ControlPrepare a completed $2022$ form $1120-$S Prepare the first $5$ pages of the return, the required Schedule K$-1$s$,$ and any other schedules required by the instructions $(4562,4797,$ additional schedules, etc.$).$ABC Corp is a $2$ shareholder Scorp that conducts income tax advsiory services and lititagion. It's percetnages are:

Control$70\%$:

Edward Sullivan

$4012$ Cottonwood Plaza

Los Angeles, CA $90211$

SS# $477-81-0034$

Ed is paid the salary because he works everyday for the corporation as a senior trial attorney and expert witness.

$30\%$

John Smith

$51$ Capital Ave

Los Angeles, CA $90210$

SS# $337-49-03$

office is at $15676$ Costa Del Mesa, Brentwood, CA $90247$ and this is their address for the tax return. Their tax ID# is $47-1978822.$ You will need to look up their business activity code.

They split the shareholder withdrawals and income based on their ownership percentages. The shareholder loan was initially given to Ed to help buy a yacht in $2021.$ He borrowed an additional $$120,000$ in $2022$ to pay for tuition and expenses for his daughter at Oregon and a new Honda for his Son. He pays an acceptable rate of interest to the corporation for the loans, and there is a reasonable repayment schedule and recorded promissory note.

The balance sheet and income statement are accrual, GAAP based statements. They use straight line depreciation for books and MACRS for tax. They would like to Sec. $179$ the furniture and equipment purchased in $2022.$ They had no disposals of any equipment in $2020.$ MACRS depreciation should be $$27,200$ excluding the Sec. $179$ for the equipment purchased. The Sec. $1231$ Gain was from a flow$-$through entity the S$-$Corp owns in their Edward jones investment account, not from an asset disposal. Show as $$From K$-1$ on Form $4797.$

They had actual bad debt write$-$offs in $2022$ of $$64,500.$ The shareholder withdrawals are $$1,800,000$ and made pro$-$rata based on ownership.

They have no foreign accounts and both shareholders are legal citizens.

They elected S$-$Status on January $1,2013$

The corporation doesn$$t own stock in other companies or interests in any other entities other than fractional percentages in their investment account

They have never been a C Corp and have $1$ class of voting stock