My Profesor wants us to fill out the Tax forms 1120s, 125a 1120ssd, 1120ssk, 4797, and 4562 given the following information

Facts: William Spicer (SS# 123-45-6789) owns 80 percent of the stock in Bill's Market, an accrual basis gourmet food market operating as an S Corporation. It is located at 387 Spring Street, Raleigh, NC 29288. William's wife, June (SS# 987-65-4321), owns the other 20 percent of the outstanding stock of the corporation but she is not active in the business. The Market's EIN is 79-7979797 and its business code is 445290. It was incorporated on July 15, 2008 and was granted S Corp. status on that date. During the last tax year, the Market had the following results from its operations: Gross sales ($1,300,000 from credit card sales) $2,700,000 Merchandise purchases 1,980,000 Expenses: Advertising $40,000 Charitable contributions 2,000 Cleaning/maintenance 12,000 Depreciation (MACRS pre-2019 purchases) 3,000 Section 179 expense (2/1/19 display case) 5,000 Payroll taxes (excluding FICA on William's salary) 18,000 FICA on William's salary 10,247 William's salary 200,000 Health insurance 15,000* Insurance (excludes health) 18,000 Interest expense 1,000 Licenses/fees 4,000 Meals 1,000 Office expenses 14,000 Rent 120,000 Salary/wages 210,000 Travel 8,000 Utilities 16,000 *Includes $3,000 for health insurance for William and his family. The Market sold a unique piece of equipment for $13,000. It had originally cost $5,000 when purchased on March 5, 2017; it had an adjusted basis of $3,000 when sold on August 15, 2019. The Market also sold a display case for $1,000 on December 12, 2019, that had cost $12,000 when purchased on June 6, 2013; it had an adjusted basis of $4,000 when sold. The gains or losses on these asset sales are the same for tax and financial accounting. The business complies with all Form 1099 requirements. Information specific to the corporate form: The Corporation made estimated payments for its own taxes of $10,000 and withheld $45,000 from William's salary for income taxes. For financial accounting, the corporation does not expense the new display case but deducts $1,000 of depreciation expense. It has a beginning balance of $200,000 in its retained earnings account and made a $25,000 dividend distribution to its shareholders on December 31, 2019. The corporation's beginning and ending accrual-basis balance sheets for 2017 are shown below: January 1, 2019 December 31, 2019 Assets: Cash $62,000 $49,214 Accounts Receivable 37,500 37,500 Inventory 340,000 340,000 Tax Refund 5,543 P.P & E $80,000 $68,000 Less: A/D 62,000 59,000 9,000 $441,257 Net P.P & E 18,000 Total Assets $457,500 Liabilities and Equities: Accounts Payable $20,000 0 0 $840 Deferred Tax Liability Note Payable Common Stock Retained Earnings Total Liab. & Equity 12,500 225,000 200,000 $457,500 12,500 225,000 202,917 $441,257 Required: The completion of the Form 1120 for the corporation is straightforward. The income and expense items are reported on Form 11205 except for the following items: Form 1125-A is used to report cost of goods sold. Form 4797 is used to report the asset sales including the depreciation recapture. In completing Form 4797, the equipment subject to recapture is entered in Part III. The net Section 1231 gain is determined in Part I and the $2,000 recapture is transferred to Part II. The recapture is then included directly in corporate income on line 4, Form 1120s. The $5,000 Section 1231 net gain is entered on line 11, Schedule D, and is reported on teach Shareholder's Schedule K-1. Form 4562 includes the depreciation expense and the Section 179 expense. Depreciation expense is deducted on Page 1, while the Section 179 deduction is separately stated on the Schedule K-1 for each shareholder. The FICA taxes on William's salary of $200,000 are determined ($10,786) and deducted from taxable income along with the other deductible corporate expenses. The corporation deducts the health insurance paid for William and his family as he is an employee. The deduction for the charitable contribution is not limited as it is passed on to the shareholders. The corporation pays an income tax of $4,538 to the IRS for a settlement of taxes from many years ago. The overpayment of $5,462 is refunded to the corporation. Facts: William Spicer (SS# 123-45-6789) owns 80 percent of the stock in Bill's Market, an accrual basis gourmet food market operating as an S Corporation. It is located at 387 Spring Street, Raleigh, NC 29288. William's wife, June (SS# 987-65-4321), owns the other 20 percent of the outstanding stock of the corporation but she is not active in the business. The Market's EIN is 79-7979797 and its business code is 445290. It was incorporated on July 15, 2008 and was granted S Corp. status on that date. During the last tax year, the Market had the following results from its operations: Gross sales ($1,300,000 from credit card sales) $2,700,000 Merchandise purchases 1,980,000 Expenses: Advertising $40,000 Charitable contributions 2,000 Cleaning/maintenance 12,000 Depreciation (MACRS pre-2019 purchases) 3,000 Section 179 expense (2/1/19 display case) 5,000 Payroll taxes (excluding FICA on William's salary) 18,000 FICA on William's salary 10,247 William's salary 200,000 Health insurance 15,000* Insurance (excludes health) 18,000 Interest expense 1,000 Licenses/fees 4,000 Meals 1,000 Office expenses 14,000 Rent 120,000 Salary/wages 210,000 Travel 8,000 Utilities 16,000 *Includes $3,000 for health insurance for William and his family. The Market sold a unique piece of equipment for $13,000. It had originally cost $5,000 when purchased on March 5, 2017; it had an adjusted basis of $3,000 when sold on August 15, 2019. The Market also sold a display case for $1,000 on December 12, 2019, that had cost $12,000 when purchased on June 6, 2013; it had an adjusted basis of $4,000 when sold. The gains or losses on these asset sales are the same for tax and financial accounting. The business complies with all Form 1099 requirements. Information specific to the corporate form: The Corporation made estimated payments for its own taxes of $10,000 and withheld $45,000 from William's salary for income taxes. For financial accounting, the corporation does not expense the new display case but deducts $1,000 of depreciation expense. It has a beginning balance of $200,000 in its retained earnings account and made a $25,000 dividend distribution to its shareholders on December 31, 2019. The corporation's beginning and ending accrual-basis balance sheets for 2017 are shown below: January 1, 2019 December 31, 2019 Assets: Cash $62,000 $49,214 Accounts Receivable 37,500 37,500 Inventory 340,000 340,000 Tax Refund 5,543 P.P & E $80,000 $68,000 Less: A/D 62,000 59,000 9,000 $441,257 Net P.P & E 18,000 Total Assets $457,500 Liabilities and Equities: Accounts Payable $20,000 0 0 $840 Deferred Tax Liability Note Payable Common Stock Retained Earnings Total Liab. & Equity 12,500 225,000 200,000 $457,500 12,500 225,000 202,917 $441,257 Required: The completion of the Form 1120 for the corporation is straightforward. The income and expense items are reported on Form 11205 except for the following items: Form 1125-A is used to report cost of goods sold. Form 4797 is used to report the asset sales including the depreciation recapture. In completing Form 4797, the equipment subject to recapture is entered in Part III. The net Section 1231 gain is determined in Part I and the $2,000 recapture is transferred to Part II. The recapture is then included directly in corporate income on line 4, Form 1120s. The $5,000 Section 1231 net gain is entered on line 11, Schedule D, and is reported on teach Shareholder's Schedule K-1. Form 4562 includes the depreciation expense and the Section 179 expense. Depreciation expense is deducted on Page 1, while the Section 179 deduction is separately stated on the Schedule K-1 for each shareholder. The FICA taxes on William's salary of $200,000 are determined ($10,786) and deducted from taxable income along with the other deductible corporate expenses. The corporation deducts the health insurance paid for William and his family as he is an employee. The deduction for the charitable contribution is not limited as it is passed on to the shareholders. The corporation pays an income tax of $4,538 to the IRS for a settlement of taxes from many years ago. The overpayment of $5,462 is refunded to the corporation