Your client for this project is a C$-$corporation named Boy Genius, Inc. Your assignment

is to complete and turn in the client$$s $2023$ Form $1120$ along with all required forms and

schedules. For purposes of this assignment, you do not need to complete or attach any

Forms W$-2,1098,1099,$ or K$-1.$ You should also ignore any penalties that the taxpayer

may have incurred and ignore any AMT considerations.

Phoebe Bridgers, Julien Baker, and Lucy Dacus are equal owners of Boy Genius, Inc. $($BG$).$ BG is an accrual method C$-$corporation that was formed on January $19,2013.$ It uses a calendar$-$year for tax reporting. The firm has one class of stock. Its primary business is to produce music for musicians in the greater Nashville area.

BG is located at $408$ Broadway, Nashville, TN $37203,$ where it has been since it started in $2013.$ All three of its owners serve as corporate officers, with Phoebe $(448-25-1992)$ serving as CEO and President; Julien $(925-44-7982)$ serving as COO and Executive VP; and Lucy $(322-19-5670)$ serving as CFO and Finance VP$.$ The three owners are all US citizens. The company's EIN is $98-146777.$

Phoebe, Julien and Lucy spent all of their time working at BG in $2024.$ Phoebe earned total compensation of $\backslash (\backslash$$ $170,000\backslash ),$ Julien received $\backslash (\backslash$$ $120,000\backslash ),$ and Lucy received $\backslash (\backslash$$ $130,000\backslash ).$ All$\_$sf its other employees earned a total of $\backslash (\backslash$$ $530,000\backslash ).$

In $\backslash (2022,\backslash$mathrm$\{$BG$\}\backslash )$ had a tax liability of $\backslash (\backslash$$ $39,000\backslash )$ and, in $2023,$ it made four equal tax payments of $\backslash (\backslash$$ $9,000\backslash ).$ BG also paid a total of $\backslash (\backslash$$ $50,000\backslash )$ of dividends to its three shareholders. It had sufficient E$\backslash$&P to make this distribution.

BG had $\backslash (\backslash$$ $360,000\backslash )$ worth of purchases related to inventory in $2023.$ The firm also had $\backslash (\backslash$$ $10,000\backslash )$ of interest income during the year. Out of this amount, $\backslash (\backslash$$ $1,000\backslash )$ was from a City of Franklin bond it acquired in $2019$ and $\backslash (\backslash$$ $2,000\backslash )$ was from a City of Brentwood bond it acquired in $2020.$ The remaining $\backslash (\backslash$$ $7,000\backslash )$ amount came from a Google, Inc., bond.

BG received dividend income in $2023$ as well. The income came from Broadway Music, Inc. BG originally purchased $12,000$ shares of that firm's outstanding stock in $2014,$ which amounted to $\backslash (12\backslash \%\backslash )$ of the total stock. At the beginning of $2023,$ it owned this same amount and percentage, but it sold $500$ shares on May $4$ for $\backslash (\backslash$$ $15,000\backslash ).$ BG had a $\backslash (\backslash$$ $30,000\backslash )$ basis in these $1,000$ shares. After the sale, BG only had an $\backslash (11\backslash \%\backslash )$ ownership interest in Broadway Music, Inc.

For the year, BG wrote off $\backslash (\backslash$$ $25,000\backslash )$ of accounts receivables when it determined it was uncollectible. It had tax depreciation of $\backslash (\backslash$$ $28,000\backslash ),$ and it paid a $\backslash (\backslash$$ $6,000\backslash )$ premium for life insurance for its three officers. It was the beneficiary of this policy. The following is BG$\text{'}$s audited income statement for $2023$:$|$ The following are BG$\text{'}$s audited balance sheets as of year$-$end $2022$ and year$-$end $2023$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline & $12/31/22$ & $12/31/23\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Assets$\}\backslash \backslash$

$\backslash$hline Cash & $\backslash$$$180,000$ & $\backslash$$$205,000\backslash \backslash$

$\backslash$hline Accounts receivable & $560,000$ & $580,000\backslash \backslash$

$\backslash$hline Allowance for doubtful accounts & $\backslash ((60,000)\backslash )$ & $\backslash ((50,000)\backslash )\backslash \backslash$

$\backslash$hline Inventory & $140,000$ & $150,000\backslash \backslash$

$\backslash$hline U$.$S$.$ govermment bonds & $20,000$ & $20,000\backslash \backslash$

$\backslash$hline State and local bonds & $120,000$ & $120,000\backslash \backslash$

$\backslash$hline Investments in stock & $400,000$ & $360,000\backslash \backslash$

$\backslash$hline Fixed assets & $140,000$ & $160,000\backslash \backslash$

$\backslash$hline Accumulated depreciation & $\backslash ((50,000)\backslash )$ & $\backslash ((60,000)\backslash )\backslash \backslash$

$\backslash$hline Other assets & $20,000$ & $21\mathrm{.}000\backslash \backslash$

$\backslash$hline Total assets & $\backslash$$$1,470,000$ & $\backslash$$$1,506,000\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Liabilities and Shareholders' Equity$\}\backslash \backslash$

$\backslash$hline Accounts payable & $\backslash$$$280,000$ & $\backslash$$$240,000\backslash \backslash$

$\backslash$hline Other current liabilities & $20,000$ & $18,000\backslash \backslash$

$\backslash$hline Other liabilities & $40,000$ & $26,000\backslash \backslash$

$\backslash$hline Capital stock & $400,000$ & $400,000\backslash \backslash$

$\backslash$hline Retained earnings & $730\mathrm{.}000$ & $822,000\backslash \backslash$

$\backslash$hline Total liabilities and shareholders' equity & $\backslash$$$1,470,000$ & $\backslash$$$1,506,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

For this project, you should assume that BG has already filed any required Form $1099$s$.$ Also, BG does not need to claim any of its depreciation on Form $1125$A$.$ Further, BG uses the FIFO system for inventory and the rules of sec$.263$A do not apply. Finally, assume that BG will not be subject to any tax penalties and does not need to conduct any alterative minimum tax calculations.