Xerxes Manufacturing, in Its First Year of Operations, Produces Solar

question 76

Essay

Xerxes Manufacturing, in its first year of operations, produces solar panels which are sold through large building supply and home improvement stores. Xerxes' year-end results include the following:
$\begin{array}{lr}\text { Office rent and utilities } & \$ 15,000 \\\text { Salaries of office staff } & 100,000 \\\text { Salaries of factory workers } & 500,000 \\\text { Direct materials used in production of solar panels } & 400,000 \\\text { Factory rent } & 30,000 \\\text { Factory utilities } & 10,000\end{array}$ You are preparing Xerxes' first year tax return. Xerxes has elected a calendar year as its tax accounting period and the accrual method. What additional information would you need to prepare the tax return?

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