Apex Corporation was incorporated on January 1, 2017. Here is the income & balance sheet statement for Apex Corp. for December 31, 2017.

Revenue from sales	40,000,000
Cost of goods sold	27,000,000
Gross profit	13,000,000
Other income
Income from investment in corporate stock	300,000
Interest income	20,000
Capital gains (losses)	-4000
Gain or loss from disposition of fixed assets	3,000
Miscellaneous income	50,000
Gross income	13,369,000
Expenses
Compensation	7,500,000
Stock option compensation	200,000
Advertising	1,350,000
Repairs and maintenance	75,000
Rent	22,000
Bad debt expense	41,000
Depreciation	1,400,000
Warranty expenses	70,000
Charitable donations	500,000
Meals	18,000
Goodwill impairment	30,000
Organizational expenditures	44,000
Other expenses	140,000
Total expenses	11,390,000
Income before taxes	1,979,000
Provision for income taxes	720,000
Net income before taxes	1,259,000

APEX Corporation Balance Sheet
	January 1, 2017 (in $)
Assets
Current Assets
Cash					580,000
Investment in Bonds
Accounts Receivable					470,000
Less Allowance for bad debts					-
Accounts Receivable (net)					470,000
Inventory					300,000
Total Current Assets					1,350,000
Non Current Assets
Fixed Assets					21,170,000
Less Accum. Depreciation					-
Fixed Assets (net)					21,170,000
Life Insurance
Investments in stocks					10,050,000
Goodwill					120,000
Total Noncurrent Assets					31,340,000
Total Assets					32,690,000
Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable					370,000
Reserve for Warranties					800,000
Total Current Liabilities					1,170,000
Non Current Liabilities
Long -term debt					19,000,000
Deferred compensation					-
Deferred tax Liabilities					-
Total Non Current Liabilities					19,000,000
Total Liabilities					20,170,000
Shareholders’ Equity
Common Stack ( $1 par value)					5,000,000
Additional Paid In Capital					7,520,000
retained earnings					-
Total Shareholders’ Equity					12,520,000
Total Liabilities and Shareholders’ Equity					32,690,000

Here are some other data:

1. The total compensation of officers is $2,500,000; other wages and salaries is $5,000,000.
2. Apex actually wrote off $27,000 of its accounts receivable as uncollectible.
3. Charitable contributions, $500,000, were all cash contributions.
4. Tax depreciation was $1,900,000.
5. Apex wrote off $30,000 of goodwill as impaired.
6. Apex’s dividends received deduction is $130,000
7. Apex made $480,000 in estimated tax payments.
8. Apex’s taxable interest income is $8,000.
9. Apex’s other deductions are 166,600.
10. 
    
11. For your final Portfolio Project, submit Form 1120, page 1-5, Schedule L, M-1, and M-2.
    
    
    

Answer rating: 100% (QA)

Solution Apex Corporation was incorporated on January 1 2017 Here is the income statement for Apex C... View the full answer