Question - Based on the following data for Bronco, Inc., prepare the 2013 federal income tax return for filing. Bronco, Inc. (a new corporation with no other activity) had the following transactions in 2013:
1. January 1, sold common shares for $300,000.
2. January 1, purchased office equipment (data handling equipment) for $100,000. Book depreciation is based on straight-line method, 8 year useful life, and estimated salvage value $20,000.
3. Cash sales to customers throughout the year were $500,000.
4. Paid salaries and wages in cash throughout the year of $50,000 (disregard payroll taxes).
5. November 1 paid cash dividends of $75,000.
6. Bronco elects to forego 179 expense and bonus depreciation deductions. Please disregard estimated tax penalty.