I want to know:

1. Book to Tax Income Statement Reconciliation
2. Section 1033 election
3. Schedule K line 16c support
4. M-1 line 2 & 3b supporting schedules

Detailed information is attached

Real Running Gear Corp. Federal Tax Return FACTS Lisa Boyd developed and patented a line of specialized running attire. The attire is constructed for durability and quick wicking and is made of highly reective materials for nighttime use. Lisa set up Real Running Gear Corp (RRG) to manufacture and sell her products. RRG is a small, closelyheld manufacturer (the business code number is 339900, and the employer identication number is 11- 1111111). The company is located at 325 Ground Road, Cedar City, Utah 84721. The corporation, which uses a calendar year for tax purposes, has been an S corporation since its incorporation on August 2, 2011. Lisa (social security number 111-11-1111) is president of the corporation. Lisa owned 100% of the stock until September 15Ill of the current tax year when she sold 5% to Hannah Boyd (Lisa's daughter, social security number 222-22-2222), who serves as vice president of the company. Both ofcers devote 100 percent of their time to the corporation and live at 333 Opportunity Street, Cedar City, Utah 84720. Annual compensation is $80,000 for Lisa and $40,000 for Hannah. The corporation does not engage in activities to which the at-risk or passive activity loss limitations apply. RRG files its tax return using the accrual method. Inventory has been consistently valued at cost under the FIFO method using the full absorption procedure. Inventory capitalization rules of Internal Revenue code Section 263A do not apply due to the 'small business exceptionS (average annual gross receipts for the three preceding taxable years do not exceed $10 million). The accounting records are computerized. The corporation did not make payments that would require it to le Form(s) 1099