Log in to BlockWorks in PRACTICE mode and open the shell return (EIN: 64-6499003

Question

Log in to BlockWorks in PRACTICE mode and open the shell return (EIN: 64-6499003) for the Beard Corporation. BlockWorks will generate a unique EIN that should be used to prepare a 2016 Form 1120 return for the Beard Corporation. Please make note of this unique EIN in the space provided below. Make the necessary assumptions for any facts not given. After the return preparation is complete, return to the test and answer the associated questions. Name of organization: Beard Corporation Address: 999 Main Street Contact phone number: (XXX) 555-6403 Email: beardcorp@net.net EIN: 64-6499003 New SSN:____________________ Entity type: Corporation Authorize IRS to discuss return: Yes Date incorporated: January 1, 2011 Offi cer signing the return: Omega Beard (President) Offi 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 Offi 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) What is the total income reported on Form 1120, line 11? $85,785 $87,535 $87,785 $89,535 What is the taxable income reported on Form 1120, line 30? $43,045 $44,795 $47,295 $49,045 What is the gross sales amount reported on Form 1120, line 1a? $85,785 $87,535 $87,960 $89,535 What are the total deductions reported on Form 1120, line 27? $40,990 $42,740 $42,990 $44,740

Explanation / Answer

1) Total Deductions = 42990 (25000+4250+1975+750+2000+4725+4290)

2) Gross profit = 85785 (87535-1750)

3) Taxable Income = 44795 (85785+425+1575-42990)

4) Total Income = 87785 (87535-1750+425+1575)

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