Question
Please do not fill it in form 1120 Form 1120-S Practice Tax Return Facts in 2015: ABC Inc., a S Corporation, 123 Oak Dr Houston
Please do not fill it in form 1120
Form 1120-S Practice Tax Return
Facts in 2015:
ABC Inc., a S Corporation, 123 Oak Dr Houston TX 77002
EIN-74-111111
Date S election effective- 1/1/2000
Date Incorporated 1/1/2000
Business Activity, retail sales (product-clothing)
Business Code 99999
The corporation is a cash basis business
Total Assets $5,000,000
Gross Receipts $1,000,000
Cost of Goods Sold $400,000 (assume no beginning and ending inventory and purchases are $400,000)
ABC Inc. uses the lower of cost or market method for valuing inventory and also
uses the FIFO method for determining the cost of goods sold
Compensation to Bee Jones, 40% shareholder/President was $200,000
ABC Inc. has three shareholders (Bee Jones 40%, John Smith 40% and Julie
Smart 20%).All shareholders materially participate in the business.
Salaries and wages paid to employees were $50,000
Office Rent paid for corporate office was $10,000
Supplies expense totaled $40,000
The corporation received insurance proceeds of $150,000 for life insurance on a
key executive.Relative insurance premiums paid for the year were $5,000.
Beginning Balances:Accumulated Adjustments Account $100,000
Other Adjustments Account$25,000
Net Income per Books was $445,000 including Life insurance proceeds of
$150,000 and Life Insurance Premiums of $5,000.
There were no distributions made to the shareholders.
The corporation has no debts.
The corporation has engaged you to prepare the 2015 Form 1120-S (pages 1-5 excluding
Schedule L on page 4) for the ABC, Inc... Also, prepare the Schedule K-1 for Bee Jones,
40% shareholder (SSN:123-45-6789).Be sure to sign the return as the preparer.
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