Task:
Bizrate Electronics, Inc.
Notes to Income Statementa.Includes salaries: Jon Jones $200,000, Billy Burt $50,000.b.Depreciation for tax purposes $112,700.c.$2,500 is allocable to the investments in stock. The remainder is related to Bizrate’s business.d.$6,000 in fees were incurred in organizing Bizrate.e.Includes $5,000 of premiums for term life insurance on Jon and Billy. Bizrate is the beneficiary of these policies. In addition, $4,300 of the health insurance premiums are attributable to coverage for Jon and his family, and $3,900 are attributable to coverage for Billy and his family.f.Sold 500 shares of SBUX stock for $35,000 on December 1, 2018. The stock had been purchased by Jon on July 1, 2004 for $20,000 and was contributed by him on February 22, 2018, when it was worth $30,000. Also, on December 1, 2018 sold 100 shares of Grand View, Inc. for $2,000. The stock had been purchased on March 1, 2018 for $3,000. At no time did Bizrate own more than 1% of the outstanding stock of these corporations.g.Sold a delivery truck on September 23, 2018 for $35,000. The Truck had originally been purchased on May 1, 2018 for $33,400. Depreciation taken for book purposes was $7,000. Depreciation taken for tax purposes was $9,350.Bizrate owns less than 20% of the outstanding stock of each of these corporations.
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