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Please provide a tax form with the information in the attachment. Required: Using the information provided below, complete First Place Inc.'s (FPI) 2015 Form 1120S.
Please provide a tax form with the information in the attachment.
Required: Using the information provided below, complete First Place Inc.'s (FPI) 2015 Form 1120S. Also complete Kate Kleiber's Schedule K1. 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, 2012, 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. FPI's Employer Identification Number is 875467544. FPI's 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 312894567). Kate's address is 1842 East 8400 South, Sandy, Utah 84094. James is the vice president of FPI (Social Security number 321987645). James's address is 2002 East 8145 South, Sandy, Utah 84094. FPI uses the accrual method of accounting and has a calendar yearend. Page C-11 The following is FPI's 2015 income statement: Notes: 1 FPI's purchases during 2015 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. 1 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. 1 FPI's dividend income comes from publicly traded stocks that FPI has owned for two years. 1 FPI's compensation is as follows: Kate $120,000 James $80,000 Other $400,000. 1 FPI wrote off $6,000 in accounts receivable as uncollectible during the year. 1 FPI's regular tax depreciation was $17,000. AMT depreciation was $13,000. 1 FPI distributed $60,000 to its shareholders. 1 FPI is not required to compute the amount in its accumulated adjustments account. Page C-12 The following are FPI's book balance sheets as of January 1, 2015, and December 31, 2015Step by Step Solution
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