Form 1120 The Beard Corporation Income Expenses are as foll

Form 1120 The Beard Corporation.

Income & Expenses are as follows: $87,535 Cash Sales,$1,750 Customer Refunds, $425 Interest Income, $1,575 Royalities - Expenses - $25,000 Officer Compensation, $4,250 book/Tax depreciation, $1,975 Interest expense, $750 Taxes & Licenses, $2,000 Advertising, $4,725 Utilities, $4,290 Packaging.

1. What is the gross sales amount reported on Form 1120, line 1a? A. $85,785, B. $87,535, C. $87,960, D. $89,535

2. What are the total deductions reported on Form 1120, line 27? A. $40,990, B. $42,740, C. $42,990, D. $44,740

3. What is the total income reported on Form 1120, line 11? A. $85,785, B. $87,535, C. $87,785, D. $89,535

Solution

Ans. (1) Gross Sale amount = $87,535 (i.e. Cash Sales - $87,535 ) Ans. (2) Total Deductions reported = $42,990 i.e. Officer Compensation=        25,000 Book/Tax depreciation=          4,250 Interest Expense =          1,975 Taxes & License =              750 Advertising =          2,000 Utilities =          4,725 Packaging =          4,290                   Total $   42,990 Ans. (3) Total Income reported = $87,785 i.e. Cash Sales =        87,535 Less: Customer refunnds=        (1,750) Interest Income =              425 Royalties =          1,575                   Total $   87,785