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Assignment Choice #1: Corporate Tax Returns

Because it is important for accountants to demonstrate the filing requirements for specialized tax returns, for this final project you will be completing a corporate tax return and then analyzing this experience. Key Component: Use the financial data from the following file to complete form 1120.

Complete the following template that has the respective tax forms and schedules required to complete the return. Complete all of the parts of your respective business tax return for which there is information.

Show your income tax calculations Prepare a write-up on:

The purpose of questions on Form 1120 Schedule K with the exception of line 1. (You may select a sub-grouping of these questions to complete your milestone.)

Some challenges (identify three to five), both anticipated and unexpected, when completing the corporate tax return.

Solutions you can provide to those challenges.

Requirements: Submit 1) your tax return template and

2) Income tax calculations, and

3) your write-up about the tax return questions to the drop box identified for that submission.

Entity Type: Corporation Sub-Entity Type: None Entity Name: BADEC State of Formation Georgia Entity Start Date 4/2/2013 Tax Year Start Date: 4/2/2013 Tax Year End Date: 12/31/2013 Book Maintained By: Andrew Anderson Address: 10 Sysco Way Atlanta, GA 30039 Purpose of Entity Acquire, rehabilitate and resale residential real property. Corporate Information Dividends Received from investment in a domestic corporations with ownership = 70% Estimated Tax Payments $6,000

First Name Last Name SSN Address City State Zip Shareholder Information Andrew Anderson 756-12-1111 10 Sysco Way Atlanta GA 30039 Shareholder Bill Bacon 756-12-2222 20 Sysco Way Atlanta GA 30039 Shareholder Cathy Cox 756-12-3333 30 Sysco Way Atlanta GA 30039 Shareholder Doris Day 756-12-4444 40 Sysco Way Atlanta GA 30039 Shareholder Elroy Elders 756-12-5555 50 Sysco Way Atlanta GA 30039 Shareholder Farah Fawcett 756-12-6666 60 Sysco Way Atlanta GA 30039 Shareholder Gomez Gonzalez 756-12-7777 70 Sysco Way Atlanta GA 30039 Shareholder

Investor Contribution Date Contribution 1 Contribution 2 Contribution 3 Contribution 4 Net Contributions Sharholder Interest First Name Last Name SSN Item Value Item Value Item Value Item Value Andrew Anderson 756-12-1111 4/2/2013 Cash $50,000 $50,000 10% Bill Bacon 756-12-2222 4/2/2013 Cash $150,000 $150,000 31% Cathy Cox 756-12-3333 4/2/2013 Cash $100,000 $100,000 20% Doris Day 756-12-4444 4/2/2013 Cash $50,000 $50,000 10% Elroy Elders 756-12-5555 4/2/2013 Cash $40,000 $40,000 8% Farah Fawcett 756-12-6666 4/2/2013 Cash $30,000 Land $50,000 $80,000 16% Gomez Gonzalez 756-12-7777 4/2/2013 Cash $10,000 Computer $7,000 Furniture $3,000 $20,000 4% 100%

BADEC, Inc 4/2/2013 Assets Cash $ 430,000 Computer $ 7,000 Furniture $ 3,000 Land $ 50,000 Total Assets $ 490,000 Liabilities Equity Capital-Anderson $ 50,000 Capital-Bacon $ 150,000 Capital-Cox $ 100,000 Capital-Day $ 50,000 Capital-Elders $ 40,000 Capital-Fawcett $ 80,000 Capital-Gonzalez $ 20,000 Total Liabilities plus Equity $ 490,000

BADEC, Inc. 04/02/2013 - 12/31/2013 Gross Income Repair Revenue $100,000 Interest Income $600 Dividends (Qualified) $2,000 Net Short-term Capital Gain $5,000 Total Income from all sources $107,600 Expenses Guaranteed payments $10,000 Renovation Expense $5,500 Rent $1,500 Depreciaton expense $2,066 Licenses $500 Travel Expenses $800 Supplies Expenses $700 Net Long-term Capital Loss $10,000 Charitable Contributions $5,000 Total Expenses $36,066 Net Income (before federal income taxes) $71,534

BADEC Partnership 12/31/2013 Assets Cash $ 485,600 Computer $ 7,000 AccDep-Computer $ (1,745) Furniture $ 3,000 AccDep-Furniture $ (321) Land $ 50,000 Total Assets $ 543,534 Liabilities Equity Retained Earnings $ 53,534 Stock-Anderson $ 50,000 Stock-Bacon $ 150,000 Stock-Cox $ 100,000 Stock-Day $ 50,000 Stock-Elders $ 40,000 Stock-Fawcett $ 80,000 Stock-Gonzalez $ 20,000 Total Liabilities plus Equity $ 543,534

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