Question

Income Contribution Sheet for Corporation in Puerto rico Corporation Information: Name ACCO 305 INC Date of incorporation October 18, 2016 Patron id 88-0752540 Contributory Period 1 January 2018 -31 December 2018 Merchant Registration 33305 3053301 Core Business Consulting Service Gross income generated $118,000 Deduction for additional contribution purposes $25000 Expenses: Insurance $680 Property rent $6,665 Car expense (6471 miles) * how much you can deduct Professional Services $16,000 Food and entertainment expense $4012 what can be deducted Water, light, telephone, internet $3,218 Repairs $455 Bank charges $69 Advertising and marketing expense $1,540 Fees and memberships $1,216 Additional information: Miscellaneous Expenses $4,026 Contribution at origin on professional services payments $1,306 Questions 1. Provide an example of the form that the corporation must complete 2. Determine whether the corporation had a profit or loss 3. Explain that the $25,000 deduction applies for additional contribution purposes (See Form SC 2652)

Answer 1

Particulars Gross income Amount $118000 $118000 Total Expenses Insurance Property rent Professional fess Food and Entertainment S680 $6665 $16000 $4012 Wate, light, telephone, interne Repair Bank Charges Advertisment Fessand Membership Misc. Exp. Cont.of Prof. services S3218 S455 569 S 1540 51216 S4026 $1306 $39187 Net Profit Aaditional Deduction Net Income $78813 $25000 $53813