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

Univex is a calendar year , accrual basis retail business , it is financial statement provide the following information for the year /

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