Tammy Adams and Fernando Hernandez each own 50% of Custom Designs, Inc. (CDI). On May 6,...
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Tammy Adams and Fernando Hernandez each own 50% of Custom Designs, Inc. (CDI). On May 6, 2004, they formed CDI to provide architectural services. CDI's information is summarized as follows: • CDI's business address is 2120 Adobe Drive, Las Cruces, NM 88011; its employer identification number is 11-1111111, and the principal business activity code is 541310. + CDI's financial statement for 2019 is show below:+ Income Professional fees Long-term capital gain Short-term capital gain Long-term capital loss Dividends distributed from Gary Inc. (CDI ownership in Gary is 17%) Interest income+ State bonds $18,000 Corporate bonds 24,000 Life insurance proceeds on the death of a key employee Total income Expenses Salaries-officers + Tammy Adams: Fernando Hernandez: Salaries -clerical Taxes (state, local, and payroll) Advertising Rental expenses Repairs and maintenance 190,000+ 190,000+ Interest expenses:" On loan to purchase state bonds + On corporate bonds P Depreciation* (depreciation for tax purpose is $42,000) Business Meals Total expenses + Net income before taxes+ Taxe Income after taxe P P 739,000++ 5,000 8,000 6,000 20,000 + 42,000+ 500,000+ 1,308,000 380,000+ 61,000 55,620 17,650 P 9,270** 16,340+ 10,500+ 25,000€ 35,000 9,800** 620,180 687,820 144,442++ 543,378++ P P During 2019, CDI made estimated tax payment of $10,000 each quarter to the IRS. Prepare a Form 1120 page 1 and schedule M-1 on page 6 for CDI for tax year 2019 (Check figure: Taxable income: $168220) Tammy Adams and Fernando Hernandez each own 50% of Custom Designs, Inc. (CDI). On May 6, 2004, they formed CDI to provide architectural services. CDI's information is summarized as follows: • CDI's business address is 2120 Adobe Drive, Las Cruces, NM 88011; its employer identification number is 11-1111111, and the principal business activity code is 541310. + CDI's financial statement for 2019 is show below:+ Income Professional fees Long-term capital gain Short-term capital gain Long-term capital loss Dividends distributed from Gary Inc. (CDI ownership in Gary is 17%) Interest income+ State bonds $18,000 Corporate bonds 24,000 Life insurance proceeds on the death of a key employee Total income Expenses Salaries-officers + Tammy Adams: Fernando Hernandez: Salaries -clerical Taxes (state, local, and payroll) Advertising Rental expenses Repairs and maintenance 190,000+ 190,000+ Interest expenses:" On loan to purchase state bonds + On corporate bonds P Depreciation* (depreciation for tax purpose is $42,000) Business Meals Total expenses + Net income before taxes+ Taxe Income after taxe P P 739,000++ 5,000 8,000 6,000 20,000 + 42,000+ 500,000+ 1,308,000 380,000+ 61,000 55,620 17,650 P 9,270** 16,340+ 10,500+ 25,000€ 35,000 9,800** 620,180 687,820 144,442++ 543,378++ P P During 2019, CDI made estimated tax payment of $10,000 each quarter to the IRS. Prepare a Form 1120 page 1 and schedule M-1 on page 6 for CDI for tax year 2019 (Check figure: Taxable income: $168220)
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PART A Form 1120 Head as per Form 1120 Amount Gross Reeceipt Profit ... View the full answer
Related Book For
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian Edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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