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