Tax Return #$2$Spring $2024$ Awesome Apparel financial statements for $2023$ are shown on below:Sales $4,900,000$Sales Returns and Allowances $460,000$Net Sales $4,440,000$Cost of Goods Sold $1,940,000$Gross Profit $2,500,000$Interest Income Certificate of deposit$16,000$ State Bonds$112,000128,000$Dividend Income $45,000$Total Income $2,673,000$Expenses Salaries $-$officers Billy Davis$290,000$ Steven Fox$290,000580,000$ Salaries and wages other $420,000$ Life insurance premiums on two owners$/$officers Awesome Apparel is the beneficiary $32,000$ Repairs and Maintenance $89,000$ Taxes and licenses $190,000$ Interest Expense Loans to acquire state bonds $171,000$ Other $10,000$ Advertising $56,000$ Rent expense $99,000$ Charitable contributions $20,000$ Depreciation $90,000*$ Employee benefit program $58,000$ Total Expenses $1,815,000$Net Income Before Taxes $858,000$Federal Income Taxes $190,365$Net Income Per Books $667,635*$Depreciation for tax purposes is $$110,000.$ You are not provided enough detailed data to complete a Form $4562.$ Enter this amount of depreciation on line $20$ of Form $1120.$ Assets $1/1/202312/31/2023$Cash $1,000,000780,000$Trade and accounts receivable $1,650,0001,838,000$Inventories $2,200,0002,424,000$State Bonds $300,000300,000$Certificates of Deposit $310,000250,000$Stock $(8\%-$owned, domestic corporations$)900,000900,000$Prepaid federal income taxes $3,630$Buildings and other depreciable assets $4,465,0004,465,000$Accumulated Depreciation $(585,000\mathrm{.}00)(665,000\mathrm{.}00)$Land $550,000600,000$Other assets $212,000152,800$Total Assets $11,002,00011,048,430$ Liabilities and Owner's Equity Accounts payable $1,750,0001,279,800$Other current liabilities $242,000523,000$Mortgages $($long$-$term portion$)2,700,0002,660,000$Capital stock $3,000,0003,000,000$Retained earnings $3,310,0003,585,630$Total Liabilities and Owners' Equity $11,002,00011,048,430$ On May $22,1994,$ Billy Davis and Steven Fox formed Awesome Apparel, Inc. to sell sports clothing and accessories. Pertinent information regarding Awesome Apparel is summarized as follows: Awesome Apparels business address is $3066$ Grant Way, Statesboro, GA $30555$; its telephone number is $(912)555-9122$; and its email address is awesomeapparel@rmail.com The employer identification number is $86-7530999,$ and the principal business activity code is $924611.$ Billy and Steven each own $50\%$ of the common stock $($there is no preferred stock$)$; Billy is the president and Steven is vice president of the company. Both Billy and Steven are full$-$time employees of Awesome Apparel. Billys social security number is $567-45-6789,$ and Stevens social security number is $987-22-4465.$ Awesome Apparel is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Awesome Apparel uses the straight$-$line method of depreciation for book purposes and accelerated depreciation $($MACRS$)$ for tax purposes. During $2023,$ the corporation distributed cash dividends of $$392,005.$During $2023,$ Awesome Apparel made estimated tax payments of $$48,498\mathrm{.}75$ each quarter to the IRS. Prepare a Form $1120$ for Awesome Apparel for tax year $2023.$ Required: Form $1120$ Page $1-6,$ Form $1125-$A$,$ Form $1125-$E$,$ and Schedule M$-2,$ and Schedule M$-3($instead of M$-1).$ Fill each section out in its entirety