Please answer on Tax forms
ax Form/Return Preparation Problems C:11-61 Bottle-Up, Inc., was organized on January 8, 2010, and made its S election on January 24, 2010. The necessary consents to the election were filed in a timely manner. Its address is 1234 Hill Street, City, ST 33333. Bottle-Up uses the calendar year as its tax year, the accrual method of accounting, and the first-in, first-out (FIFO) inventory method. Bottle-Up manufactures ornamental glass bottles. It made no changes to its inventory costing methods this year. It uses the specific identification method for bad debts for book and tax purposes. Herman Hiebert and Melvin Jones own 500 shares each. Both individuals materially participate in Bottle-Up's single activity. Herman Hiebert is the tax matters person. Financial statements for Bottle-Up for the current year are shown in Tables C:11-2 through C:11-4 corporation tax return for Bottle-Up, showing yourself as the paid preparer. Table C:11-2 Bottle-Up. Inc. Income Statement for the Year Ended December 31 of the Current Year (Problem C:11-61 ) a Officer salaries of $120,000 are included in the total. All are employer's W2 wages. b The AMT depreciation adjustment on personal property is $9,000. "Investment interest expense is $500. All other interest expense is trade- or business-related. None of the interest expense relates to the production of tax-exempt income. d Of $12,500 total, $4,000 allocated to meals and $8,500 allocated to entertainment. e The corporation made all contributions in cash to qualifying charities. f Includes $3,000 of premiums paid for policies on lives of corporate officers. Bottle-Up is the beneficiary for both policies. 9 The corporation acquired the capital assets on March 3, 2017 for $100,000 and sold them on September 15, 2019, for $148,666. h The corporation acquired the Sec. 1231 property on June 5, 2018 for $10,000 and sold it on December 21,2019 , for $8,900. Table C:11-3 Bottle-Up, Inc. Balance Sheet for January 1 and December 31 of the Current Year (Problem C:11-61 ) Table C:11-4 Bottle-Up, Inc. Statement of Change in Retained Earnings, for the Current Year Ended December 31 (Problem C:11-61 ) a The January 1 accumulated adjustments account balance is $274,300. ax Form/Return Preparation Problems C:11-61 Bottle-Up, Inc., was organized on January 8, 2010, and made its S election on January 24, 2010. The necessary consents to the election were filed in a timely manner. Its address is 1234 Hill Street, City, ST 33333. Bottle-Up uses the calendar year as its tax year, the accrual method of accounting, and the first-in, first-out (FIFO) inventory method. Bottle-Up manufactures ornamental glass bottles. It made no changes to its inventory costing methods this year. It uses the specific identification method for bad debts for book and tax purposes. Herman Hiebert and Melvin Jones own 500 shares each. Both individuals materially participate in Bottle-Up's single activity. Herman Hiebert is the tax matters person. Financial statements for Bottle-Up for the current year are shown in Tables C:11-2 through C:11-4 corporation tax return for Bottle-Up, showing yourself as the paid preparer. Table C:11-2 Bottle-Up. Inc. Income Statement for the Year Ended December 31 of the Current Year (Problem C:11-61 ) a Officer salaries of $120,000 are included in the total. All are employer's W2 wages. b The AMT depreciation adjustment on personal property is $9,000. "Investment interest expense is $500. All other interest expense is trade- or business-related. None of the interest expense relates to the production of tax-exempt income. d Of $12,500 total, $4,000 allocated to meals and $8,500 allocated to entertainment. e The corporation made all contributions in cash to qualifying charities. f Includes $3,000 of premiums paid for policies on lives of corporate officers. Bottle-Up is the beneficiary for both policies. 9 The corporation acquired the capital assets on March 3, 2017 for $100,000 and sold them on September 15, 2019, for $148,666. h The corporation acquired the Sec. 1231 property on June 5, 2018 for $10,000 and sold it on December 21,2019 , for $8,900. Table C:11-3 Bottle-Up, Inc. Balance Sheet for January 1 and December 31 of the Current Year (Problem C:11-61 ) Table C:11-4 Bottle-Up, Inc. Statement of Change in Retained Earnings, for the Current Year Ended December 31 (Problem C:11-61 ) a The January 1 accumulated adjustments account balance is $274,300
