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  1. business
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  3. what is a income tax? mr. a and b each invested $

WHAT IS A INCOME TAX? Mr. A and B each invested $100,000 to start...

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WHAT IS A INCOME TAX?

Mr. A and B each invested $100,000 to start a plumbing business on 01/01/2020 Prepare 2020 CORPORATE Tax Return from the following information Dr Cr Cash 45,000 Accounts Receivable 85,000 Investment in Stocks/Bonds 30,000 Equpment 185,000 Accumulated Depreciation 43,000 Accounts Payable 70,000 Common Stock 200,000 Sales 850,000 Interest income 1,500 Dividend ( 5% owned) 5,000 Cost of sales 450,000 Salaries to A 60,000 Salaries to B 60,000 Other salaries 65,000 Charitable Contribution 1,000 Rent 60,000 Utilities 18,000 Penalties 1,000 Advertising 24,000 Depreciation-MACRS 43,000 Contract Labor 42,500 1,169,500 1,169,500 Taxable Income 30,500

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