Please, please, please complete form 1120S and schedule K1. This is all the information that i have.

Using the information provided below, complete First Place Inc.s (FPI) 2016 Form 1120S. Also complete Kate Kleibers Schedule K-1.

Form 4562 for depreciation is not required. Include the amount of tax depreciation given in the problem on the appropriate line on the first page of Form 1120S.

If any information is missing use reasonable assumptions to fill in the gaps.

The forms, schedules, and instructions can be found at the IRS Web site (www.irs.gov). The instructions can be helpful in completing the forms.

Facts:

First Place Inc. (FPI) was formed as a corporation on January 5, 2013, by its two owners Kate Kleiber and James Chandler. FPI immediately elected to be taxed as an S corporation for federal income tax purposes. FPI sells mountain climbing gear to retailers throughout the Rocky Mountain region. Kate owns 70 percent of the FPI common stock (the only class of stock outstanding) and James owns 30 percent.

FPI is located at 4200 West 400 North, Salt Lake City, Utah 84116.

FPIs Employer Identification Number is 87-5467544.

FPIs business activity is wholesale sales. Its business activity code is 423910.

Both shareholders work as employees of the corporation.

Kate is the president of FPI (Social Security number 312-89-4567). Kates address is 1842 East 8400 South, Sandy, Utah 84094.

James is the vice president of FPI (Social Security number 321-98-7645). Jamess address is 2002 East 8145 South, Sandy, Utah 84094.

FPI uses the accrual method of accounting and has a calendar year-end.

The following is FPI's income statement:

FPI Income Statement For year ending December 31, 2015

Revenue from sales $980,000

Sales returns and allowances (10,000)

Cost of goods sold (110,000)

Gross profit from operations $860,000

Other income:

Dividend income $ 15,000

Interest income 5,000

Gross income $880,000

Expenses:

Compensation ($600,000)

Depreciation (10,000)

Bad debt expense (14,000)

Meals and entertainment (2,000)

Maintenance (8,000)

Business interest (1,000)

Property taxes (7,000)

Charitable contributions (10,000)

Other taxes (30,000)

Rent (28,000)

Advertising (14,000)

Profesional services (11,000)

Employee benefits (12,000)

Supplies (3,000)

Other expenses (21,000)

Total expenses (771,000)

Net income $109,000

Notes:

1 FPIs purchases during 2016 were $115,000. It values its inventory based on cost using the FIFO inventory cost flow method. Assume the rules of 263A do not apply to FPI.

2 Of the $5,000 interest income, $2,000 was from a West Jordan city bond used to fund public activities (issued in 2007) and $3,000 was from a money market account.

3 FPIs dividend income comes from publicly traded stocks that FPI has owned for two years.

4 FPIs compensation is as follows:

Kate $120,000

James $80,000

Other $400,000.

5 FPI wrote off $6,000 in accounts receivable as uncollectible during the year.

6 FPIs regular tax depreciation was $17,000. AMT depreciation was $13,000.

7 FPI distributed $60,000 to its shareholders.

8 FPI is not required to compute the amount in its accumulated adjustments account.

The following are FPIs book balance sheets as of January 1, 2016, and December 31, 2016.

2016 January 1 December 31

Assets

Cash $ 90,000 $143,000

Accounts receivable 300,000 310,000

Allowance for doubtful accounts (60,000) (68,000)

Inventory 45,000 50,000

State and local bonds 38,000 38,000

Investments in stock 82,000 82,000

Fixed assets 100,000 100,000

Accumulated depreciation (20,000) (30,000)

Other assets 20,000 21,000

Total assets $595,000 $646,000

Liabilities and Shareholders Equity

Accounts payable 60,000 55,000

Other current liabilities 5,000 8,000

Other liabilities 10,000 14,000

Capital stock 200,000 200,000

Retained earnings 320,000 369,000

Total liabilities and

shareholders equity $595,000 646,000