Dr. Bruce C corp 2010

Dr. Bruce C corp 2010 - - 77,500-100,000 Capital stock...

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Dr. George Bruce’s Owns a Medical Practice A Tax Return Exercise Accountancy 325, Spring 2011 George Bruce is a small business owner who owns 100 percent of a corporation, Bruce Almighty—A Professional Corporation, that operates a cash basis, calendar year, medical practice. The company’s gross receipts from services for 2010 were $1,045,000. The corporation also earned interest of $23. Business expenses were as follows: Dr. Bruce’s salary $ 539,500 Salaries and wages (not for officers) 162,500 Employee benefits 77,073 Retirement contributions 135,200 Rent on premises 38,000 Office expenses including supplies, utilities, and custodial 16.890 Federal corporate income tax for 2009—Not deductible on Form 1120 5,500 Depreciation—Same as per Books 22,500 Distributions for the year (tax-free) 500 The balance sheet of the corporation per books (for Schedule K) follows: Cash $300,000 $ 369,860 Equipment 100,000 100,000 Accumulated depreciation
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Unformatted text preview: - 77,500-100,000 Capital stock $100,000 $100,000 Retained earnings 222,500 269,860 Required (15 points)Due April 27 (Beginning of Class) Complete the 2010 federal Form 1120, as well as Form 1099-DIV and Form W-2 for Dr. Bruce. You may provide all necessary information that is not given for the company. Since the corporation is a cash basis taxpayer, assume that the expense for federal income tax does not need to be accrued (not allowed under GAAP). Apparently, the tax due on January 1, 2010 was $5,500 and is an expense in 2011. You may work alone or in a group of up to three. Groups should submit one return with each members name listed at the top of the return. You should be able to complete this in 45 minutes. Essay (In class)--Parameters: 50% of evaluation is based on first impression of content. 50% of evaluation is based on writing, including persuasion....
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This note was uploaded on 05/21/2011 for the course ACCT 325 taught by Professor Ostrich during the Spring '11 term at San Diego State.

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