Chat with us, powered by LiveChat REVIEW PROJECT – CORPORATE – M-1+TI (1) Your assignment is to complete the corporate M-1 - Writeedu

REVIEW PROJECT – CORPORATE – M-1+TI (1) Your assignment is to complete the corporate M-1

REVIEW PROJECT – CORPORATE – M-1+TI

(1) Your assignment is to complete the corporate M-1 for each of the problems below. This project is due per the Syllabus. You should show your work by completing the Form 1120 M-1 for each problem. FOR ELECTRONIC SUBMISSIONS IN ONLINE CLASSES, PLEASE MAKE EVERY EFFORT TO SUBMIT, IF POSSIBLE, EITHER A SINGLE PDF OR A SINGLE WORD DOCUMENT OF THE ENTIRE TAX RETURN FORM. THANK YOU.

(2) The Project is worth 50 points

(3) Check figures for M-1

Line 1: Jonathan Corp.: 386,250; Garrett Corp.: 174,100

Line 10: Jonathan Corp.: 122,000; Garrett Corp.: 265,000

Based in part on problems from leading textbooks

Jonathan Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M-1 for 2019.

Net income per books (after-tax) $386,250 Federal income tax per books 30,050

Tax-exempt interest income 5,000

Life insurance proceeds received as a

result of death of corporate president 300,000

Nondeductible penalties 2,500

Interest on loan to purchase tax-exempt bonds 1,700

Excess of capital losses over capital gains 5,300

Premiums paid on life insurance policy on life of

Eagle’s president 4,200

Excess of tax depreciation over book depreciation 3,000

The following information for 2019 relates to Garrett Corporation, a calendar year, accrual method taxpayer.

Net income per books (after-tax) $174,100 Federal income tax per books 86,600

Tax-exempt interest income 4,500

MACRS depreciation in excess of straight-line

depreciation used for financial accounting

purposes 7,200

Excess of capital loss over capital gains 9,400

Non-deductible meals and entertainment 5,500

Interest on loan to purchase tax-exempt bonds 1,100

Based on the above information, use M-1 of Form 1120, which is available on the IRS website, to determine Garrett Corporation’s taxable income for 2019.

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