Bottle-Up, Inc., was organized on January 8, 2010, and made its S election on January 24, 2010. The necessary consents to the election were filed in a timely manner. Its address is 1234 Hill Street, City, ST 33333. Bottle-Up uses the calendar year as its tax year, the accrual method of accounting, and the first-in, first-out (FIFO) inventory method. Bottle-Up manufactures ornamental glass bottles. It made no changes to its inventory costing methods this year. It uses the specific identification method for bad debts for book and tax purposes. Herman Hiebert and Melvin Jones own 500 shares each. Both individuals materially participate in Bottle-Up’s single activity. Herman Hiebert is the tax matters person. Financial statements for Bottle-Up for the current year are shown in Tables C:11-2 through C:11-4. Prepare a 2019 S corporation tax return for Bottle-Up, showing yourself as the paid preparer.

Transcribed Image Text:

TABLE C:11-2 Bottle-Up, Inc. Income Statement for the Year Ended December 31 of the Current Year (Problem C:11-61) Sales $2,500,000 (15,000) $2,485,000 Returns and allowances Net sales Beginning inventory Purchases Labor (W-2 wages) Supplies Utilities $ 102,000 900,000 200,000 80,000 100,000 188,000 Other manufacturing costs Goods available for sale $1,570,000 Ending inventory (96,000) 1,474,000 Gross profit Salaries Utilities expense Depreciation (MACRS depreciation is $36,311)b Automobile and truck expense Office supplies expense Advertising expense Bad debts expense Rent expense Interest expense Meals and entertainment expense Selling expenses Repairs and maintenance expense Accounting and legal expense Charitable contributions $1,011,000 $ 451,020 54,000 11,782 26,000 9,602 105,000 620 30,000 1,500 12,500 108,500 38,000 4,500 9,000