Scenario

Complete the corporate tax return, along with the necessary schedules, by the upcoming tax deadline. SageGreen has provided its financial statements for the current year. SageGreen's controller has provided all the documentation and support needed to compile the necessary financial data and tax information.

Part One: Tax Return

1. CompletePart Oneof Form 1120 with no errors. Include the following sections of the form:
   1. Income
   2. Deductions
   3. Tax, Refundable Credits, and Payments
2. PreparePart Twoof Form 1120 with no errors. Include the following sections of the form:
   1. Schedule C
   2. Schedule J
   3. Schedule K
3. PreparePart Threeof Form 1120 with no errors. Include the following sections of the form:
   1. Schedule L
   2. Schedules M-1 and M-2

Reflection of the incorporated feedback from the Project One milestone and additional tax research.

1. Explain how the work of preparing Form 1120 for Part One of the project accounted forfiling accuracyand completeness. Consider the following:
   1. Examples of how it was verified that your work is free from error
   2. Reasons for determining the relevance of certain tax laws, regulations, and codes
2. Explainpotential variationsin preparation of Form 1120. Consider the following:
   1. Reconciliation of income per books in Schedule M-1
   2. Temporary differences
   3. Book differences versus tax differences