What are the officer compensation and the depreciation for the M-1 and schedule K for the following
Question:
What are the officer compensation and the depreciation for the M-1 and schedule K for the following info?
#On July 1, 2018, CRU purchased $640,000 of new equipment (5-year MACRS property) Not including the $640,000 of net additions during the year, CRU’s calculated regular and AMT tax depreciation for the current year is $275,000. CRU desires to maximize its current year cost recovery deductions relating to the equipment additions.
#All of the accrued wage amounts on the balance sheet as of December 31, 2018, were paid on January 15, 2018.
#The accrued bonus amounts on the balance sheets as of December 31, 2017, and 2018, respectively, were paid on July 1, 2017, and July 1, 2018, respectively.
#As of December 31, 2017, and 2018, respectively, CRU had accrued vacation on its books of $19,000 and $21,000. As of March 15, 2017, and March 15, 2018, respectively, CRU had paid $3,000 and $9,000 of those accrued amounts. None of these accrued amounts relate to officers’ compensation.
#Mitch Mumford, Number of common shares owned 4,300, Chief Executive Officer, 2018 W-2 wages $112,000
#Susan Sailboat, Number of common shares owned 2,300, Chief Financial Officer, 2018 W-2 wages $90,000
#Lucy Lollipop, Number of common shares owned 2,200, Chief Operations Officer, 2018 W-2 wages $80,000
Balance Sheet
Liabilities and Shareholders’ Equity:
Accounts Payable 99,000 93,000
Accrued Employee Wages 27,000 31,000
Accrued Officer Bonuses 110,000 145,000
Accrued Employee Vacation 19,000 21,000
Capital Stock 1,000 1,000
Additional paid-in Capital 99,000 99,000
Retained Earnings 807,000 1,394,750
Total Liabilities and Shareholders’ Equity $5,353,000 $5,736,500
Income Statement for the year ending December 31, 2018
Expenses:
Officer Salaries 317,000
Employee Salaries 437,000
Repairs and Maintenance 12,600
Bad Debts 22,000
Payroll Taxes 84,500
Depreciation 180,000
Employee Training 13,750
Key Man Life Insurance 12,000
Expert Answer:
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
