Must prepare a 2015 Tax return for Smart Pet and I am in need of help. The 2014 Tax return is included as well as a trial balance and other company information.

ACTG 422 Fall 2016 Tax Return Project Background You are working as a paid tax preparer for a local accounting firm. Your boss has asked you to prepare the 2015 corporate tax return for Smart Pet. Documents The package given to you by your boss includes the following items: 1. Prior Year Tax Return (e.g., the 2014 tax return), 2. Trial Balance and 3. Additional Information. The 2014 tax return was prepared by a different accounting firm that has gone out of business. You have no assurance that the 2014 tax return is correct. That is, it may contain an error or errors. Instructions 1. Prepare Form 1120 for 2015. Do not use tax return preparation software. (You would waste time and effort in learning the software). You can either prepare the return by hand or use a form filler type program (usually a pdf file with active fields.) Such forms can be found at the IRS website at www.irs.gov/formspubs/index.html. If you use the forms on the IRS website you must save each form or you will lose your work. 2. You are allowed to work collaboratively with other students. However, the work product that you submit for grading should be your own. Deliverables 1. 2015 Tax Return. a. Form 1120 b. Schedule G Form 1120 c. Form 1125-A d. Form 1125-E e. Supplemental Statements 2. Enter your 4 digit codes (1234) in Paid Preparer's block (PTIN) on page 1 Form 1120. You should sign and date the return (penalties for tax preparers are stiff). You will be penalized if you to not give the 3. Due at the start of class. You need not complete Schedule B Form 1120 or Schedule M-3 Form 1120 or Schedule UTP. Use commas to show thousand and millions. Do not use cents in the amounts. Please use staples to bind your tax return. Do not include instructions or worksheets in your submission. If you have questions, please ask. Smart Pet Additional Information 12/31/2015 12/31/2014 12/31/2015 Details of Allowance for Bad Debts: Beginning of Year Current Year Accrual Accounts Receivable Write-offs End of Year -5,000 -7,000 2,000 -10,000 -10,000 -15,000 5,000 -20,000 Detail of Salaries Alicia Garcia Alison Maxwell Clerical and Sales Salaries 192,000 128,000 290,000 610,000 252,000 168,000 580,000 1,000,000 Detail of Federal Taxes First Quarter Estimated Tax Payment Second quarter Estimated Tax Payment Third Quarter Estimated Tax Payment Fourth Quarter Estimated Tax Payment Total Estimated Tax Payments 37,000 37,000 37,000 37,000 148,000 71,500 71,500 71,500 71,500 286,000 10,000 14,000 24,000 16,000 12,000 28,000 12,000 8,000 20,000 174,000 7,000 181,000 Detail of Interest Income Bank of America Morgan Stanley Interest Income Detail of Interest Expense Bank of American Morgan Stanley Tax Depreciation for the year is $110,000. You do not need to include a Form 4562 since there were no additions in the year. Dividends: Company owns less than 20% of the companies from which it receives dividends. The Company is the Beneficiary of the Key Man Life Insurance Policies. The Key Man Life Insurance Policies have been in effect since before 2008