Permtemp Corporation formed in 2011 and for that year reported the following boo

Permtemp Corporation formed in 2011 and for that year reported the following bookincome statement and balance sheet excluding the federal income tax expense deferredtax assets and deferred tax liabilities:Sales $20000000Cost of goods sold$ (15000000 )Gross profit $ 5000000Dividend income 50000Tax-exempt interest incomeTotal income $ 5065000Expenses:Depreciation $ 800000Bad debts 400000Charitable contributions 100000Interest 475000Meals and entertainment 45000Other 3855000Total expenses )Net loss before federal income taxes(5675000 )Cash $ 500000Accounts receivable $ 2000000Allowance for doubtful accounts (250000) 1750000Inventory 4000000Fixed assets $10000000Accumulated depreciation(800000 ) 9200000Investment in corporate stock 1000000Investment in tax-exempt bonds 50000Total assets $16500000Accounts payable $2610000Long-term debt 8500000Common stock 6000000Retained earnings(610000)Total liabilities and equity $16500000Additional information for 2011:The investment in corporate stock is comprised of less-than-20%-owned corporations.Depreciation for tax purposes is $1.4 million under MACRS.Bad debt expense for tax purposes is $150000 under the direct writeoff method.Limitations to charitable contribution deductions and meals and entertainmentexpenses must be tested and applied if necessary.Qualified production activities income is zero.Required for 2011:a. Prepare page 1 of the 2011 Form 1120 computing the corporation s NOL.34% tax rate.Note: For 2011 forms go to forms and publications previous years at the IRS websitewww.irs.gov.