For 2012, Permtemp reported the following book income statement and balance sheet, excluding the federal

Question # 00074351 Posted By: jia_andy Updated on: 06/04/2015 12:49 PM Due on: 07/31/2015
Subject Law Topic Taxation Tutorials:
Question
Dot Image

For 2012, Permtemp reported the following book income statement and balance sheet,

excluding the federal income tax expense, deferred tax assets, and deferred tax liabilities:

Sales $33,000,000

Cost of goods sold )

Gross profit $11,000,000

Dividend income 55,000

Tax-exempt interest income

Total income $11,070,000

Expenses:

Depreciation $ 800,000

Bad debts 625,000

Charitable contributions 40,000

Interest 455,000

Meals and entertainment 60,000

Other

Total expenses )

Net income before federal income taxes

Cash $ 2,125,000

Accounts receivable $ 3,300,000

Allowance for doubtful accounts ) 2,850,000

Inventory 6,000,000

Fixed assets $10,000,000

Accumulated depreciation ) 8,400,000

Investment in corporate stock 1,000,000

Investment in tax-exempt bonds

Total assets

Accounts payable $ 2,120,000

Long-term debt 8,500,000

Common stock 6,000,000

Retained earnings

Additional information for 2012:

Depreciation for tax purposes is $2.45 million under MACRS.

Bad debt expense for tax purposes is $425,000 under the direct writeoff method.

Qualified production activities income is $3 million.

Required for 2012:

a. Prepare page 1 of the 2012 Form 1120, computing the corporation s taxable income

and tax liability.


Also help figuring out schedule C, L, M-2, & M-3

 included  2011 pg 1 if it is needed.


Dot Image
Attachments
Tutorials for this Question
  1. Tutorial # 00069028 Posted By: jia_andy Posted on: 06/04/2015 12:50 PM
    Puchased By: 2
    Tutorial Preview
    The solution of For 2012, Permtemp reported the following book income statement and balance sheet, excluding the federal...
    Attachments
    permtemp_Schedule-M3.pdf (193.92 KB)
    permtemp_FORM-1120.pdf (370.45 KB)

Great! We have found the solution of this question!

Whatsapp Lisa