Corporate Tax Return Problem Fall $2024$

On May $1,1989,$ Brendan McLeod and Duncan Ryan formed Angler Corporation to sell

fishing tackle. Pertinent information regarding Angler is summarized as follows:

$$ The business address is $3027$ Woodland Ridge Blvd$.,$ Baton Rouge, Louisiana $70816.$

$$ The employer identification number is $75-3392543$; the principal business activity

code is $451110.$

$$ Brendan and Duncan each own one$-$half of the outstanding common stock; no other

class of stock is authorized. Brendan is president of the company, and Duncan is

secretary$-$treasurer. Both are full$-$time employees of the corporation, and each

receives a salary of $$165,213.$ Brendan$$s Social Security number is $145-26-2593.$

Duncan$$s Social Security number is $287-43-4945.$

$$ The corporation uses the accrual method of accounting and reports on a calendar

basis. Inventories are determined by using the lower of cost or market method. For

book purposes, the straight$-$line method of depreciation is used.

$$ MACRS depreciation was $$259,160$ for the year.

$$ During $2023,$ the corporation distributed a cash dividend of $$93,703.$

Selected portions of Angler$$s profit and loss statement of $2023$ reflect the following

debits and credits:

Account Debit Credit

Gross sales $$2,465,869$

Sales returns and allowances $$93,703$

Cost of goods sold $1,378,421$

Dividends received from stock investments in

less than $20\%$ owned U$.$S$.$ corporations $152,884$

Interest income

State bonds $29,590$

Certificates of deposit $17,261$

Premiums on term life insurance

policies on the lives of Brendan

and Duncan; Angler Corporation

is the designated beneficiary $19,727$

Salaries$-$officers $330,426$

Salaries$-$clerical and sales $266,314$

Taxes $($state$,$ local, and payroll$)34,522$

Repairs $17,261$

Interest expense $14,795$

Donations to DNC $7,398$

Advertising $4,932$

Rental Expense $27,125$

Depreciation $67,193$

ACCT $4611$ Dr$.$ Furner

A comparative balance sheet for Angler Corporation reveals the following information:

Assets December $31,2022$ December $31,2023$

Cash $$480,000$ $$547,527$

Trade notes and accounts receivable $808,200739,761$

Inventories $600,000678,114$

Certificates of Deposit $130,000130,000$

State bonds $170,000170,000$

Prepaid Federal tax $---616$

Buildings and other depreciable assets $240,000335,967$

Accumulated depreciation $(88,800)(155,993)$

Land $20,00020,000$

Other assets $3,6001,000$

Total assets $$2,363,000$ $$2,466,992$

Liabilities and Equity

Accounts payable $$340,000$ $$221,928$

Other current liabilities $57,86054,249$

Mortgages $220,000180,008$

Capital stock $500,000500,000$

Retained earnings $1,245,1401,510,807$

Total liabilities and equity $$2,363,000$ $$2,466,992$

Net income per books $($before any income tax accrual$)$ $$403,787$

Income Tax Expense $44,417$

Net Income $359,370$

During $2023,$ Angler Corporation made estimated tax payments of $$44,417$ to the

IRS. Prepare a Form $1120$ for Angler Corporation for tax year $2023.$ Include Forms

$1125-$A$,1125-$E and Schedule G $($Form $1120)$

Just need the first $3$ pages of form $1120$ filled out