Margaret Brown and Joel Lee

by | Nov 17, 2021 | Homework Help

INSTRUCTIONS:GENERAL COMPANY INFORMATIONMargaret Brown and Joel Lee each own 50% of Designs Inc. with no other class of stock is authorized. On June 6, 2009, they formed to provide design services. Designs Inc business address is 2134 Merry Lane, Las Cruces, NM 088011. The telephone number is (575) 541-1122 and the e-mail address is .Employer identification number is 11-1111111. Margaret is the president of the company and Joel is the vice-president. Margaret and Joel are the only full-time designers employed by Designs, Inc. and they perform all of the design services of the corporation. MargaretÂ’s Social Security number is 123-45-6789 and JoelÂ’s Social Security number is 555-48-9898.Designs, Inc. is a cash method, calendar year taxpayer. Designs, Inc. uses the straight-line method of depreciation for both book and tax purposes. (You are not provided enough detailed data to complete a Form 4562 (depreciation). Enter the amount of depreciation on line 20 of Form 1120.) The corporation does not maintain any inventory.During the year, the corporation distributed cash dividends of $10,000.The domestic production activities deduction (DPAD) for the year is $947. You are not provided enough detailed data to complete a Form 8903 (domestic production activities deduction). Enter the amount of the DPAD on line 25 of Form 1120.During the year, Designs, Inc. made estimated tax payments of $1,500 each quarter to the IRS.Designs, Inc. Income StatementIncome:Design fees

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