Prepare the current year 1120 for Oasis Computers based on the following information. Use the 2020 return
Question:
Prepare the current year 1120 for Oasis Computers based on the following information. Use the 2020 return from www.irs.gov
1. Gross receipts of $ 1,000,000
2. Cost of Goods Sold - $500,000
3. Depreciation on building - $6,000 (tax)
4. Bank interest income - $600
5. Salaries and wages $200,000
6. Additional depreciation on assets purchased during the current year (hint: problem is cumulative)
7. Life insurance premiums paid with the corporation as beneficiary - $500
8. For financial statement purposes, the reserve for bad debts has historically been 5% of gross receipts, or $50,000. Actual bad debts for this year was $45,000.
9. Interest expense $ 2,000
10. Advertising - $5,000
11. Meals provided during meetings with potential clients $3,000
12. Other deductions - $60,000
13. Total depreciation expense per financial statements was $7,000
Expert Answer:
1 Gross receipts of 1000000 2 Cost of Goods Sold 500000 3 Depreciation on building 6000 tax 4 Bank i... View the full answer
