Answer Happy

Comprehensive Problem 11-2 George Corporation is an S corporation started on January 1, 2020, with 50 shares owned by Trey Martin and So shares owned by Brianna Tabor The corporation is located at 15620 McMullen Hwy SW, Cumberland, MD 21502 and has EIN 94-8888888. The corporation is not subject to any special taxes and no wages are included in cost of goods sold. The corporation's income statement for the year and the batance sheet at year-end are presented below. The George Corporation Income Statement for the Year Ended December 31, 2020 Gross income from operations $320,000 Qualified dividends received from a 15 percent-owned domestic corporation 20,000 Total gross income 340,000 Cost of goods sold (70,000) Total income 270,000 other expenses: Compensation of officers $80,000 Salaries and wages 20,000 Bad debts (direct charge-offs) 9,000 Repairs 3,000 10,000 Depreciation for book (tax depreciation - $90,000)
Payroll taxes 15,000 Total other expenses (140,000) Net income $130,000 The George Corporation Balance Sheet as of December 31, 2020 Assets: Cash $109,000 20,000 Accounts receivable Inventory (at cost) 70,000 Other assets 40,000 90,000 Equipment Less: accumulated depreciation (10,000) $319,000 Total assets Liabilities and owners' equity: $24,000 Accounts payable 85,000 Note payable (due in 10 years) 80,000 Common stock 130,000 Retained earnings $319,000 Total liabilities and owners' equity Check My Work 2 more Check My Work uses remaining,