Case Study
Use the Lesson 8 Template to complete both parts of the case study.
Be sure to answer all questions.
Use the information below to complete the template:
- Complete the items below that would appear on a book/tax reconciliation for Schedule M-1 on the IRS Form 1120, U.S. Corporation Income Tax Return, for Joseph’s first year of operations in the provided template.
- Based on the data provided, enter the appropriate values in the associated cells in the Excel Spreadsheet.
- Please enter additions as positive whole numbers and subtractions as negative whole numbers.
- If an amount is zero, enter a zero.
Note: The deduction for organizational expenses in the year was $5,750.
Part 2
Lynwood Inc. is a calendar year, accrual-basis C corporation.
- For each independent situation shown in the spreadsheet, calculate the corporation’s taxable income (loss) for its Form 1120, U.S. Corporation Income Tax Return.
- Column A lists preliminary taxable income excluding additional tax return items shown in Column B. Enter the taxable income (loss) in the associated cells in column C on your Excel spreadsheet.
- If applicable, show your calculations in the cell next to column C.
Be sure to complete both parts of your case study before uploading your Excel file to the link below.
