· For this assignment, you will complete tax returns (Corporation Return ), You may use the tax software found at .intuit.com/tax/proseries/”>http://accountants.intuit.com/tax/proseries/
Please note there is a limit of 5 returns per session.
Tax Return -Corporate Return
Background
Jane Collier, James Taye, and Steve Allwine each own one-third of the common stock of Tasty Treats and Beverages. The corporation was incorporated on April 3, 2004. It has only one class of stock outstanding and operates as a C corporation for tax purposes. Tasty Treats and Beverages caters kid-friendly social events.
· Located at 1215 Blue Horizon, Dallas, TX 12234.
· Employer Identification Number is 12-34567890.
· Business activity is catering food. Its business activity code is 722300.
· The shareholders also work as officers for the corporation as follows:
o Jane is the chief executive officer and president (Social Security number 242-62-5786).
o James is the executive vice president and chief operating officer (Social Security number 563-58-8923).
o Steve is the vice president of finance (Social Security number 575-58-1572).
· All officers devote 100% of their time to the business
· All officers are U.S. citizens.
· Use the accrual method of accounting and have a calendar year-end.
· Four equal estimated tax payments of $28,000 each quarter. Its tax liability last year was $85,000.
· If it has overpaid its federal tax liability, the corporation would like to receive a refund.
· Dividend paid of $20,000 to its shareholders on October 1. The Corporation had ample earnings and profits (E&P) to absorb the distribution.
Financial Statements
Tasty Treats and Beverages, Inc.
Income Statement
For year ended December 31, 2013
Revenue from sales
1,500,000
Sales returns and allowances
(25,000)
Cost of goods sold
(325,000)
Gross profit from operations
1,150,000
Other Income:
Capital loss
(7,500)
Dividend income
15,000
Interest income
12,000
Gross income
1,169,500
Expenses:
Compensation
(750,000)
Depreciation
(12,000)
Bad debt expense
(7,800)
Meals and entertainment
(3,000)
Maintenance
(2,500)
Property taxes
(10,000)
State income taxes
(30,000)
Other taxes
(11,000)
Rent
(28,000)
Interest
(7,300)
Advertising
(6,200)
Professional services
(5,000)
Employee benefits
(8,000)
Supplies
(2,500)
Other expenses
(1,750)
Total expenses
(885,050)
Income before taxes
284,450