80.2K

Verified Solution

Link Copied!

Univex is a calendar year, accrual basis retail business. Univex hold less than 20% of IBM stock. Its financial statements 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 certificates of deposit		1,300
Dividend income from IBM stock		6,720
Gain from sale of IBM stock purchased in 2000		8,615
Bad debt expense		3,900
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		3,780
Property insurance premiums		4,300
Depreciation		10,800
Repairs and maintenance		18,700
Supplies		4,120
Utilities		21,000
Contributions to charity		5,000

Univexs records reveal the following facts:

• Bad debt expense equals the addition to an allowance for 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 compensation or withdraw any funds from Univex.
• Univex is entitled to an $1,800 general business credit.

Required:

1. a. Assume Univex is a sole proprietorship. Complete Schedule C, Form 1040.
2. b-1. Assume Univex is an LLC. Complete page 1, Form 1065.
3. b-2. Assume Univex is an LLC. Complete Schedule K, Form 1065.
4. c-1. Assume Univex is a corporation operating in a state without a corporate income tax. Univex made estimated federal tax payments totaling $23,500. Compute taxable income on page 1, Form 1120, calculate Univexs federal income tax, and complete page 1, 2019 Form 1120.
5. c-2. Assume Univex is a corporation operating in a state without a corporate income tax. Univex made estimated federal tax payments totaling $23,500. Reconcile Income (Loss) as per Books With Income per Return. Complete Schedule M-1, page 6, Form 1120.

Answer & Explanation Solved by verified expert

See Answer