Please help.

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-on, 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 the Tables C:11-2 through C:11:4. Prepare a 2019 S corporation tax return for Bottle-up, showing yourself as the paid preparer.

TAX FORM/RETURN PREPARATION PROBLEMS Bottle-Up, Inc., was organized on January 8, 2010, and made its Selection on January 24, 2010. The necessary consents to the election were filed in a timely manner. Its ad- dress 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 individu- als 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. Prepare a 2019 S 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) $2,500,000 (15,000) $2,485,000 $ 102,000 900,000 200,000 80,000 100,000 188,000 $1,570,000 (96,000) 1,474,000 $1,011,000 Sales Returns and allowances Net sales Beginning inventory Purchases Labor (W-2 wages) Supplies Utilities Other manufacturing costs Goods available for sale Ending inventory Gross profit Salaries Utilities expense Depreciation (MACRS depreciation is $36,311) Automobile and truck expense Office supplies expense Advertising expense Bad debts expense Rent expense Interest expenses Meals and entertainment expensed Selling expenses Repairs and maintenance expense Accounting and legal expense Charitable contributions $ 451,020 54,000 11,782 26,000 9,602 105,000 620 30,000 1,500 12,500 108,500 38,000 4,500 9,000 24,500 11,000 36,980 2,500 1,000 (938,004) $ 72,996 Insurance expenset Hourly employees' fringe benefits Payroll taxes Other taxes Penalties (fines for overweight trucks) Operating profit Other income and losses Long-term gain on sale of capital assets Sec 1231 loss Interest on U.S. Treasury bills Interest on State of Florida bonds Dividends from domestic corporations Investment expenses Net income $ 48,6669 (1.100) 1,200 600 11,600 (600) 60.366 $ 133,362 Officer salaries of $120,000 are included in the total. All are employer's W-2 wages 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 ex- pense relates to the production of tax-exempt income of 512,500 total, $4,000 allocated to meals and 58,500 allocated to entertainment The corporation made all contributions in cash to qualifying charities. Includes $3,000 of premiums paid for policies on lives of corporate officers. Bottle-Up is the beneficiary for both policies The corporation acquired the capital assets on March 3, 2017 for $100,000 and sold them on September 15, 2019, for 5148,666. 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) January 1 December 31 Assets Cash $ 15,000 $116,948 Accounts receivable 41,500 45,180 Inventories 102,000 96,000 Stocks 103,000 74.000 Treasury bills 15,000 16,000 State of Florida bonds 10,000 10,000 Building and equipment 375,434 375,000 Minus Accumulated depreciation (161,318) (173,100) Land 160,000 190,000 Total $660,616 $750,028 Liabilities and equities Accounts payable $ 36,000 $ 10,000 Accrued salaries payable 12,000 6,000 Payroll taxes payable 3,416 7,106 Sales taxes payable 5,200 6,560 Due to Mr. Hiebert 10,000 5,000 Mortgage and notes payable (current maturities) 44,000 52,000 Long-term debt 210,000 260,000 Capital stock 10,000 10,000 Retained earnings 330,000 393,362 Total 5660,616 $750,028 TABLE C:11-4 Bottle-Up, Inc. Statement of Change in Retained Earnings, for the Current Year Ended December 31 (Problem C:11-61) $330,000 Balance, January 1 Plus: Net income Minus: Dividends $133,362 (70,000) 63,362 Balance, December 31 $393,362 The January 1 accumulated adjustments account balance is $274,300. Required: Prepare the 2019 S corporation tax return (Form 1120-), including the fol- lowing additional schedules and forms: Schedule D, Form 4562, and Schedule K-1. Optional: (1) Complete Schedule M-2 in Form 1120-S even though the company has never been a C corporation. For this purpose, the accumulated adjustments account at the beginning of 2019 is $171,360. (2) Prepare a schedule for each shareholder's basis in his or her S corporation stock. For this purpose, Bailey's stock basis at the beginning of 2019 is $1,251,408 and Firth's is $2,535,952. TAX FORM/RETURN PREPARATION PROBLEMS Bottle-Up, Inc., was organized on January 8, 2010, and made its Selection on January 24, 2010. The necessary consents to the election were filed in a timely manner. Its ad- dress 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 individu- als 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. Prepare a 2019 S 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) $2,500,000 (15,000) $2,485,000 $ 102,000 900,000 200,000 80,000 100,000 188,000 $1,570,000 (96,000) 1,474,000 $1,011,000 Sales Returns and allowances Net sales Beginning inventory Purchases Labor (W-2 wages) Supplies Utilities Other manufacturing costs Goods available for sale Ending inventory Gross profit Salaries Utilities expense Depreciation (MACRS depreciation is $36,311) Automobile and truck expense Office supplies expense Advertising expense Bad debts expense Rent expense Interest expenses Meals and entertainment expensed Selling expenses Repairs and maintenance expense Accounting and legal expense Charitable contributions $ 451,020 54,000 11,782 26,000 9,602 105,000 620 30,000 1,500 12,500 108,500 38,000 4,500 9,000 24,500 11,000 36,980 2,500 1,000 (938,004) $ 72,996 Insurance expenset Hourly employees' fringe benefits Payroll taxes Other taxes Penalties (fines for overweight trucks) Operating profit Other income and losses Long-term gain on sale of capital assets Sec 1231 loss Interest on U.S. Treasury bills Interest on State of Florida bonds Dividends from domestic corporations Investment expenses Net income $ 48,6669 (1.100) 1,200 600 11,600 (600) 60.366 $ 133,362 Officer salaries of $120,000 are included in the total. All are employer's W-2 wages 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 ex- pense relates to the production of tax-exempt income of 512,500 total, $4,000 allocated to meals and 58,500 allocated to entertainment The corporation made all contributions in cash to qualifying charities. Includes $3,000 of premiums paid for policies on lives of corporate officers. Bottle-Up is the beneficiary for both policies The corporation acquired the capital assets on March 3, 2017 for $100,000 and sold them on September 15, 2019, for 5148,666. 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) January 1 December 31 Assets Cash $ 15,000 $116,948 Accounts receivable 41,500 45,180 Inventories 102,000 96,000 Stocks 103,000 74.000 Treasury bills 15,000 16,000 State of Florida bonds 10,000 10,000 Building and equipment 375,434 375,000 Minus Accumulated depreciation (161,318) (173,100) Land 160,000 190,000 Total $660,616 $750,028 Liabilities and equities Accounts payable $ 36,000 $ 10,000 Accrued salaries payable 12,000 6,000 Payroll taxes payable 3,416 7,106 Sales taxes payable 5,200 6,560 Due to Mr. Hiebert 10,000 5,000 Mortgage and notes payable (current maturities) 44,000 52,000 Long-term debt 210,000 260,000 Capital stock 10,000 10,000 Retained earnings 330,000 393,362 Total 5660,616 $750,028 TABLE C:11-4 Bottle-Up, Inc. Statement of Change in Retained Earnings, for the Current Year Ended December 31 (Problem C:11-61) $330,000 Balance, January 1 Plus: Net income Minus: Dividends $133,362 (70,000) 63,362 Balance, December 31 $393,362 The January 1 accumulated adjustments account balance is $274,300. Required: Prepare the 2019 S corporation tax return (Form 1120-), including the fol- lowing additional schedules and forms: Schedule D, Form 4562, and Schedule K-1. Optional: (1) Complete Schedule M-2 in Form 1120-S even though the company has never been a C corporation. For this purpose, the accumulated adjustments account at the beginning of 2019 is $171,360. (2) Prepare a schedule for each shareholder's basis in his or her S corporation stock. For this purpose, Bailey's stock basis at the beginning of 2019 is $1,251,408 and Firth's is $2,535,952