help with corporate tax return form 1120, 4626

Notes: 1. AMI has a capital loss carryover to this year from last year in the amount of $500 2. AMI's inventory-related purchases during the year were 61.134700 AM vs is inventory based on cost using the FIFO inventory cost flow method. As the rules of $263A do not apply to AMI 3. Or the $15,000 interest income, $2,500 was from a Cay of Fremont bond his 2018 $3,500 was from a Pleasanton city bond issued in 2019. 53.900 was from a US Treary bond, and the remaining $6,000 was from a money market account 4. AMI sold equipment for $10,000. It originally purchased the equipment for $12.00 mod. through the date of the sale, had recorded a cumulative total of $4.000 of book depreciation on the asset and a cumulative total of 56.000 of tax deprecation. For tax purposes, the entire gain was recaptured as ordinary income under 1245 5. AMI's dividend income came from Simon's Sheet Music AMI owned 15.000 shares of the stock in Simon's Sheet Music (SSM) at the beginning of the year. This represented 15 percent of the SSM outstanding stock. 6. On July 22, 2021, AMI sold 2.500 shares of its Simon's Sheet Music stock for 533,900. It had originally purchased these shares on April 24, 2016, for $25,000. After the sale, AMI owned 12.5 percent of Simon's Sheet Music 7. AMI's compensation is as follows: Officers, S600.000 Other, $700,000 . 8. AMI wrote off $10,000 in accounts receivable as uncollectible during the year 9. Tax depreciation was $31.000. None of the depreciation should be claimed on Form 1125A. 10. Of the $62,000 of interest expense. S56,000 was from the mortgage on AMI's building and the remaining S6,000 of interest was from business-related loans. 11. The pension expense is the same for both book and tax purposes. 12. Other expenses include $3,000 for premiums paid on term life insurance policies for which AMI is the beneficiary. The policies cover the lives of Alvin and Theona The following i AMaudited income statement for 2021 All Income Statement For vear ending December 11, 2021 Revenue from sales $3.420,000 Sales returns and allowance 140.000) Cost of goods sold 14.00) Gross profit from operations $ 2.546.000 Other income: Capital gains $ 8.000 Gain from disposition of fixed assets Dividend income 12.000 Interest income 15.00 Gross income 52.383.000 Expenses: Compensation S(1.300.000 Depreciation (20.000) Bad debt expense (15,000) Meals (fully deductible) Maintenance Charitable donations (27.000) Property taxes (45.000 State income taxes (60.000) Other taxes (56.000) Interest (62.000) Advertising (44,000) Professional services (32,000) Pension expense - 40,000) Supplies (6.000) Other expenses (38000) Total expenses (1.757.000) Income before taxes 826,000 Federal income tax expense (260,000) Net income after taxes +2.50 000 $ 568 500 taxes 266,000 Complete Alvin's Music Inc.'s (AM1) 2021 Form 1120. Schedule D, and Schedule G (if applicable) using the information provided below. Neither Form 4562 for depreciation nor Form 4797 for the sale of the equipment is required. Include the amount of tax depreciation and the tax gain on the equipment sale given in the problem (or determined from information given in the problem) on the appropriate lines on the first page of Form 1120. Forms 1125-A and 1125-E are not required. If any information is missing, use reasonable assumptions to fill in the gaps. The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms. Facts: Alvin's Music Inc. (AMI) was formed in 2011 by Alvin Jones and Theona Smith. Alvin and Theona officially incorporated their store on June 12, 2012. AMI sells (retail) all kinds of music- related products including musical instruments, sheet music, CDs, and DVDs. Alvin owns 60 percent of the outstanding common stock of AMI and Theona owns the remaining 40 percent. . o o o AMI is located at 355 Music Way, East Palo Alto, California 94303. AMI's Employer Identification Number is 29-5748859. AMI's business activity is retail sales of music-related products. Its business activity code is 451140. Officers of the corporation are as follows: Alvin is the chief executive officer and president (Social Security number 123-45- 6789). Theona is the executive vice president (Social Security number 978-65-4321). Gwen Givens is the vice president over operations Carlson Bannister is the secretary All officers devote 100 percent of their time to the business and all officers are U.S. citizens. Neither Gwen nor Carlson owns any stock in AMI. AMI uses the accrual method of accounting and has a calendar year-end. AMI made payments that require Form 1099s, and will file the Form 1099s before the tax return is filed. AMI made four equal estimated tax payments of $43,000 each. Its tax liability last year was $175,000. If it has overpaid its federal tax liability, AMI would like to receive a O . refund. McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC Notes: 1. AMI has a capital loss carryover to this year from last year in the amount of $500 2. AMI's inventory-related purchases during the year were 61.134700 AM vs is inventory based on cost using the FIFO inventory cost flow method. As the rules of $263A do not apply to AMI 3. Or the $15,000 interest income, $2,500 was from a Cay of Fremont bond his 2018 $3,500 was from a Pleasanton city bond issued in 2019. 53.900 was from a US Treary bond, and the remaining $6,000 was from a money market account 4. AMI sold equipment for $10,000. It originally purchased the equipment for $12.00 mod. through the date of the sale, had recorded a cumulative total of $4.000 of book depreciation on the asset and a cumulative total of 56.000 of tax deprecation. For tax purposes, the entire gain was recaptured as ordinary income under 1245 5. AMI's dividend income came from Simon's Sheet Music AMI owned 15.000 shares of the stock in Simon's Sheet Music (SSM) at the beginning of the year. This represented 15 percent of the SSM outstanding stock. 6. On July 22, 2021, AMI sold 2.500 shares of its Simon's Sheet Music stock for 533,900. It had originally purchased these shares on April 24, 2016, for $25,000. After the sale, AMI owned 12.5 percent of Simon's Sheet Music 7. AMI's compensation is as follows: Officers, S600.000 Other, $700,000 . 8. AMI wrote off $10,000 in accounts receivable as uncollectible during the year 9. Tax depreciation was $31.000. None of the depreciation should be claimed on Form 1125A. 10. Of the $62,000 of interest expense. S56,000 was from the mortgage on AMI's building and the remaining S6,000 of interest was from business-related loans. 11. The pension expense is the same for both book and tax purposes. 12. Other expenses include $3,000 for premiums paid on term life insurance policies for which AMI is the beneficiary. The policies cover the lives of Alvin and Theona The following i AMaudited income statement for 2021 All Income Statement For vear ending December 11, 2021 Revenue from sales $3.420,000 Sales returns and allowance 140.000) Cost of goods sold 14.00) Gross profit from operations $ 2.546.000 Other income: Capital gains $ 8.000 Gain from disposition of fixed assets Dividend income 12.000 Interest income 15.00 Gross income 52.383.000 Expenses: Compensation S(1.300.000 Depreciation (20.000) Bad debt expense (15,000) Meals (fully deductible) Maintenance Charitable donations (27.000) Property taxes (45.000 State income taxes (60.000) Other taxes (56.000) Interest (62.000) Advertising (44,000) Professional services (32,000) Pension expense - 40,000) Supplies (6.000) Other expenses (38000) Total expenses (1.757.000) Income before taxes 826,000 Federal income tax expense (260,000) Net income after taxes +2.50 000 $ 568 500 taxes 266,000 Complete Alvin's Music Inc.'s (AM1) 2021 Form 1120. Schedule D, and Schedule G (if applicable) using the information provided below. Neither Form 4562 for depreciation nor Form 4797 for the sale of the equipment is required. Include the amount of tax depreciation and the tax gain on the equipment sale given in the problem (or determined from information given in the problem) on the appropriate lines on the first page of Form 1120. Forms 1125-A and 1125-E are not required. If any information is missing, use reasonable assumptions to fill in the gaps. The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms. Facts: Alvin's Music Inc. (AMI) was formed in 2011 by Alvin Jones and Theona Smith. Alvin and Theona officially incorporated their store on June 12, 2012. AMI sells (retail) all kinds of music- related products including musical instruments, sheet music, CDs, and DVDs. Alvin owns 60 percent of the outstanding common stock of AMI and Theona owns the remaining 40 percent. . o o o AMI is located at 355 Music Way, East Palo Alto, California 94303. AMI's Employer Identification Number is 29-5748859. AMI's business activity is retail sales of music-related products. Its business activity code is 451140. Officers of the corporation are as follows: Alvin is the chief executive officer and president (Social Security number 123-45- 6789). Theona is the executive vice president (Social Security number 978-65-4321). Gwen Givens is the vice president over operations Carlson Bannister is the secretary All officers devote 100 percent of their time to the business and all officers are U.S. citizens. Neither Gwen nor Carlson owns any stock in AMI. AMI uses the accrual method of accounting and has a calendar year-end. AMI made payments that require Form 1099s, and will file the Form 1099s before the tax return is filed. AMI made four equal estimated tax payments of $43,000 each. Its tax liability last year was $175,000. If it has overpaid its federal tax liability, AMI would like to receive a O . refund. McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC