Question

U.S. Corporation Income Tax Return OMB No. 1545-0123 Fam 1120 For calendar year 2019 or tax year beginning ,2019, ending 20 2019 Dopartment of the Treasury Internal Rovenue Service A Check if: 1a Consolktatod rotum (attach Form 851) b Lifenonlile consol- datod roturm. ► Go to www.irs.gov/Form1120 for instructions and the latost information. Name B Employer identification number ТҮРЕ OR Number, stroet, and room or suite no. If a P.O. box, s0o instructions. C Duto incorporated PRINT 2 Posonal holding co. (attach Sch. PH. 3 Pornonal service corp ( инпсо). 4 Schedde M3 altached D Total assets (seo instructions) City or town, state or province, country, and ZIP or foreign postal code (4) O Addross chango E Check it: (1) O Initial return (3) O Name change (2) Final retum 1a Gross receipts or sales b Returns and allowances. c Balance. Subtract line 1b from line 1a Cost of goods sold (attach Form 1125-A) . Gross profit. Subtract line 2 from line 1c . Dividends and inclusions (Schedule C, line 23) 1a 1b 1c 3 3 Interest Gross rents Gross royalties 8. Capital gain net income (attach Schedule D (Form 1120)) Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (see instructions-attach statement) Total income. Add lines 3 through 10 Compensation of officers (see instructions-attach Form 1125-E) Salaries and wages (less employment credits) Repairs and maintonance Bad debts. 10 10 11 11 12 12 13 13 14 14 15 15 Rents 16 16 17 Taxes and licenses Interest (see instructions) Charitable contributions. Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) Depletion Advertising Pension, profit-sharing, etc., plans Employee benefit programs 17 18 18 19 19 20 20 3 21 21 22 22 23 23 24 24 25 Reserved for future use . 25 Other deductions (attach statoment) Total deductions. Add lines 12 through 26 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 20a Not operating loss deduction (see instructions) b Special deductions (Schedule C, line 24) . c Add lines 29a and 29b 26 26 27 27 28 28 29a 20b 20c 30 Taxable income. Subtract line 29c from line 28. See instructions 30 Total tax (Schedule J, Part I, line 11). 2019 net 965 tax liability paid (Schedule J, Part II, line 12) Total payments, credits, and section 965 net tax liability (Schedule J, Part II, line 23) Estimated tax penalty. See instructions. Check if Form 2220 is attached Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed Ovorpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid Enter amount from line 36 you want: Creditod to 2020 ostimated tax ► Under peraltion of perjury, I declare that I have examined this rotum, including accompanying schedulos and statements, and to the best of my knowledgo and beliel, it is trun, corect, 31 31 32 32 33 33 34 34 35 35 36 36 Refunded 37 37 and complete. Declaration of proparer (other than toxpayer) is baned on all infomation of which preparer has any knowkedge. Sign Here May the IRS discuss this roturn with the proparor shown bolow? Soe instructions. OYes ONo Signature of officer Print/iype proparer's name Title Date Proparer's signature Date PIIN Check O solf-omployed Firm's EIN Pald Preparer Use Only Fim's name Firm's address Phone no. Tax, Retundable Credits, and Deductions (See instructions for limitations on deductions.) Income

Answer 1

Though it is not an Accounting Question as per my understanding,

You can fill it up by filling:

Gross Receipts (Line no 1a and 1c) as $500,000

Cost of Sales (line no 2) as $250,000

Gross Profit (line no 3) as $250,000

Dividend and inclusions (line no 4) as $25,000

Total Income (line no 11) as $275,000

Taxable Income (Line no 28) as $275,000

Special Deductions (Line no 29b and 29c) as $16,250

Taxable Income (Line no 30) as $258,750

SCHEDULE C

I have assumed it is a domestic corporation where you hold 30% i.e. 20% or more and it is not a group member as the holding is below 50%

Hence, in line no 2 of Schedule C, fill it up as $25,000 in dividend and inclusion column and Special Deduction column should be $16,250

Your Total Income before Special Deductions = $275,000

Special Deductions =($16.250)

Taxable Income =$258,750