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Ryan and Adam are 70% and 30% owners, respectively, of Enchanted Gifts, Inc. Enchanted Gifts is an S Corporation. The company's 2021 income statement is
Ryan and Adam are 70% and 30% owners, respectively, of Enchanted Gifts, Inc. Enchanted Gifts is an S Corporation. The company's 2021 income statement is provided below. The balance sheet has been entered for you in ProConnect. Interest income $7,000 Qualified dividends 20,000 Gross sales receipts 741,000 Salaries and wages 442,100 Officers' salaries (pro-rata) 25,000 Repairs 80,000 Depreciation expense 17,000 $179 depreciation 25,000 Rent expense 40,000 Taxes 8,200 Charitable contributions (cash) 20,000 Advertising expense 9,500 Payroll penalties 3,000 Miscellaneous deductions 3,200 Cash distributions to shareholders 75,200 Short-term capital gain 6,200 Long-term capital (loss) 12,000 Requirements: 1) In Excel make a schedule that calculates OBI and separately stated items. Format your workpaper so it could be shared with your clients if necessary. 2) In Excel make a basis schedule that could be easily rolled-forward year after year. 3) Prepare the return in ProConnect. 4) Submit your Excel file and screen shots of pg. 1, Sch L, Sch K, and Sch M-1. Using the Snipping Tool, include YOUR tax return name in the upper left-hand corner
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