S Corporation Tax Return Problem

Required:

Using the infoemation provided below, complete First Place Inc.$\text{'}$s $($FPI$)2022$ Form

$1120$S$.$ Also complete Kane Kleiber's Schedule K$-1$ and the forms $1125-$A and $1125-$E$.$

Form $4562$ for depreciation is not required. Include the amount of tax depreciation given

in the problem on the appropriate line on the finst page of Form $11205.$

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

The forms, schedules, and instractions can be found at the IRS website $($sww irs, gov$).$

The instructions can be belpful in completing the forms.

Facts:

First Place Inc. $($FPI$)$ was formed as a corporation on January $5,2018,$ by its two owners Kale

Kleiber and James Chandler. FPI immediately elected to be taxed as an S corporation for federal

income tux proposes. FPI sells mountain elimbing gear to retailers throughout the Rocky

Mountain region. Kate ows $70$ percent of the FPI coemon stock $($the only class of stock:

cutstanding$)$ and James ows $30$ peroent, and both devote $1005$ of their working time to FPI.

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

FPT$\text{'}$s Employer Ldentification Number is $87-5467544.$

FPI's business activity is wholecale sales. Its business activity code is $423910$

Both shareholders work as employees of the corporation.

Kate is the president of FPI $($Social Security number $312-89-4567).$ Kate's address is

$1842$ East $8400$ South, Sandy, Utah $84094.$

James is the vice president of FM $($Social Security number $321-98-7645).$ James',

address is $2002$ East $8145$ South, Sandy, Utah $84094.$

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

y$.$ Frin $\text{'}$s$.$

$-$ Kate, $5120,000$

$-$ James, $580,00$

$5.FFr$ wote $of$ $$6,000in$ acosunts reseivalle $as$ mocollectitle during the year.

$6.FY\text{'}s$ total MACRS depreciation for $2022is$ $$17,000.$

$7.$ FFI male $a$ $$10,000$ cash donativo $to$ the American Red Crosas $in2002.$

$9.$ FFI distributed $$60,000to$ its shuretholders.