You are a staff accountant preparing your first Form 1120 for your first client, SageGreen Computer Corporation. Your manager plans to review your prepared tax form each step of the way, starting with page one. This is standard firm policy for the tax manager or partner to review and sign off on clients' tax returns prepared by the tax staff accountants. For your first deadline, you need to complete page one of the current tax year Form 1120. After you complete page one of the tax form, prepare to explain your thought process and your future considerations for the schedules on this form.

SageGreen Computer Corporation
Income Statement
For the Year Ended December 31
Gross Sales			$ 32,000,000.00
Cost of Goods Sold			20,360,000.00
Gross Profit			11,640,000.00
Other Income:
Dividends			65,000.00
Interest			20,000.00
Tax-Exempt Interest			6,000.00
Capital Loss			(22,000.00)
Total Income			11,709,000.00
Expenses:
Salaries and Wages			800,000.00
Charitable Contributions			40,000.00
Meals			54,000.00
Total Expenses			894,000.00
Net Income Per Books			$ 10,815,000.00

Company Information
Address:	1234 Anywhere Blvd, Sun City, AZ 85351
Employer Identification Number (EIN):	85-1234566
Date Incorporated:	1/2/2022

Notes:

1. Meals are subject to 50% limitation.

2. Tax exempt interest of $6,000 is earned from Arizona state bonds.

3. Capital stock transactions:

a. 4,000 shares of Tech Inc. stock purchased February 1 for $100,000, sold April 1 for $113,000

b. 2,000 shares of WiresNThings stock purchased June 1 for $50,000, sold September 1 for $55,000

c. 3,000 shares of stock purchased April 1 for $140,000, sold September 1 for $100,000

Cost of Goods Sold notes:

Beginning inventory $0

Purchases during the year $17,000,000

Cost of labor $3,000,000

Other costs (depreciation) $360,000

Ending inventory $0

Ending Cash Balance will equal Ending Retained Earnings Balance.

Answer rating: 100% (QA)

To complete page one of Form 1120 for SageGreen Computer Corporation you need to provide the following information Form 1120 Page 1 1 Business Informa... View the full answer