Option #1: Corporate Tax Returns Review the grading rubric below to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment. Because it is important for accountants to demonstrate the filing requirements for specialized tax returns, for this final project you will complete a corporate tax return and provide an analysis of the ethical considerations related to tax preparation involving corporations. Key Components: Use the financial data below to complete Form 1120. Complete the Student Template (provided in Module 8 under this assignment) that has the respective tax forms and schedules required to complete the return. Complete all the parts of your respective business tax return for which there is information. Click this link to download Form 1120c from IRS.gov. Complete the return for BADEC. In a separate document: 1. Show your income tax calculations. 2. Prepare a write-up on analysis of the ethical considerations related to tax preparation. Corporation Entity Type: Sub-Entity Type: Entity Name: State of Formation Entity Start Date BADEC Tax Year Start Date: Tax Year End Date: 4/3/2013 12/31/2013 Book Maintained By: Address: Andrew Anderson 10 Sysco Way Atlanta, GA 30039 Purpose of Entity Acquire, rehabilitate and resale residential real property. Dividenda Received from investment in a domestic corporations with ownershi 70% Investor Information First N LASIM AN 10 9200 Way Manta Ananaa Alana STRIA GA GA A PI 30029 300391 3739 Farah CCM? Fawcell Con 758-12 GREE 29-12-7772 Contribution Contribution Contribution 4 T Vale N Contribution First Name Last Name 756-12-1111 6-12-2222 706-12-3333 756-12-4444 Contribution Date Contribution 4 ,92013 Cash 4 122013 Ch 4 222013 105 4 /22013 Cash Fancell 756 12-TTTT ce 19966 4 27013 2013 Toch Cash $90.09 Land $10,000 Computer S7000 Fue $3.000 TROLE BADEC Income Statement 1/1/2008-12/31/2008 BADEC Balance Sheet 1/2/2008 BADEC. Inc. 04/02/2013 - 12/31/2013 BADEC, Inc 4/2/2013 Assets Cash Computer Furniture Land Toral Assers Liabilities $ $ $ S $ 430 000 7000 3000 50.000 490,000 Gross Income Repair Revenue Interest Income Dividerds (Qualified Net Short-term Capital Gain Total Income from all sources S100 000 $600 $2.000 S5 000 S107,600 Equity $ $ Capital-Anderson Capital-Bacon Capital.Cox Capital-Day Capital-Eldiers Capital-Fawcett Capital Gonzalez Torel Liebesus Equity 50.000 150.000 100 000 50.000 40.000 80.000 20.000 490,000 $ $ $ Expenses Guaranteed payments Renovation Expertene Rent Depreciaton expense Licenses Travel Expenses Supplies Expenses Nel Long-term Capital Loss Charitable Contributions Total Expenses $10.000 $5,500 $1.500 $2.0186 $500 5800 $700 $10.000 S5.000 $36,066 Net Income (before federal income taxes $71.534 BADEC Balance Sheet 12.2008 BADEC Partnership 12/31/2013 Cash Dividend Distribution lo- Elders Cash Dividend Distribution to Fawcett Cash Dividend Distribution to Gonzalez S5 000 56 000 87.000 $ 3 Assets Cash Computer Accep-Computer Furniture Accep Furniture Land Total Assets Liabilities 485,600 7.000 (1.745) 9000 1321) 50.000 543,534 $ Equity 3 $ g Retained Earnings Stock Anderson Stock Bacon Stock Cox Stock Day Stock Elders Stock-Fawcett Stock-Gonzalez Total Liebwies plus Equity $ 53.534 50.000 150.000 100.000 50.000 40.000 80.000 20.000 543.534 $ $ Form 1120 Department of the Treasury Internal Revenue Service A Check it 1a Consolidated return attach Form 951) U butononlife consoli U.S. Corporation Income Tax Return OMB No. 1545-0123 For calendar year 2019 or tax year beginning ... 2019, ending 2019 Go to www.irs.gov/Form 1120 for instructions and the latest information. B Employer identification number TYPE Number, street and room or suite no. If a P.O.box, see instructions C Date incorporated dated retur. OR Income 13 2 Personal holding PRINT attach Sch Phi City or town, state or province, country, and ZIP or foreign postal code D Total assets see instructions 3 Personal service corp. - instructions 4 Schedule M-3 mached | E Check it (1) Initial retur (2) Final retum 1 3) Name change 14 Address change ta Gross receipts or sales . . . . . . . . . . . . . . . . 1a b Returns and allowances . . . . . . . . . . . . . . . . 11h 1b c Balance. Subtract line 1b from line 1a - . . . . . . . . . . . . . . . . . . . 2 Cost of goods sold attach Form 1125-A). . . . . . . . . . . . . . . . . . Gross profit. Subtract line 2 from line 1c. . . . . . . . . . . . . . . . . 4 Dividends and inclusions (Schedule C, line 23).. .. .. . 5 Interest . . . . . . . . . . . . . . . . 6 Gross rents . . . . . . . . . . . . . . 7 Gross royalties . . .. Capital gain net income (attach Schedule D (Form 1120). 9 Net gain or loss) from Form 4797, Part II, line 17 (attach Form 4797) . .. . . .. .. 10 Other income see instructions-attach statement) . . . . . . . . . . . . 11 Total income. Add lines 3 through 10 - . . . . . . . . . . . . . . 12 Compensation of officers (see instructions-attach Form 1125-E) . . . . . . . . . . . . Salaries and wages dess employment credits . . . . . . . . . . . . . 14 Repairs and maintenance . . . . . Bad debts. . . . . . . . . . . . . . . . . . . . . . . . . . 16 Pents . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . . Charitable contributions. . . . . . . . . . . . . . . . . . . . . . Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) Depletion . . . . . . . . . . . . . . . . . . . . . . . . . Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . Pension, profit-sharing, etc.. plans . . . . . . . . . . . . . . . . . . . . 24 Employee benefit programs . . . . .. . . .. . . . .. . . . .. . . . 25 Reserved for future use. . . . . . . . . . . . . . . . . . . . . . . 26 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . 27 Total deductions. Add lines 12 through 26. .................. 28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11.. 29a Net operating loss deduction (see instructions) . . . . . . . . . . . 29a X1 Special deductions (Schedule C, line 24) . .. . .. . 29h .. . .. 206 c Add lines 29a and 29b. 1 30 Taxable income. Subtract line 29c from line 28. See instructions . . . . . . . . . . . . . 30 31 Total tax (Schedule J. Part I. line 11). . 8.32 2019 net 965 tax liability paid (Schedule J, Part II, line 12).. .. . . .. .. . .. 32 33 Total payments, credits, and section 965 net tax liability (Schedule J. Part III, line 23). .. .. . 34 Estimated tax penalty. See instructions. Check it Form 2220 is attached .. . .. .... 34 35 Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed . ... 35 Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid.. .. . 36 37 37 Enter amount from line 36 you want: Credited to 2020 estimated tax Refunded Under penalties of purjury, I declare that I have examined this burn, including accompanying schedules and statements, and to the best of my knowledge and belied, it is true, correct and complete Declaration of prepare fother than axpayeriscional information of which preparar has any knowledge Sign May the IRS discuss this retum with the prepare shown below? Here See instructions. Yes No Signature of officer Print/Type preparer's name Preparer's signature Paid self-employed Preparer Firm's name Fimm's EIN Use Only Firm's address Phone no. For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 114500 Form 1120 2019) (See instructions for limitations on deductions.) 23 33 36 IPTIN Check Farms Page 2 Form 1120 (2019) Schedule C Dividends, inclusions, and Special Deductions (see instructions) al Dividends and inclusions b) Special deductions (a) (b) 1 Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . Dividends from 20%-or-more-owned domestic corporations (other than debt financed 50 2 65 Dividends on certain debt-financed stock of domestic and foreign corporations . nistrations Dividends on certain preferred stock of less-than-20%-owned public utilities .. . 23.3 Dividends on certain preferred stock of 20%-or-more-owned public utilities. . .. 26.7 Dividends from less-than-20%-owned foreign corporations and certain FSCS.. . 50 Dividends from 20%-or-more-owned foreign corporations and certain FSCS .. . 65 Dividends from wholly owned foreign subsidiaries . . . . . . . . . 100 non Subtotal. Add lines 1 through 8. See instructions for limitations. . . . . . . Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 . . .. 100 11 Dividends from affiliated group members. . . . . . . . . . . . 100 100 Dividends from certain FSCS . . . . . . . . . . . . . . . . . Foreign-source portion of dividends received from a specified 10%-owned foreign corporation (excluding hybrid dividends) (see instructions) . . . . . . . . Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13 (including any hybrid dividends) . . . . . . . . . . 100 ristruction 100 Section 965(a) inclusion . . . . . . . . . . . Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Formis) 5471) (see instructions) . . . . . . . Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions) . . . . . . . . . . .. . . . . . . . . Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17 attach Forms) 5471) (see instructions). . . . . . . . . . . b Global Intangible Low-Taxed Income (GILTI) (attach Forms) 5471 and Form 8992). . Gross-up for foreign taxes deemed paid..... . . .. .. . IC-DISC and former DISC dividends not included on line 1, 2, or 3 .. Other dividends . . . . . . . . . . . . . . Deduction for dividends paid on certain preferred stock of public utilities . . 22 Section 250 deduction (attach Form 1993) . .. . . . . .. . .. . Total dividends and inclusions. Add column (a), lines 9 through 20. Enter here and on page 1. line 4 . . . . . . . . . . . . . . . . . . . . . Total special deductions. Add column (c), lines 9 through 22. Enter here and on page 1. line 29b. 24 . . . . . . Form 1120 (2019) Option #1: Corporate Tax Returns Review the grading rubric below to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment. Because it is important for accountants to demonstrate the filing requirements for specialized tax returns, for this final project you will complete a corporate tax return and provide an analysis of the ethical considerations related to tax preparation involving corporations. Key Components: Use the financial data below to complete Form 1120. Complete the Student Template (provided in Module 8 under this assignment) that has the respective tax forms and schedules required to complete the return. Complete all the parts of your respective business tax return for which there is information. Click this link to download Form 1120c from IRS.gov. Complete the return for BADEC. In a separate document: 1. Show your income tax calculations. 2. Prepare a write-up on analysis of the ethical considerations related to tax preparation. Corporation Entity Type: Sub-Entity Type: Entity Name: State of Formation Entity Start Date BADEC Tax Year Start Date: Tax Year End Date: 4/3/2013 12/31/2013 Book Maintained By: Address: Andrew Anderson 10 Sysco Way Atlanta, GA 30039 Purpose of Entity Acquire, rehabilitate and resale residential real property. Dividenda Received from investment in a domestic corporations with ownershi 70% Investor Information First N LASIM AN 10 9200 Way Manta Ananaa Alana STRIA GA GA A PI 30029 300391 3739 Farah CCM? Fawcell Con 758-12 GREE 29-12-7772 Contribution Contribution Contribution 4 T Vale N Contribution First Name Last Name 756-12-1111 6-12-2222 706-12-3333 756-12-4444 Contribution Date Contribution 4 ,92013 Cash 4 122013 Ch 4 222013 105 4 /22013 Cash Fancell 756 12-TTTT ce 19966 4 27013 2013 Toch Cash $90.09 Land $10,000 Computer S7000 Fue $3.000 TROLE BADEC Income Statement 1/1/2008-12/31/2008 BADEC Balance Sheet 1/2/2008 BADEC. Inc. 04/02/2013 - 12/31/2013 BADEC, Inc 4/2/2013 Assets Cash Computer Furniture Land Toral Assers Liabilities $ $ $ S $ 430 000 7000 3000 50.000 490,000 Gross Income Repair Revenue Interest Income Dividerds (Qualified Net Short-term Capital Gain Total Income from all sources S100 000 $600 $2.000 S5 000 S107,600 Equity $ $ Capital-Anderson Capital-Bacon Capital.Cox Capital-Day Capital-Eldiers Capital-Fawcett Capital Gonzalez Torel Liebesus Equity 50.000 150.000 100 000 50.000 40.000 80.000 20.000 490,000 $ $ $ Expenses Guaranteed payments Renovation Expertene Rent Depreciaton expense Licenses Travel Expenses Supplies Expenses Nel Long-term Capital Loss Charitable Contributions Total Expenses $10.000 $5,500 $1.500 $2.0186 $500 5800 $700 $10.000 S5.000 $36,066 Net Income (before federal income taxes $71.534 BADEC Balance Sheet 12.2008 BADEC Partnership 12/31/2013 Cash Dividend Distribution lo- Elders Cash Dividend Distribution to Fawcett Cash Dividend Distribution to Gonzalez S5 000 56 000 87.000 $ 3 Assets Cash Computer Accep-Computer Furniture Accep Furniture Land Total Assets Liabilities 485,600 7.000 (1.745) 9000 1321) 50.000 543,534 $ Equity 3 $ g Retained Earnings Stock Anderson Stock Bacon Stock Cox Stock Day Stock Elders Stock-Fawcett Stock-Gonzalez Total Liebwies plus Equity $ 53.534 50.000 150.000 100.000 50.000 40.000 80.000 20.000 543.534 $ $ Form 1120 Department of the Treasury Internal Revenue Service A Check it 1a Consolidated return attach Form 951) U butononlife consoli U.S. Corporation Income Tax Return OMB No. 1545-0123 For calendar year 2019 or tax year beginning ... 2019, ending 2019 Go to www.irs.gov/Form 1120 for instructions and the latest information. B Employer identification number TYPE Number, street and room or suite no. If a P.O.box, see instructions C Date incorporated dated retur. OR Income 13 2 Personal holding PRINT attach Sch Phi City or town, state or province, country, and ZIP or foreign postal code D Total assets see instructions 3 Personal service corp. - instructions 4 Schedule M-3 mached | E Check it (1) Initial retur (2) Final retum 1 3) Name change 14 Address change ta Gross receipts or sales . . . . . . . . . . . . . . . . 1a b Returns and allowances . . . . . . . . . . . . . . . . 11h 1b c Balance. Subtract line 1b from line 1a - . . . . . . . . . . . . . . . . . . . 2 Cost of goods sold attach Form 1125-A). . . . . . . . . . . . . . . . . . Gross profit. Subtract line 2 from line 1c. . . . . . . . . . . . . . . . . 4 Dividends and inclusions (Schedule C, line 23).. .. .. . 5 Interest . . . . . . . . . . . . . . . . 6 Gross rents . . . . . . . . . . . . . . 7 Gross royalties . . .. Capital gain net income (attach Schedule D (Form 1120). 9 Net gain or loss) from Form 4797, Part II, line 17 (attach Form 4797) . .. . . .. .. 10 Other income see instructions-attach statement) . . . . . . . . . . . . 11 Total income. Add lines 3 through 10 - . . . . . . . . . . . . . . 12 Compensation of officers (see instructions-attach Form 1125-E) . . . . . . . . . . . . Salaries and wages dess employment credits . . . . . . . . . . . . . 14 Repairs and maintenance . . . . . Bad debts. . . . . . . . . . . . . . . . . . . . . . . . . . 16 Pents . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . . Charitable contributions. . . . . . . . . . . . . . . . . . . . . . Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) Depletion . . . . . . . . . . . . . . . . . . . . . . . . . Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . Pension, profit-sharing, etc.. plans . . . . . . . . . . . . . . . . . . . . 24 Employee benefit programs . . . . .. . . .. . . . .. . . . .. . . . 25 Reserved for future use. . . . . . . . . . . . . . . . . . . . . . . 26 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . 27 Total deductions. Add lines 12 through 26. .................. 28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11.. 29a Net operating loss deduction (see instructions) . . . . . . . . . . . 29a X1 Special deductions (Schedule C, line 24) . .. . .. . 29h .. . .. 206 c Add lines 29a and 29b. 1 30 Taxable income. Subtract line 29c from line 28. See instructions . . . . . . . . . . . . . 30 31 Total tax (Schedule J. Part I. line 11). . 8.32 2019 net 965 tax liability paid (Schedule J, Part II, line 12).. .. . . .. .. . .. 32 33 Total payments, credits, and section 965 net tax liability (Schedule J. Part III, line 23). .. .. . 34 Estimated tax penalty. See instructions. Check it Form 2220 is attached .. . .. .... 34 35 Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed . ... 35 Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid.. .. . 36 37 37 Enter amount from line 36 you want: Credited to 2020 estimated tax Refunded Under penalties of purjury, I declare that I have examined this burn, including accompanying schedules and statements, and to the best of my knowledge and belied, it is true, correct and complete Declaration of prepare fother than axpayeriscional information of which preparar has any knowledge Sign May the IRS discuss this retum with the prepare shown below? Here See instructions. Yes No Signature of officer Print/Type preparer's name Preparer's signature Paid self-employed Preparer Firm's name Fimm's EIN Use Only Firm's address Phone no. For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 114500 Form 1120 2019) (See instructions for limitations on deductions.) 23 33 36 IPTIN Check Farms Page 2 Form 1120 (2019) Schedule C Dividends, inclusions, and Special Deductions (see instructions) al Dividends and inclusions b) Special deductions (a) (b) 1 Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . Dividends from 20%-or-more-owned domestic corporations (other than debt financed 50 2 65 Dividends on certain debt-financed stock of domestic and foreign corporations . nistrations Dividends on certain preferred stock of less-than-20%-owned public utilities .. . 23.3 Dividends on certain preferred stock of 20%-or-more-owned public utilities. . .. 26.7 Dividends from less-than-20%-owned foreign corporations and certain FSCS.. . 50 Dividends from 20%-or-more-owned foreign corporations and certain FSCS .. . 65 Dividends from wholly owned foreign subsidiaries . . . . . . . . . 100 non Subtotal. Add lines 1 through 8. See instructions for limitations. . . . . . . Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 . . .. 100 11 Dividends from affiliated group members. . . . . . . . . . . . 100 100 Dividends from certain FSCS . . . . . . . . . . . . . . . . . Foreign-source portion of dividends received from a specified 10%-owned foreign corporation (excluding hybrid dividends) (see instructions) . . . . . . . . Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13 (including any hybrid dividends) . . . . . . . . . . 100 ristruction 100 Section 965(a) inclusion . . . . . . . . . . . Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Formis) 5471) (see instructions) . . . . . . . Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions) . . . . . . . . . . .. . . . . . . . . Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17 attach Forms) 5471) (see instructions). . . . . . . . . . . b Global Intangible Low-Taxed Income (GILTI) (attach Forms) 5471 and Form 8992). . Gross-up for foreign taxes deemed paid..... . . .. .. . IC-DISC and former DISC dividends not included on line 1, 2, or 3 .. Other dividends . . . . . . . . . . . . . . Deduction for dividends paid on certain preferred stock of public utilities . . 22 Section 250 deduction (attach Form 1993) . .. . . . . .. . .. . Total dividends and inclusions. Add column (a), lines 9 through 20. Enter here and on page 1. line 4 . . . . . . . . . . . . . . . . . . . . . Total special deductions. Add column (c), lines 9 through 22. Enter here and on page 1. line 29b. 24 . . . . . . Form 1120 (2019)
