Please use the information below to complete Form 1120 and Schedule G for Form 1120. Blank...

  
 
 
 

Transcribed Image Text:

Please use the information below to complete Form 1120 and Schedule G for Form 1120. Blank forms can be found in the Hands On Assignment page or in Doc Sharing. If you have a tax-software package, please feel free to use the package but be aware that I will not be able to answer specific questions about the software package. GENERAL COMPANY INFORMATION| Margaret Brown and Joel Lee each own 50% of Designs Inc., with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400. Designs Inc.'s business address is 2134 Merry Lane, Las Cruces, NM, 08801. The telephone number is (575) 541-1122, and the e-mail address is designsinc@cdi.com. The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the an Internet location and might be unsafe. Click for more details. Enable Editing 17 The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the only full-time designers employed by Designs Inc., and they perform all of the design services of the corporation. Margaret's Social Security number is 123-45-6789, and Joel's Social Security number is 555-48-9898. Designs Inc. is an accrual method, calendar-year taxpayer. Designs Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 [depreciation]. Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory. During the year, the corporation distributed cash dividends of $10,000. The domestic production activities deduction (DPAD) for the year is $947. You are not provided enough detailed data to complete a Form 8903 (domestic production activities deduction). Enter the amount of the DPAD on line 25 of Form 1120. During the year, Designs Inc. made estimated tax payments of $1,500 each quarter to the IRS. from an Internet location and might be unsafe. Click for more details. Enable Editing 4. 7. Designs Inc. Income Statement Income Design fees Interest income (certificates of deposit) Total income $739,000 2,700 $741,700 Expenses Salaries-officers Margaret Brown Joel Lee $190,000 190,000 $380,000 61,000 Salaries-clerical Taxes Property Payroll 26,810 23,280 State income 3,140 2,390 55,620 16,340 Other miscellaneous Repairs and maintenance Meals and entertainment 9,800 Travel 5,600 Charitable contributions Interest expense on business loans Advertising Rental expense 1,200 31,100 17,650 9,270 35,910 Depreciation 4. 1. Depreciation Contributions to pension plans Employee benefit programs Accounting service Dues and subscriptions 35,910 31,000 21,170 13,790 5,100 Insurance 17,750 11,000 4,360 3,160 Legal and professional services Miscellaneous Telephone Total expenses (730,820) $ 10,880 (5,192) $ 5,688 Net income before taxes Federal income tax Net income per books Designs Inc. Balance Sheet Designs Inc. Balance Sheet Assets January 1, 2012 December 31, 2012 $ 35,610 45,100 134,000 $ 42,580 43,300 143,000 Cash Accounts receivable Certificates of deposit Depreciable assets Accumulated depreciation Land 210,922 (47,520) 221,488 (83,430) 42,000 42,000 Other assets 3,638 2,490 Total assets $ 423,750 $ 411,428 Liabilities and Equity January 1, 2012 December 31, 2012 $ 26,550 15,110 $ 27,497 17,853 Accounts payable Other current liabilities Mortgages Capital stock Retained earnings 126,000 200,000 114,300 200,000 51,778 $ 411,428 56,090 Total liabilities and equity $ 423,750 Please use the information below to complete Form 1120 and Schedule G for Form 1120. Blank forms can be found in the Hands On Assignment page or in Doc Sharing. If you have a tax-software package, please feel free to use the package but be aware that I will not be able to answer specific questions about the software package. GENERAL COMPANY INFORMATION| Margaret Brown and Joel Lee each own 50% of Designs Inc., with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400. Designs Inc.'s business address is 2134 Merry Lane, Las Cruces, NM, 08801. The telephone number is (575) 541-1122, and the e-mail address is designsinc@cdi.com. The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the an Internet location and might be unsafe. Click for more details. Enable Editing 17 The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the only full-time designers employed by Designs Inc., and they perform all of the design services of the corporation. Margaret's Social Security number is 123-45-6789, and Joel's Social Security number is 555-48-9898. Designs Inc. is an accrual method, calendar-year taxpayer. Designs Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 [depreciation]. Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory. During the year, the corporation distributed cash dividends of $10,000. The domestic production activities deduction (DPAD) for the year is $947. You are not provided enough detailed data to complete a Form 8903 (domestic production activities deduction). Enter the amount of the DPAD on line 25 of Form 1120. During the year, Designs Inc. made estimated tax payments of $1,500 each quarter to the IRS. from an Internet location and might be unsafe. Click for more details. Enable Editing 4. 7. Designs Inc. Income Statement Income Design fees Interest income (certificates of deposit) Total income $739,000 2,700 $741,700 Expenses Salaries-officers Margaret Brown Joel Lee $190,000 190,000 $380,000 61,000 Salaries-clerical Taxes Property Payroll 26,810 23,280 State income 3,140 2,390 55,620 16,340 Other miscellaneous Repairs and maintenance Meals and entertainment 9,800 Travel 5,600 Charitable contributions Interest expense on business loans Advertising Rental expense 1,200 31,100 17,650 9,270 35,910 Depreciation 4. 1. Depreciation Contributions to pension plans Employee benefit programs Accounting service Dues and subscriptions 35,910 31,000 21,170 13,790 5,100 Insurance 17,750 11,000 4,360 3,160 Legal and professional services Miscellaneous Telephone Total expenses (730,820) $ 10,880 (5,192) $ 5,688 Net income before taxes Federal income tax Net income per books Designs Inc. Balance Sheet Designs Inc. Balance Sheet Assets January 1, 2012 December 31, 2012 $ 35,610 45,100 134,000 $ 42,580 43,300 143,000 Cash Accounts receivable Certificates of deposit Depreciable assets Accumulated depreciation Land 210,922 (47,520) 221,488 (83,430) 42,000 42,000 Other assets 3,638 2,490 Total assets $ 423,750 $ 411,428 Liabilities and Equity January 1, 2012 December 31, 2012 $ 26,550 15,110 $ 27,497 17,853 Accounts payable Other current liabilities Mortgages Capital stock Retained earnings 126,000 200,000 114,300 200,000 51,778 $ 411,428 56,090 Total liabilities and equity $ 423,750 Please use the information below to complete Form 1120 and Schedule G for Form 1120. Blank forms can be found in the Hands On Assignment page or in Doc Sharing. If you have a tax-software package, please feel free to use the package but be aware that I will not be able to answer specific questions about the software package. GENERAL COMPANY INFORMATION| Margaret Brown and Joel Lee each own 50% of Designs Inc., with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400. Designs Inc.'s business address is 2134 Merry Lane, Las Cruces, NM, 08801. The telephone number is (575) 541-1122, and the e-mail address is designsinc@cdi.com. The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the an Internet location and might be unsafe. Click for more details. Enable Editing 17 The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the only full-time designers employed by Designs Inc., and they perform all of the design services of the corporation. Margaret's Social Security number is 123-45-6789, and Joel's Social Security number is 555-48-9898. Designs Inc. is an accrual method, calendar-year taxpayer. Designs Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 [depreciation]. Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory. During the year, the corporation distributed cash dividends of $10,000. The domestic production activities deduction (DPAD) for the year is $947. You are not provided enough detailed data to complete a Form 8903 (domestic production activities deduction). Enter the amount of the DPAD on line 25 of Form 1120. During the year, Designs Inc. made estimated tax payments of $1,500 each quarter to the IRS. from an Internet location and might be unsafe. Click for more details. Enable Editing 4. 7. Designs Inc. Income Statement Income Design fees Interest income (certificates of deposit) Total income $739,000 2,700 $741,700 Expenses Salaries-officers Margaret Brown Joel Lee $190,000 190,000 $380,000 61,000 Salaries-clerical Taxes Property Payroll 26,810 23,280 State income 3,140 2,390 55,620 16,340 Other miscellaneous Repairs and maintenance Meals and entertainment 9,800 Travel 5,600 Charitable contributions Interest expense on business loans Advertising Rental expense 1,200 31,100 17,650 9,270 35,910 Depreciation 4. 1. Depreciation Contributions to pension plans Employee benefit programs Accounting service Dues and subscriptions 35,910 31,000 21,170 13,790 5,100 Insurance 17,750 11,000 4,360 3,160 Legal and professional services Miscellaneous Telephone Total expenses (730,820) $ 10,880 (5,192) $ 5,688 Net income before taxes Federal income tax Net income per books Designs Inc. Balance Sheet Designs Inc. Balance Sheet Assets January 1, 2012 December 31, 2012 $ 35,610 45,100 134,000 $ 42,580 43,300 143,000 Cash Accounts receivable Certificates of deposit Depreciable assets Accumulated depreciation Land 210,922 (47,520) 221,488 (83,430) 42,000 42,000 Other assets 3,638 2,490 Total assets $ 423,750 $ 411,428 Liabilities and Equity January 1, 2012 December 31, 2012 $ 26,550 15,110 $ 27,497 17,853 Accounts payable Other current liabilities Mortgages Capital stock Retained earnings 126,000 200,000 114,300 200,000 51,778 $ 411,428 56,090 Total liabilities and equity $ 423,750 Please use the information below to complete Form 1120 and Schedule G for Form 1120. Blank forms can be found in the Hands On Assignment page or in Doc Sharing. If you have a tax-software package, please feel free to use the package but be aware that I will not be able to answer specific questions about the software package. GENERAL COMPANY INFORMATION| Margaret Brown and Joel Lee each own 50% of Designs Inc., with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400. Designs Inc.'s business address is 2134 Merry Lane, Las Cruces, NM, 08801. The telephone number is (575) 541-1122, and the e-mail address is designsinc@cdi.com. The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the an Internet location and might be unsafe. Click for more details. Enable Editing 17 The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the only full-time designers employed by Designs Inc., and they perform all of the design services of the corporation. Margaret's Social Security number is 123-45-6789, and Joel's Social Security number is 555-48-9898. Designs Inc. is an accrual method, calendar-year taxpayer. Designs Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 [depreciation]. Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory. During the year, the corporation distributed cash dividends of $10,000. The domestic production activities deduction (DPAD) for the year is $947. You are not provided enough detailed data to complete a Form 8903 (domestic production activities deduction). Enter the amount of the DPAD on line 25 of Form 1120. During the year, Designs Inc. made estimated tax payments of $1,500 each quarter to the IRS. from an Internet location and might be unsafe. Click for more details. Enable Editing 4. 7. Designs Inc. Income Statement Income Design fees Interest income (certificates of deposit) Total income $739,000 2,700 $741,700 Expenses Salaries-officers Margaret Brown Joel Lee $190,000 190,000 $380,000 61,000 Salaries-clerical Taxes Property Payroll 26,810 23,280 State income 3,140 2,390 55,620 16,340 Other miscellaneous Repairs and maintenance Meals and entertainment 9,800 Travel 5,600 Charitable contributions Interest expense on business loans Advertising Rental expense 1,200 31,100 17,650 9,270 35,910 Depreciation 4. 1. Depreciation Contributions to pension plans Employee benefit programs Accounting service Dues and subscriptions 35,910 31,000 21,170 13,790 5,100 Insurance 17,750 11,000 4,360 3,160 Legal and professional services Miscellaneous Telephone Total expenses (730,820) $ 10,880 (5,192) $ 5,688 Net income before taxes Federal income tax Net income per books Designs Inc. Balance Sheet Designs Inc. Balance Sheet Assets January 1, 2012 December 31, 2012 $ 35,610 45,100 134,000 $ 42,580 43,300 143,000 Cash Accounts receivable Certificates of deposit Depreciable assets Accumulated depreciation Land 210,922 (47,520) 221,488 (83,430) 42,000 42,000 Other assets 3,638 2,490 Total assets $ 423,750 $ 411,428 Liabilities and Equity January 1, 2012 December 31, 2012 $ 26,550 15,110 $ 27,497 17,853 Accounts payable Other current liabilities Mortgages Capital stock Retained earnings 126,000 200,000 114,300 200,000 51,778 $ 411,428 56,090 Total liabilities and equity $ 423,750 Please use the information below to complete Form 1120 and Schedule G for Form 1120. Blank forms can be found in the Hands On Assignment page or in Doc Sharing. If you have a tax-software package, please feel free to use the package but be aware that I will not be able to answer specific questions about the software package. GENERAL COMPANY INFORMATION| Margaret Brown and Joel Lee each own 50% of Designs Inc., with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400. Designs Inc.'s business address is 2134 Merry Lane, Las Cruces, NM, 08801. The telephone number is (575) 541-1122, and the e-mail address is designsinc@cdi.com. The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the an Internet location and might be unsafe. Click for more details. Enable Editing 17 The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the only full-time designers employed by Designs Inc., and they perform all of the design services of the corporation. Margaret's Social Security number is 123-45-6789, and Joel's Social Security number is 555-48-9898. Designs Inc. is an accrual method, calendar-year taxpayer. Designs Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 [depreciation]. Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory. During the year, the corporation distributed cash dividends of $10,000. The domestic production activities deduction (DPAD) for the year is $947. You are not provided enough detailed data to complete a Form 8903 (domestic production activities deduction). Enter the amount of the DPAD on line 25 of Form 1120. During the year, Designs Inc. made estimated tax payments of $1,500 each quarter to the IRS. from an Internet location and might be unsafe. Click for more details. Enable Editing 4. 7. Designs Inc. Income Statement Income Design fees Interest income (certificates of deposit) Total income $739,000 2,700 $741,700 Expenses Salaries-officers Margaret Brown Joel Lee $190,000 190,000 $380,000 61,000 Salaries-clerical Taxes Property Payroll 26,810 23,280 State income 3,140 2,390 55,620 16,340 Other miscellaneous Repairs and maintenance Meals and entertainment 9,800 Travel 5,600 Charitable contributions Interest expense on business loans Advertising Rental expense 1,200 31,100 17,650 9,270 35,910 Depreciation 4. 1. Depreciation Contributions to pension plans Employee benefit programs Accounting service Dues and subscriptions 35,910 31,000 21,170 13,790 5,100 Insurance 17,750 11,000 4,360 3,160 Legal and professional services Miscellaneous Telephone Total expenses (730,820) $ 10,880 (5,192) $ 5,688 Net income before taxes Federal income tax Net income per books Designs Inc. Balance Sheet Designs Inc. Balance Sheet Assets January 1, 2012 December 31, 2012 $ 35,610 45,100 134,000 $ 42,580 43,300 143,000 Cash Accounts receivable Certificates of deposit Depreciable assets Accumulated depreciation Land 210,922 (47,520) 221,488 (83,430) 42,000 42,000 Other assets 3,638 2,490 Total assets $ 423,750 $ 411,428 Liabilities and Equity January 1, 2012 December 31, 2012 $ 26,550 15,110 $ 27,497 17,853 Accounts payable Other current liabilities Mortgages Capital stock Retained earnings 126,000 200,000 114,300 200,000 51,778 $ 411,428 56,090 Total liabilities and equity $ 423,750 Please use the information below to complete Form 1120 and Schedule G for Form 1120. Blank forms can be found in the Hands On Assignment page or in Doc Sharing. If you have a tax-software package, please feel free to use the package but be aware that I will not be able to answer specific questions about the software package. GENERAL COMPANY INFORMATION| Margaret Brown and Joel Lee each own 50% of Designs Inc., with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400. Designs Inc.'s business address is 2134 Merry Lane, Las Cruces, NM, 08801. The telephone number is (575) 541-1122, and the e-mail address is designsinc@cdi.com. The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the an Internet location and might be unsafe. Click for more details. Enable Editing 17 The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the only full-time designers employed by Designs Inc., and they perform all of the design services of the corporation. Margaret's Social Security number is 123-45-6789, and Joel's Social Security number is 555-48-9898. Designs Inc. is an accrual method, calendar-year taxpayer. Designs Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 [depreciation]. Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory. During the year, the corporation distributed cash dividends of $10,000. The domestic production activities deduction (DPAD) for the year is $947. You are not provided enough detailed data to complete a Form 8903 (domestic production activities deduction). Enter the amount of the DPAD on line 25 of Form 1120. During the year, Designs Inc. made estimated tax payments of $1,500 each quarter to the IRS. from an Internet location and might be unsafe. Click for more details. Enable Editing 4. 7. Designs Inc. Income Statement Income Design fees Interest income (certificates of deposit) Total income $739,000 2,700 $741,700 Expenses Salaries-officers Margaret Brown Joel Lee $190,000 190,000 $380,000 61,000 Salaries-clerical Taxes Property Payroll 26,810 23,280 State income 3,140 2,390 55,620 16,340 Other miscellaneous Repairs and maintenance Meals and entertainment 9,800 Travel 5,600 Charitable contributions Interest expense on business loans Advertising Rental expense 1,200 31,100 17,650 9,270 35,910 Depreciation 4. 1. Depreciation Contributions to pension plans Employee benefit programs Accounting service Dues and subscriptions 35,910 31,000 21,170 13,790 5,100 Insurance 17,750 11,000 4,360 3,160 Legal and professional services Miscellaneous Telephone Total expenses (730,820) $ 10,880 (5,192) $ 5,688 Net income before taxes Federal income tax Net income per books Designs Inc. Balance Sheet Designs Inc. Balance Sheet Assets January 1, 2012 December 31, 2012 $ 35,610 45,100 134,000 $ 42,580 43,300 143,000 Cash Accounts receivable Certificates of deposit Depreciable assets Accumulated depreciation Land 210,922 (47,520) 221,488 (83,430) 42,000 42,000 Other assets 3,638 2,490 Total assets $ 423,750 $ 411,428 Liabilities and Equity January 1, 2012 December 31, 2012 $ 26,550 15,110 $ 27,497 17,853 Accounts payable Other current liabilities Mortgages Capital stock Retained earnings 126,000 200,000 114,300 200,000 51,778 $ 411,428 56,090 Total liabilities and equity $ 423,750 Please use the information below to complete Form 1120 and Schedule G for Form 1120. Blank forms can be found in the Hands On Assignment page or in Doc Sharing. If you have a tax-software package, please feel free to use the package but be aware that I will not be able to answer specific questions about the software package. GENERAL COMPANY INFORMATION| Margaret Brown and Joel Lee each own 50% of Designs Inc., with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400. Designs Inc.'s business address is 2134 Merry Lane, Las Cruces, NM, 08801. The telephone number is (575) 541-1122, and the e-mail address is designsinc@cdi.com. The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the an Internet location and might be unsafe. Click for more details. Enable Editing 17 The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the only full-time designers employed by Designs Inc., and they perform all of the design services of the corporation. Margaret's Social Security number is 123-45-6789, and Joel's Social Security number is 555-48-9898. Designs Inc. is an accrual method, calendar-year taxpayer. Designs Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 [depreciation]. Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory. During the year, the corporation distributed cash dividends of $10,000. The domestic production activities deduction (DPAD) for the year is $947. You are not provided enough detailed data to complete a Form 8903 (domestic production activities deduction). Enter the amount of the DPAD on line 25 of Form 1120. During the year, Designs Inc. made estimated tax payments of $1,500 each quarter to the IRS. from an Internet location and might be unsafe. Click for more details. Enable Editing 4. 7. Designs Inc. Income Statement Income Design fees Interest income (certificates of deposit) Total income $739,000 2,700 $741,700 Expenses Salaries-officers Margaret Brown Joel Lee $190,000 190,000 $380,000 61,000 Salaries-clerical Taxes Property Payroll 26,810 23,280 State income 3,140 2,390 55,620 16,340 Other miscellaneous Repairs and maintenance Meals and entertainment 9,800 Travel 5,600 Charitable contributions Interest expense on business loans Advertising Rental expense 1,200 31,100 17,650 9,270 35,910 Depreciation 4. 1. Depreciation Contributions to pension plans Employee benefit programs Accounting service Dues and subscriptions 35,910 31,000 21,170 13,790 5,100 Insurance 17,750 11,000 4,360 3,160 Legal and professional services Miscellaneous Telephone Total expenses (730,820) $ 10,880 (5,192) $ 5,688 Net income before taxes Federal income tax Net income per books Designs Inc. Balance Sheet Designs Inc. Balance Sheet Assets January 1, 2012 December 31, 2012 $ 35,610 45,100 134,000 $ 42,580 43,300 143,000 Cash Accounts receivable Certificates of deposit Depreciable assets Accumulated depreciation Land 210,922 (47,520) 221,488 (83,430) 42,000 42,000 Other assets 3,638 2,490 Total assets $ 423,750 $ 411,428 Liabilities and Equity January 1, 2012 December 31, 2012 $ 26,550 15,110 $ 27,497 17,853 Accounts payable Other current liabilities Mortgages Capital stock Retained earnings 126,000 200,000 114,300 200,000 51,778 $ 411,428 56,090 Total liabilities and equity $ 423,750 Please use the information below to complete Form 1120 and Schedule G for Form 1120. Blank forms can be found in the Hands On Assignment page or in Doc Sharing. If you have a tax-software package, please feel free to use the package but be aware that I will not be able to answer specific questions about the software package. GENERAL COMPANY INFORMATION| Margaret Brown and Joel Lee each own 50% of Designs Inc., with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400. Designs Inc.'s business address is 2134 Merry Lane, Las Cruces, NM, 08801. The telephone number is (575) 541-1122, and the e-mail address is designsinc@cdi.com. The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the an Internet location and might be unsafe. Click for more details. Enable Editing 17 The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the only full-time designers employed by Designs Inc., and they perform all of the design services of the corporation. Margaret's Social Security number is 123-45-6789, and Joel's Social Security number is 555-48-9898. Designs Inc. is an accrual method, calendar-year taxpayer. Designs Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 [depreciation]. Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory. During the year, the corporation distributed cash dividends of $10,000. The domestic production activities deduction (DPAD) for the year is $947. You are not provided enough detailed data to complete a Form 8903 (domestic production activities deduction). Enter the amount of the DPAD on line 25 of Form 1120. During the year, Designs Inc. made estimated tax payments of $1,500 each quarter to the IRS. from an Internet location and might be unsafe. Click for more details. Enable Editing 4. 7. Designs Inc. Income Statement Income Design fees Interest income (certificates of deposit) Total income $739,000 2,700 $741,700 Expenses Salaries-officers Margaret Brown Joel Lee $190,000 190,000 $380,000 61,000 Salaries-clerical Taxes Property Payroll 26,810 23,280 State income 3,140 2,390 55,620 16,340 Other miscellaneous Repairs and maintenance Meals and entertainment 9,800 Travel 5,600 Charitable contributions Interest expense on business loans Advertising Rental expense 1,200 31,100 17,650 9,270 35,910 Depreciation 4. 1. Depreciation Contributions to pension plans Employee benefit programs Accounting service Dues and subscriptions 35,910 31,000 21,170 13,790 5,100 Insurance 17,750 11,000 4,360 3,160 Legal and professional services Miscellaneous Telephone Total expenses (730,820) $ 10,880 (5,192) $ 5,688 Net income before taxes Federal income tax Net income per books Designs Inc. Balance Sheet Designs Inc. Balance Sheet Assets January 1, 2012 December 31, 2012 $ 35,610 45,100 134,000 $ 42,580 43,300 143,000 Cash Accounts receivable Certificates of deposit Depreciable assets Accumulated depreciation Land 210,922 (47,520) 221,488 (83,430) 42,000 42,000 Other assets 3,638 2,490 Total assets $ 423,750 $ 411,428 Liabilities and Equity January 1, 2012 December 31, 2012 $ 26,550 15,110 $ 27,497 17,853 Accounts payable Other current liabilities Mortgages Capital stock Retained earnings 126,000 200,000 114,300 200,000 51,778 $ 411,428 56,090 Total liabilities and equity $ 423,750 Please use the information below to complete Form 1120 and Schedule G for Form 1120. Blank forms can be found in the Hands On Assignment page or in Doc Sharing. If you have a tax-software package, please feel free to use the package but be aware that I will not be able to answer specific questions about the software package. GENERAL COMPANY INFORMATION| Margaret Brown and Joel Lee each own 50% of Designs Inc., with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400. Designs Inc.'s business address is 2134 Merry Lane, Las Cruces, NM, 08801. The telephone number is (575) 541-1122, and the e-mail address is designsinc@cdi.com. The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the an Internet location and might be unsafe. Click for more details. Enable Editing 17 The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the only full-time designers employed by Designs Inc., and they perform all of the design services of the corporation. Margaret's Social Security number is 123-45-6789, and Joel's Social Security number is 555-48-9898. Designs Inc. is an accrual method, calendar-year taxpayer. Designs Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 [depreciation]. Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory. During the year, the corporation distributed cash dividends of $10,000. The domestic production activities deduction (DPAD) for the year is $947. You are not provided enough detailed data to complete a Form 8903 (domestic production activities deduction). Enter the amount of the DPAD on line 25 of Form 1120. During the year, Designs Inc. made estimated tax payments of $1,500 each quarter to the IRS. from an Internet location and might be unsafe. Click for more details. Enable Editing 4. 7. Designs Inc. Income Statement Income Design fees Interest income (certificates of deposit) Total income $739,000 2,700 $741,700 Expenses Salaries-officers Margaret Brown Joel Lee $190,000 190,000 $380,000 61,000 Salaries-clerical Taxes Property Payroll 26,810 23,280 State income 3,140 2,390 55,620 16,340 Other miscellaneous Repairs and maintenance Meals and entertainment 9,800 Travel 5,600 Charitable contributions Interest expense on business loans Advertising Rental expense 1,200 31,100 17,650 9,270 35,910 Depreciation 4. 1. Depreciation Contributions to pension plans Employee benefit programs Accounting service Dues and subscriptions 35,910 31,000 21,170 13,790 5,100 Insurance 17,750 11,000 4,360 3,160 Legal and professional services Miscellaneous Telephone Total expenses (730,820) $ 10,880 (5,192) $ 5,688 Net income before taxes Federal income tax Net income per books Designs Inc. Balance Sheet Designs Inc. Balance Sheet Assets January 1, 2012 December 31, 2012 $ 35,610 45,100 134,000 $ 42,580 43,300 143,000 Cash Accounts receivable Certificates of deposit Depreciable assets Accumulated depreciation Land 210,922 (47,520) 221,488 (83,430) 42,000 42,000 Other assets 3,638 2,490 Total assets $ 423,750 $ 411,428 Liabilities and Equity January 1, 2012 December 31, 2012 $ 26,550 15,110 $ 27,497 17,853 Accounts payable Other current liabilities Mortgages Capital stock Retained earnings 126,000 200,000 114,300 200,000 51,778 $ 411,428 56,090 Total liabilities and equity $ 423,750 Please use the information below to complete Form 1120 and Schedule G for Form 1120. Blank forms can be found in the Hands On Assignment page or in Doc Sharing. If you have a tax-software package, please feel free to use the package but be aware that I will not be able to answer specific questions about the software package. GENERAL COMPANY INFORMATION| Margaret Brown and Joel Lee each own 50% of Designs Inc., with no other class of stock authorized. On June 6, 2009, they formed to provide design services. Their business activity code is 541400. Designs Inc.'s business address is 2134 Merry Lane, Las Cruces, NM, 08801. The telephone number is (575) 541-1122, and the e-mail address is designsinc@cdi.com. The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the an Internet location and might be unsafe. Click for more details. Enable Editing 17 The employer identification number is 11-1111111. Margaret is the president of the company, and Joel is the vice president. Margaret and Joel are the only full-time designers employed by Designs Inc., and they perform all of the design services of the corporation. Margaret's Social Security number is 123-45-6789, and Joel's Social Security number is 555-48-9898. Designs Inc. is an accrual method, calendar-year taxpayer. Designs Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 [depreciation]. Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory. During the year, the corporation distributed cash dividends of $10,000. The domestic production activities deduction (DPAD) for the year is $947. You are not provided enough detailed data to complete a Form 8903 (domestic production activities deduction). Enter the amount of the DPAD on line 25 of Form 1120. During the year, Designs Inc. made estimated tax payments of $1,500 each quarter to the IRS. from an Internet location and might be unsafe. Click for more details. Enable Editing 4. 7. Designs Inc. Income Statement Income Design fees Interest income (certificates of deposit) Total income $739,000 2,700 $741,700 Expenses Salaries-officers Margaret Brown Joel Lee $190,000 190,000 $380,000 61,000 Salaries-clerical Taxes Property Payroll 26,810 23,280 State income 3,140 2,390 55,620 16,340 Other miscellaneous Repairs and maintenance Meals and entertainment 9,800 Travel 5,600 Charitable contributions Interest expense on business loans Advertising Rental expense 1,200 31,100 17,650 9,270 35,910 Depreciation 4. 1. Depreciation Contributions to pension plans Employee benefit programs Accounting service Dues and subscriptions 35,910 31,000 21,170 13,790 5,100 Insurance 17,750 11,000 4,360 3,160 Legal and professional services Miscellaneous Telephone Total expenses (730,820) $ 10,880 (5,192) $ 5,688 Net income before taxes Federal income tax Net income per books Designs Inc. Balance Sheet Designs Inc. Balance Sheet Assets January 1, 2012 December 31, 2012 $ 35,610 45,100 134,000 $ 42,580 43,300 143,000 Cash Accounts receivable Certificates of deposit Depreciable assets Accumulated depreciation Land 210,922 (47,520) 221,488 (83,430) 42,000 42,000 Other assets 3,638 2,490 Total assets $ 423,750 $ 411,428 Liabilities and Equity January 1, 2012 December 31, 2012 $ 26,550 15,110 $ 27,497 17,853 Accounts payable Other current liabilities Mortgages Capital stock Retained earnings 126,000 200,000 114,300 200,000 51,778 $ 411,428 56,090 Total liabilities and equity $ 423,750