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Name of organization: Beard Corporation Address: 999 Main Street Contact phone n

ID: 2567791 • Letter: N

Question

Name of organization: Beard Corporation Address: 999 Main Street Contact phone number: (XXX) 555-6403 Email: beardcorp@net.net EIN: 64-6499003

Entity type: Corporation Authorize IRS to discuss return: Yes

Date incorporated: January 1, 2011
Of cer signing the return: Omega Beard (President) Of cer SSN: 747-64-3001 During the year, the Beard Corporation had the following income and (expenses):
Cash sales: $87,535

Customer refunds: ($ 1,750)

Interest income: $ 425

Royalties: $ 1,575

Of cer compensation: ($25,000)

Book/tax depreciation: ($ 4,250)

Interest expense: ($ 1,975) Taxes and licenses: $ 750

Advertising: ($ 2,000) Utilities: ($ 4,725)

Packaging: ($ 4,290)

1) What is the gross profit for the Beard Corporation?

A) $85,785

B) $86,210

C) $87,535

D) $87,785

2) What is the total income reported in Form 1120, line 11?

A) $85,785

B) $87,535

C) $87,785

Explanation / Answer

answer: 1 option A  A) $85,785 (87535-1750)

answer: 2 C) $87,785 (87535-1750+425+1575)