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Univex is a calendar year , accrual basis retail business , it is financial statement provide the following information for the year /
|
Revenues from sales of goods |
783,200 |
|
Cost of goods sold FIFO |
(417,500) |
|
Gross profit |
365,700 |
|
Interest income from certified of deposit |
1,300 |
|
Dividend income from IBM of deposit |
6720 |
|
Gain from sale of IBM stock purchase in 2000 |
8615 |
|
Bad debt expense |
3900 |
|
Administrative salaries and wages |
153,400 |
|
Business and employment taxes |
31,000 |
|
Interest expense on debt incurred to buy inventory |
5,100 |
|
Advertising |
7,000 |
|
Meals and entertainment |
3,780 |
|
Property insurance premiums |
4,300 |
|
Depreciation |
10,800 |
|
Repairs and maintenance |
18,700 |
|
Supplies |
4,120 |
|
Utilities |
21,000 |
|
Contributions on charity |
5,000 |
Unives’s records reveal the following facts
· Bad debt expense equal the additional to an allowance for bad bad debts .Actual write –offs of uncollectible accounts totaled $ 2,000.
· MACRS depreciation for the year was $ 21,240.
· Univex made no dispositions of operating assets.
· The owners did not receive any compensation or withdraw my funds from Univex .
· Univex is entitled to a $ 1,800 general business credit.
a. Assume Univex is a sole proprietorship .compute net profit on schedule C , form 1040 ,and identify the items from Unive’s records that do not appear on schedule C .complete schedule C form 1040 .
b. Assume univex is an LLC .Compute ordinary income on page 1, form 1065 and complete schedule K form 1065.
c. Assume Univex is a corporation operating in a state without a corporation income tax, Univex made estimated federal tax payment totaling $ 23,500 .compute taxable income on page 1. form 1120 , calculate Univex’s federal income tax and complete page 1 , form 1120 , and schedule M-1 page 5 form 1120 .
Check figures
Sch C/1065 Net Profit 95,950
1120 Taxable Income 102,881
