 1a) 123 2. Returns and allowances (Line 1b) 123 3. Cost of goods sold (Line 2) 123 4. Gross profit (Line 3) 123 12. Total deductions (Line 27) 123 13. Special deductions (Line 29b) 123 5. Dividends and inclusions (Line 4) 123 6. Interest (Line 5) 123 7. Total income (Line 11) Deductions 123 8. Salaries and wages (Line 13) 123 9. Bad debts (Line 15) 123 10. Taxes and licenses (Line 17) 123 11. Charitable contributions (Line 19) To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Operating Expense Hi Jake, Please take a look at the following operating expense updates: 1. Jackson pledged $12,000 to charity for 2020 and paid the $12,000 in February 2021. 2. Estimate of $15,000 for bad debts. Actual bad debts for the year amounted to $11,500. 3. Key employee life insurance premiums of $4,000. Jackson is the beneficiary of the policies. 4. State income taxes of $22,000. 5. During 2020, Jackson estimated federal income tax payments of $27,000. These payments were debited to prepaid tax expense on Jackson's books. 6. Jackson declared and paid dividends of $17,000 during 2020. 7. Jackson was not subject to the alternative minimum tax in 2020. 8. Jackson paid its employees (nonofficers) $150,000 during the year. Thank you, Ethan CFO Ten Years of Industry Excellence To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Dividends update Jake, Hern Corp., an unaffiliated domestic corporation of which we own 35%, has released dividends. Please adjust our books accordingly. Thank you, Ethan CFO Ten Years of Industry Excellence Jackson, Inc., Condensed Income Statement for the Year Ended December 31, 2020 Before federal income tax, accrual-basis taxpayer $2,100,000 (1,400,000) $ 700,000 (375,000) $ 325,000 Sales Cost of sales Gross profit Operating expenses Operating income Other income (loss): $ 8,000 26,000 (8,500) Interest Dividends Net long-term capital loss Income before federal income tax 25,500 $ 350,500 Additional Information Interest arose from the following sources: U.S. Treasury notes Municipal arbitrage bonds Other municipal bonds $2,200 4,000 1,800 $8,000 Total interest Enter the appropriate amount in each designated cell of Form 1120, U.S. Corporation Income Tax Return, below for Jackson, Inc., using the information provided in the exhibits. Enter all amounts as positive values. Enter a zero (0) if the amount is zero or if the cell should be left blank. 2020 Form 1120 item (description) Amount Income 123 1. Gross receipts or sales (Line 1a) 123 2. Returns and allowances (Line 1b) 123 3. Cost of goods sold (Line 2) 123 4. Gross profit (Line 3) 123 12. Total deductions (Line 27) 123 13. Special deductions (Line 29b) 123 5. Dividends and inclusions (Line 4) 123 6. Interest (Line 5) 123 7. Total income (Line 11) Deductions 123 8. Salaries and wages (Line 13) 123 9. Bad debts (Line 15) 123 10. Taxes and licenses (Line 17) 123 11. Charitable contributions (Line 19) To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Operating Expense Hi Jake, Please take a look at the following operating expense updates: 1. Jackson pledged $12,000 to charity for 2020 and paid the $12,000 in February 2021. 2. Estimate of $15,000 for bad debts. Actual bad debts for the year amounted to $11,500. 3. Key employee life insurance premiums of $4,000. Jackson is the beneficiary of the policies. 4. State income taxes of $22,000. 5. During 2020, Jackson estimated federal income tax payments of $27,000. These payments were debited to prepaid tax expense on Jackson's books. 6. Jackson declared and paid dividends of $17,000 during 2020. 7. Jackson was not subject to the alternative minimum tax in 2020. 8. Jackson paid its employees (nonofficers) $150,000 during the year. Thank you, Ethan CFO Ten Years of Industry Excellence To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Dividends update Jake, Hern Corp., an unaffiliated domestic corporation of which we own 35%, has released dividends. Please adjust our books accordingly. Thank you, Ethan CFO Ten Years of Industry Excellence Jackson, Inc., Condensed Income Statement for the Year Ended December 31, 2020 Before federal income tax, accrual-basis taxpayer $2,100,000 (1,400,000) $ 700,000 (375,000) $ 325,000 Sales Cost of sales Gross profit Operating expenses Operating income Other income (loss): $ 8,000 26,000 (8,500) Interest Dividends Net long-term capital loss Income before federal income tax 25,500 $ 350,500 Additional Information Interest arose from the following sources: U.S. Treasury notes Municipal arbitrage bonds Other municipal bonds $2,200 4,000 1,800 $8,000 Total interest Enter the appropriate amount in each designated cell of Form 1120, U.S. Corporation Income Tax Return, below for Jackson, Inc., using the information provided in the exhibits. Enter all amounts as positive values. Enter a zero (0) if the amount is zero or if the cell should be left blank. 2020 Form 1120 item (description) Amount Income 123 1. Gross receipts or sales (Line 1a) 123 2. Returns and allowances (Line 1b) 123 3. Cost of goods sold (Line 2) 123 4. Gross profit (Line 3) 123 12. Total deductions (Line 27) 123 13. Special deductions (Line 29b) 123 5. Dividends and inclusions (Line 4) 123 6. Interest (Line 5) 123 7. Total income (Line 11) Deductions 123 8. Salaries and wages (Line 13) 123 9. Bad debts (Line 15) 123 10. Taxes and licenses (Line 17) 123 11. Charitable contributions (Line 19) To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Operating Expense Hi Jake, Please take a look at the following operating expense updates: 1. Jackson pledged $12,000 to charity for 2020 and paid the $12,000 in February 2021. 2. Estimate of $15,000 for bad debts. Actual bad debts for the year amounted to $11,500. 3. Key employee life insurance premiums of $4,000. Jackson is the beneficiary of the policies. 4. State income taxes of $22,000. 5. During 2020, Jackson estimated federal income tax payments of $27,000. These payments were debited to prepaid tax expense on Jackson's books. 6. Jackson declared and paid dividends of $17,000 during 2020. 7. Jackson was not subject to the alternative minimum tax in 2020. 8. Jackson paid its employees (nonofficers) $150,000 during the year. Thank you, Ethan CFO Ten Years of Industry Excellence To: jake.accounting@jackson.com From: ethan.cfo@jackson.com Subject: Dividends update Jake, Hern Corp., an unaffiliated domestic corporation of which we own 35%, has released dividends. Please adjust our books accordingly. Thank you, Ethan CFO Ten Years of Industry Excellence Jackson, Inc., Condensed Income Statement for the Year Ended December 31, 2020 Before federal income tax, accrual-basis taxpayer $2,100,000 (1,400,000) $ 700,000 (375,000) $ 325,000 Sales Cost of sales Gross profit Operating expenses Operating income Other income (loss): $ 8,000 26,000 (8,500) Interest Dividends Net long-term capital loss Income before federal income tax 25,500 $ 350,500 Additional Information Interest arose from the following sources: U.S. Treasury notes Municipal arbitrage bonds Other municipal bonds $2,200 4,000 1,800 $8,000 Total interest
Expert Answer:
Answer rating: 100% (QA)
Form 1120 13 Gradable Items 2100000 This amount equals sales from Jacksons income statement 0 No ret... View the full answer
Related Book For
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
Posted Date:
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