Solution Manual for Taxation of Individuals 2020 Edition 11th Edition By Spilker

Solution Manual for Taxation of Individuals 2020 Edition 11th Edition By Spilker

Solution Manual for Taxation of Individuals 2020 Edition 11th Edition By Spilker
Taxation of Individuals 2020 Edition 11th Edition By Spilker – Solution Manual
Taxation of Individuals 2020 Edition 11th Edition
Taxation of Individuals 2020 Edition

U.S. Corporation Income Tax Return
For calendar year 2018 or tax year beginning , 2018, ending , 20
OMB No. 1545-0123
2018
TYPE
OR
PRINT
Name
Number, street, and room or suite no. If a P.O. box, see instructions.
City or town, state or province, country, and ZIP or foreign postal code
A Check if:
1a Consolidated return
(attach Form 851) .
b Life/nonlife consolidated return . . .
2 Personal holding co.
(attach Sch. PH) . .
3 Personal service corp.
(see instructions) . .
4 Schedule M-3 attached
B Employer identification number
C Date incorporated
D Total assets (see instructions)
$
E Check if: (1) Initial return (2) Final return (3) Name change (4) Address change
Income
1a Gross receipts or sales . . . . . . . . . . . . . . . . 1a
b Returns and allowances . . . . . . . . . . . . . . . . 1b
c Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . . 1c
2 Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . . . 2
3 Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . 3
4 Dividends and inclusions (Schedule C, line 23, column (a)) . . . . . . . . . . . . . . . 4
5 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Gross rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Capital gain net income (attach Schedule D (Form 1120)) . . . . . . . . . . . . . . . 8
9 Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . . . 9
10 Other income (see instructions—attach statement) . . . . . . . . . . . . . . . . . 10
11 Total income. Add lines 3 through 10 . . . . . . . . . . . . . . . . . . . ▶ 11
Deductions (See instructions for limitations on deductions.)
12 Compensation of officers (see instructions—attach Form 1125-E) . . . . . . . . . . . ▶ 12
13 Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . 13
14 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . 14
15 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
16 Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
17 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . 17
18 Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . 19
20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . 20
21 Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
22 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
23 Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . . 23
24 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . 24
25 Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . 25
26 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . 26
27 Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . ▶ 27
28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 28
29a Net operating loss deduction (see instructions) . . . . . . . . . 29a
b Special deductions (Schedule C, line 24, column (c)) . . . . . . . 29b
c Add lines 29a and 29b . . . . . . . . . . . . . . . . . . . . . . . . . 29c
Tax, Refundable Credits, and
Payments
30 Taxable income. Subtract line 29c from line 28. See instructions . . . . . . . . . . . . 30
31 Total tax (Schedule J, Part I, line 11) . . . . . . . . . . . . . . . . . . . . . 31
32 2018 net 965 tax liability paid (Schedule J, Part II, line 12) . . . . . . . . . . . . . . . 32
33 Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23) . . . . . . . 33
34 Estimated tax penalty. See instructions. Check if Form 2220 is attached . . . . . . . . ▶ 34
35 Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed . . . . 35
36 Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid . . . . 36
37 Enter amount from line 36 you want: Credited to 2019 estimated tax ▶ Refunded ▶ 37
Sign
Here
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct,
and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
▲
Signature of officer Date ▲
Title
May the IRS discuss this return
with the preparer shown below?
See instructions. Yes No
Paid
Preparer
Use Only
Print/Type preparer’s name Preparer’s signature Date
Check if
self-employed
PTIN
Firm’s name ▶
Firm’s address ▶
Firm’s EIN ▶
Phone no.
For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11450Q Form 1120 (2018)
Form 1120 (2018) Page 2
Schedule C Dividends, Inclusions, and Special Deductions (see
instructions)
(a) Dividends and
inclusions (b) % (c) Special deductions
(a) × (b)
1 Dividends from less-than-20%-owned domestic corporations (other than debt-financed
stock) . . . . . . . . . . . . . . . . . . . . . . . .
2 Dividends from 20%-or-more-owned domestic corporations (other than debt-financed
stock) . . . . . . . . . . . . . . . . . . . . . . . .
3 Dividends on certain debt-financed stock of domestic and foreign corporations . .
4 Dividends on certain preferred stock of less-than-20%-owned public utilities . . .
5 Dividends on certain preferred stock of 20%-or-more-owned public utilities . . . .
6 Dividends from less-than-20%-owned foreign corporations and certain FSCs . . .
7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs . . .
8 Dividends from wholly owned foreign subsidiaries . . . . . . . . . . .
9 Subtotal. Add lines 1 through 8. See instructions for limitations . . . . . . .
10 Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958 . . . . .
11 Dividends from affiliated group members . . . . . . . . . . . . . .
12 Dividends from certain FSCs . . . . . . . . . . . . . . . . .
13 Foreign-source portion of dividends received from a specified 10%-owned foreign
corporation (excluding hybrid dividends) (see instructions) . . . . . . . . .
14 Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13
(including any hybrid dividends) . . . . . . . . . . . . . . . . .
15 Section 965(a) inclusion . . . . . . . . . . . . . . . . . . .
16a Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of
the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471)
(see instructions) . . . . . . . . . . . . . . . . . . . . .
b Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s)
5471) (see instructions) . . . . . . . . . . . . . . . . . . .
c Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17
(attach Form(s) 5471) (see instructions). . . . . . . . . . . . . . .
17 Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992) . .
18 Gross-up for foreign taxes deemed paid . . . . . . . . . . . . . .
19 IC-DISC and former DISC dividends not included on line 1, 2, or 3 . . . . . .
20 Other dividends . . . . . . . . . . . . . . . . . . . . .
21 Deduction for dividends paid on certain preferred stock of public utilities . . . .
22 Section 250 deduction (attach Form 8993) . . . . . . . . . . . . .
23 Total dividends and inclusions. Add lines 9 through 20. Enter here and on page 1,
line 4 . . . . . . . . . . . . . . . . . . . . . . . .
24 Total special deductions. Add lines 9 through 22, column (c). Enter here and on page 1, line 29b . . . . . . .
Form 1120 (2018)
Form 1120 (2018) Page 3
Schedule J Tax Computation and Payment (see instructions)
Part I–Tax Computation
1 Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)). See instructions ▶
2 Income tax. See instructions . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Base erosion minimum tax (attach Form 8991) . . . . . . . . . . . . . . . . . . . 3
4 Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 a Foreign tax credit (attach Form 1118) . . . . . . . . . . . . . 5a
b Credit from Form 8834 (see instructions) . . . . . . . . . . . . 5b
c General business credit (attach Form 3800) . . . . . . . . . . . 5c
d Credit for prior year minimum tax (attach Form 8827) . . . . . . . . 5d
e Bond credits from Form 8912 . . . . . . . . . . . . . . . 5e
6 Total credits. Add lines 5a through 5e . . . . . . . . . . . . . . . . . . . . . 6
7 Subtract line 6 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Personal holding company tax (attach Schedule PH (Form 1120)) . . . . . . . . . . . . . . 8
9 a Recapture of investment credit (attach Form 4255) . . . . . . . . . 9a
b Recapture of low-income housing credit (attach Form 8611) . . . . . . 9b
c Interest due under the look-back method—completed long-term contracts (attach
Form 8697) . . . . . . . . . . . . . . . . . . . . . 9c
d Interest due under the look-back method—income forecast method (attach Form
8866) . . . . . . . . . . . . . . . . . . . . . . 9d
e Alternative tax on qualifying shipping activities (attach Form 8902) . . . . 9e
f Other (see instructions—attach statement) . . . . . . . . . . . 9f
10 Total. Add lines 9a through 9f . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 . . . . . . . . . . . . . 11
Part II–Section 965 Payments (see instructions)
12 2018 net 965 tax liability paid from Form 965-B, Part II, column (k), line 2. Enter here and on page 1, line 32 . 12
Part III–Payments, Refundable Credits, and Section 965 Net Tax Liability
13 2017 overpayment credited to 2018 . . . . . . . . . . . . . . . . . . . . . . 13
14 2018 estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . 14
15 2018 refund applied for on Form 4466 . . . . . . . . . . . . . . . . . . . . . . 15 ( )
16 Combine lines 13, 14, and 15 . . . . . . . . . . . . . . . . . . . . . . . . 16
17 Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . 17
18 Withholding (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Total payments. Add lines 16, 17, and 18 . . . . . . . . . . . . . . . . . . . . 19
20 Refundable credits from:
a Form 2439 . . . . . . . . . . . . . . . . . . . . . 20a
b Form 4136 . . . . . . . . . . . . . . . . . . . . . 20b
c Form 8827, line 8c . . . . . . . . . . . . . . . . . . 20c
d Other (attach statement—see instructions) . . . . . . . . . . . 20d
21 Total credits. Add lines 20a through 20d . . . . . . . . . . . . . . . . . . . . . 21
22 2018 net 965 tax liability from Form 965-B, Part I, column (d), line 2. See instructions . . . . . . . . 22
23 Total payments, credits, and section 965 net tax liability. Add lines 19, 21, and 22. Enter here and on page 1,
line 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Form 1120 (2018)
Form 1120 (2018) Page 4
Schedule K Other Information (see instructions)
1 Check accounting method: a Cash b Accrual c Other (specify) ▶ Yes No
2 See the instructions and enter the:
a Business activity code no. ▶
b Business activity ▶
c Product or service ▶
3 Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? . . . . . . . . . .
If “Yes,” enter name and EIN of the parent corporation ▶
4 At the end of the tax year:
a

Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt
organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the
corporation’s stock entitled to vote? If “Yes,” complete Part I of Schedule G (Form 1120) (attach Schedule G) . . . . . .
b Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all
classes of the corporation’s stock entitled to vote? If “Yes,” complete Part II of Schedule G (Form 1120) (attach Schedule G) .
5 At the end of the tax year, did the corporation:
a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of
any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions.
If “Yes,” complete (i) through (iv) below.
(i) Name of Corporation (ii) Employer
Identification Number
(if any)
(iii) Country of
Incorporation
(iv) Percentage
Owned in Voting
Stock
b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership
(including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions.
If “Yes,” complete (i) through (iv) below.
(i) Name of Entity
(ii) Employer
Identification Number
(if any)
(iii) Country of
Organization
(iv) Maximum
Percentage Owned in
Profit, Loss, or Capital
6 During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in
excess of the corporation’s current and accumulated earnings and profits? See sections 301 and 316 . . . . . . . .
If “Yes,” file Form 5452, Corporate Report of Nondividend Distributions. See the instructions for Form 5452.
If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary.
7 At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of the total voting power of all
classes of the corporation’s stock entitled to vote or at least 25% of the total value of all classes of the corporation’s stock? .
For rules of attribution, see section 318. If “Yes,” enter:
(a) Percentage owned ▶ and (b) Owner’s country ▶
(c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign
Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached ▶
8 Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . . ▶
If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments.
9 Enter the amount of tax-exempt interest received or accrued during the tax year ▶ $
10 Enter the number of shareholders at the end of the tax year (if 100 or fewer) ▶
11 If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions) ▶
If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached
or the election will not be valid.
12 Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported on
page 1, line 29a.) . . .