Tax Project Please help
W C Corp Tax Re...hree M Inc(1) W Helpful Hints ...xAct Software W Acct3334NSyl...pring 2021(1) + X 1 1 3 v OC Q, Xmku Times New Roma - Jpg - AAEEEAAAaBbccI AaB AaBb AaBbc Q # D# 13.CH! BIVA XX2 A-2 AA 2.0 tamen 2 , Anita Mann, Marsha Mellow, and Tequila Mockingbird each own one-third of the common stock of Three M Inc. (TMI). TMI was incorporated on February 1, 2010. It has only one class of stock outstanding and operates as a C corporation since its inception. TMI caters all types of social 28] events throughout east Texas. The following is TMI's book income statement for 2019: TMI Income Statement For Year Ending December 31, 2019 Revenue from sales Sales returns and allowances Cost of goods sold Gross profit from operations Dividend income Interest income Capital gain (loss) Total income $1,800,000 (5,000) (350,000) 1,445,000 25,000 10,000 (15.000) $1,465,000 Expenses: Compensation Bad debt expenses Business meals Maintenance Property taxes State income taxes Payroll taxes Rent 950,000 15,000 3,000 6,000 11,000 45,000 44,000 70,000 : 13 :1111 120% + Type here to search ACCT 3334 year2019 form 11... C Corp lax Return... Get Homework H... ENG 1:58 PM 3/26/2021 E WC Corp Tax Re...hree M Inc(1) M [12 W Helpful Hints ...xAct Software Arcti334NMSyl.pring2021]} + X v - Q Q Times New Roma-19 ATA: : 4 AaBbcc AaB AaBb AaBbc R BIU X X2 A., & : Interest 5.UUU Advertising 52.000 Professional services 16,000 Employee pension plan 32,000 Supplies 5.000 Other expenses 27,000 Federal income tax expense 60.000 Total expenses 1,341,000 Net income $ 124,000 The following are TMI's book balance sheets as of December 31, 2018 and December 31, 2019: TMI *** : 13 :1111 co == S 120% + Type here to search | ACCI 334 o year 2019 form 11. C Corp lax Return... Get Homework H... ENG 1.58 PM 3/26/2021 = WC Corp Tax Re...hree M Inc(1) W Helpful Hints ...xAct Software W Acct3334NSyl...pring 2021(1) + X - v OC Q. , X X Times New Roma/pg AA en EEEA AaBbccI AaB AaBb AaBbc # 13.-CHI BIU-AX X, A-AAE - 1 1 Hoxe 2 3 Balance sneers December 31, 2018 and December 31, 2019 Q 12/31/2018 12/31/2019 28] of a R X Assets: Cash Accounts receivable Allowance for doubtful accounts Inventory U.S. government bonds State and local bonds Investments in stocks Equipment Accumulated depreciation Other assets Total assets $270,000 560,000 (60,000) 140,000 20.000 120,000 400,000 140,000 (140,000) 20,000 $1,470,000 $305,000 580,000 (50,000) 150.000 20.000 120,000 360,000 140,000 (140,000) 21,000 $1,500,000 Liabilities and Shareholders' Equity: Accounts payable 280,000 Other current liabilities 20,000 Other liabilities 40.000 Common stock 400.000 Retained earnings 730,000 Total liabilities and shareholders' equity $1,470,000 238,000 18,000 26,000 400,000 824,000 $1,506,000 Other Information: 1. TMI is located at 3400 Montrose Blvd, Suite 1900, Houston, TX 77006. 2. TMI's employer identification number is 76-1234567. : 23 :19913 BUD Type here to search ACCT 3334 year 2019 forn 11... C Corp lax Return... Get Homework H... 120% + ENG 1:58 PM 3/26/2021 E WC Corp Tax Re...hree M Inc(1) W Helpful Hints ...xAct Software W Acct3334NSyl...pring2021(1) + X v OC Q. , - Xmku Times New Roma - Jpg AAEEKA BIU.AX? X, A2 AA EI 90 AaBbcc AaB AaBb(AaBbc 1 : 2 3 Q , 28] 1. TMI is located at 3400 Montrose Blvd, Suite 1900, Houston, TX 77006. 2. TMI's employer identification number is 76-1234567. 3. TMI's business activity is catering food and services. Its business activity code is 722300. 4. The three shareholders also work as officers for the corporation. Anita Mann is the chief executive officer and president (social security number (SSN) 462-10-2222). Marsha Mellow is the executive vice president and chief operating officer (SSN 464-14-3333). Tequila Mockingbird is the vice president of finance (SSN 469-18-4444); she is the corporate officer who will be signing the return. 5. All officers devote 100% of their time to the business and they are all U.S. citizens. 6. TMI uses the accrual method of accounting and has a calendar year-end. 7. TMI made four equal estimated tax payments of $15,000 each on 4/15/19,6/15/19,9/15/19, and 12/15/19. Its tax liability last year was $70,000. If it has overpaid its federal tax liability, TMI would like to receive a refund but they are not interested in applying for a quick refund. TMI also does not want to e-lile the return. o R 2 8. TMI paid a dividend of $10,000 to each of its three shareholders on November 1. TMI had 2 120% WILET: 3/3 8:1/913 #14 + Type here to search ACCT 3334 year 2019 form 11... 3 Get Homework H... C Corp lax Return... ENG 1:59 PM 3/26/2021 WC Corp Tax Re...hree M Inc(1) O. W Helpful Hints ...xAct Software W Acct3334NSyl...pring 2021(1) e 1 to 2 Host 3 = 24 y OC Q. , Times New Roma- AAEEEAA AaBbcc AaB AaBb AaBbc EA Q BIU.AX? X: A A A E ample carnings and profits (E&P) to absorb the distribution. 9. TMI's inventory-related purchases during 2019 were $360,000. It values its inventory based on cost using the FIFO inventory cost low method. Assume the rules of Section 263A do not apply to TMI. 28] 10. Of the $10,000 interest income, $3,000 was from a Vidor, TX bond that was used to fund public activities (issued in 2013), $1,000 was from a U.S. Treasury bond, and the remaining $6,000 was from IBC Bank money market account. 11. TMI's dividend income came from Muffin Man Inc. (MMI). TMI owned 10,000 shares of the stock in MMI at the start of the year, which was 10% of MMI's outstanding stock. 12. On October 1, TMI sold 1,000 shares of its MMI stock for $25,000. It had originally purchased these shares on April 18, 2016, for $40,000. After the sale, TMI owned 9% of MMI. TMI received a Form 1099-B showing proceeds and stock basis. 13. TMI's compensation is as follows: Anita $150,000; Marsha $140,000; Tequila $130,000; Others $530,000 14. TMI wrote-off $25,000 in accounts receivable as uncollectible during the year. 15. At January 1, 2019, TMI's equipment was fully depreciated for both book and tax purposes. 16. The $5,000 interest expense was from a business loan. 17. Other expenses include $6,000 for premiums on term life insurance policies for which TMI is the beneficiary. The policies cover the lives of Anita, Marsha, and Tequila. 18. TMI is not a qualified personal service corporation or a personal holding company. 19. TMI has filed all required Forms 1099 for the year. @ 39 Required: Complete Three M Inc.'s 2019 Form 1120, including Forms 1125-A, 1125-E, Schedules D, G, and Line Explanations, using the information provided above. Print the federal "official return only, excluding client documents (error report, override and estimate report, tax summaries, filing checklist) but including all required forms, schedules, and line explanations. You will turn in this print-out on the due date of this 1.Las far da data TLS aut allertal. LA D 120% *** : 1/3 : 1913 + Type here to search ACCI 3334 year 2019 form 11... Get Homework H... C Corp lax Return. 3 ENG 1:59 PM 3/26/2021 W C Corp Tax Re...hree M Inc(1) W Helpful Hints ...xAct Software W Acct3334NSyl...pring2021(1) + X v OC Q. , - Xmku Times New Roma - Jpg AAEEKA BIU.A.X? X, A2A A E... AaBbccI AaB AaBb AaBbc Q , 1 1 : 3 Required: 28] . Complete Three M Inc.'s 2019 Form 1120, including Forms 1125-A, 1125-E, Schedules D, G, and Line Explanations, using the information provided above. Print the federal official return only, excluding client documents (error report, override and estimate report tax summaries, iling checklist) but including all required forms, schedules, and line explanations. You will turn in this print-out on the due date of this assignment --- see course syllabus for due date. The print-out should be approximately 14 pages. If any information is missing, make reasonable assumptions to fill in the gaps. @ 39 Check Figures: 1. Page 1, line 11, Total Income - $1,477,000 2. Page 1, line 27, Total Deductions = $1,283,500 3. Page 1, line 30, Taxable Income = $181,000 4. Page 1, line 36, Refunded = $21,990 5. Page 5, Line 15, Total Assets 12/31/19 = $1,506,000 6. Page 5, M-1, Line 6 = $206,500 7. Page 5, M-1, Line 9 = $13,000 8. Page 5, M-2, Line 8 = $824,000 3 WILET: 3/3 8:1/913 #14 co 120% - + Type here to search ACCT 3334 9 year2019 form 11... 3 C Corp lax Return... Get Homework H... ENG 1:59 PM 3/26/2021 W C Corp Tax Re...hree M Inc(1) W Helpful Hints ...xAct Software W Acct3334NSyl...pring 2021(1) + X 1 1 3 v OC Q, Xmku Times New Roma - Jpg - AAEEEAAAaBbccI AaB AaBb AaBbc Q # D# 13.CH! BIVA XX2 A-2 AA 2.0 tamen 2 , Anita Mann, Marsha Mellow, and Tequila Mockingbird each own one-third of the common stock of Three M Inc. (TMI). TMI was incorporated on February 1, 2010. It has only one class of stock outstanding and operates as a C corporation since its inception. TMI caters all types of social 28] events throughout east Texas. The following is TMI's book income statement for 2019: TMI Income Statement For Year Ending December 31, 2019 Revenue from sales Sales returns and allowances Cost of goods sold Gross profit from operations Dividend income Interest income Capital gain (loss) Total income $1,800,000 (5,000) (350,000) 1,445,000 25,000 10,000 (15.000) $1,465,000 Expenses: Compensation Bad debt expenses Business meals Maintenance Property taxes State income taxes Payroll taxes Rent 950,000 15,000 3,000 6,000 11,000 45,000 44,000 70,000 : 13 :1111 120% + Type here to search ACCT 3334 year2019 form 11... C Corp lax Return... Get Homework H... ENG 1:58 PM 3/26/2021 E WC Corp Tax Re...hree M Inc(1) M [12 W Helpful Hints ...xAct Software Arcti334NMSyl.pring2021]} + X v - Q Q Times New Roma-19 ATA: : 4 AaBbcc AaB AaBb AaBbc R BIU X X2 A., & : Interest 5.UUU Advertising 52.000 Professional services 16,000 Employee pension plan 32,000 Supplies 5.000 Other expenses 27,000 Federal income tax expense 60.000 Total expenses 1,341,000 Net income $ 124,000 The following are TMI's book balance sheets as of December 31, 2018 and December 31, 2019: TMI *** : 13 :1111 co == S 120% + Type here to search | ACCI 334 o year 2019 form 11. C Corp lax Return... Get Homework H... ENG 1.58 PM 3/26/2021 = WC Corp Tax Re...hree M Inc(1) W Helpful Hints ...xAct Software W Acct3334NSyl...pring 2021(1) + X - v OC Q. , X X Times New Roma/pg AA en EEEA AaBbccI AaB AaBb AaBbc # 13.-CHI BIU-AX X, A-AAE - 1 1 Hoxe 2 3 Balance sneers December 31, 2018 and December 31, 2019 Q 12/31/2018 12/31/2019 28] of a R X Assets: Cash Accounts receivable Allowance for doubtful accounts Inventory U.S. government bonds State and local bonds Investments in stocks Equipment Accumulated depreciation Other assets Total assets $270,000 560,000 (60,000) 140,000 20.000 120,000 400,000 140,000 (140,000) 20,000 $1,470,000 $305,000 580,000 (50,000) 150.000 20.000 120,000 360,000 140,000 (140,000) 21,000 $1,500,000 Liabilities and Shareholders' Equity: Accounts payable 280,000 Other current liabilities 20,000 Other liabilities 40.000 Common stock 400.000 Retained earnings 730,000 Total liabilities and shareholders' equity $1,470,000 238,000 18,000 26,000 400,000 824,000 $1,506,000 Other Information: 1. TMI is located at 3400 Montrose Blvd, Suite 1900, Houston, TX 77006. 2. TMI's employer identification number is 76-1234567. : 23 :19913 BUD Type here to search ACCT 3334 year 2019 forn 11... C Corp lax Return... Get Homework H... 120% + ENG 1:58 PM 3/26/2021 E WC Corp Tax Re...hree M Inc(1) W Helpful Hints ...xAct Software W Acct3334NSyl...pring2021(1) + X v OC Q. , - Xmku Times New Roma - Jpg AAEEKA BIU.AX? X, A2 AA EI 90 AaBbcc AaB AaBb(AaBbc 1 : 2 3 Q , 28] 1. TMI is located at 3400 Montrose Blvd, Suite 1900, Houston, TX 77006. 2. TMI's employer identification number is 76-1234567. 3. TMI's business activity is catering food and services. Its business activity code is 722300. 4. The three shareholders also work as officers for the corporation. Anita Mann is the chief executive officer and president (social security number (SSN) 462-10-2222). Marsha Mellow is the executive vice president and chief operating officer (SSN 464-14-3333). Tequila Mockingbird is the vice president of finance (SSN 469-18-4444); she is the corporate officer who will be signing the return. 5. All officers devote 100% of their time to the business and they are all U.S. citizens. 6. TMI uses the accrual method of accounting and has a calendar year-end. 7. TMI made four equal estimated tax payments of $15,000 each on 4/15/19,6/15/19,9/15/19, and 12/15/19. Its tax liability last year was $70,000. If it has overpaid its federal tax liability, TMI would like to receive a refund but they are not interested in applying for a quick refund. TMI also does not want to e-lile the return. o R 2 8. TMI paid a dividend of $10,000 to each of its three shareholders on November 1. TMI had 2 120% WILET: 3/3 8:1/913 #14 + Type here to search ACCT 3334 year 2019 form 11... 3 Get Homework H... C Corp lax Return... ENG 1:59 PM 3/26/2021 WC Corp Tax Re...hree M Inc(1) O. W Helpful Hints ...xAct Software W Acct3334NSyl...pring 2021(1) e 1 to 2 Host 3 = 24 y OC Q. , Times New Roma- AAEEEAA AaBbcc AaB AaBb AaBbc EA Q BIU.AX? X: A A A E ample carnings and profits (E&P) to absorb the distribution. 9. TMI's inventory-related purchases during 2019 were $360,000. It values its inventory based on cost using the FIFO inventory cost low method. Assume the rules of Section 263A do not apply to TMI. 28] 10. Of the $10,000 interest income, $3,000 was from a Vidor, TX bond that was used to fund public activities (issued in 2013), $1,000 was from a U.S. Treasury bond, and the remaining $6,000 was from IBC Bank money market account. 11. TMI's dividend income came from Muffin Man Inc. (MMI). TMI owned 10,000 shares of the stock in MMI at the start of the year, which was 10% of MMI's outstanding stock. 12. On October 1, TMI sold 1,000 shares of its MMI stock for $25,000. It had originally purchased these shares on April 18, 2016, for $40,000. After the sale, TMI owned 9% of MMI. TMI received a Form 1099-B showing proceeds and stock basis. 13. TMI's compensation is as follows: Anita $150,000; Marsha $140,000; Tequila $130,000; Others $530,000 14. TMI wrote-off $25,000 in accounts receivable as uncollectible during the year. 15. At January 1, 2019, TMI's equipment was fully depreciated for both book and tax purposes. 16. The $5,000 interest expense was from a business loan. 17. Other expenses include $6,000 for premiums on term life insurance policies for which TMI is the beneficiary. The policies cover the lives of Anita, Marsha, and Tequila. 18. TMI is not a qualified personal service corporation or a personal holding company. 19. TMI has filed all required Forms 1099 for the year. @ 39 Required: Complete Three M Inc.'s 2019 Form 1120, including Forms 1125-A, 1125-E, Schedules D, G, and Line Explanations, using the information provided above. Print the federal "official return only, excluding client documents (error report, override and estimate report, tax summaries, filing checklist) but including all required forms, schedules, and line explanations. You will turn in this print-out on the due date of this 1.Las far da data TLS aut allertal. LA D 120% *** : 1/3 : 1913 + Type here to search ACCI 3334 year 2019 form 11... Get Homework H... C Corp lax Return. 3 ENG 1:59 PM 3/26/2021 W C Corp Tax Re...hree M Inc(1) W Helpful Hints ...xAct Software W Acct3334NSyl...pring2021(1) + X v OC Q. , - Xmku Times New Roma - Jpg AAEEKA BIU.A.X? X, A2A A E... AaBbccI AaB AaBb AaBbc Q , 1 1 : 3 Required: 28] . Complete Three M Inc.'s 2019 Form 1120, including Forms 1125-A, 1125-E, Schedules D, G, and Line Explanations, using the information provided above. Print the federal official return only, excluding client documents (error report, override and estimate report tax summaries, iling checklist) but including all required forms, schedules, and line explanations. You will turn in this print-out on the due date of this assignment --- see course syllabus for due date. The print-out should be approximately 14 pages. If any information is missing, make reasonable assumptions to fill in the gaps. @ 39 Check Figures: 1. Page 1, line 11, Total Income - $1,477,000 2. Page 1, line 27, Total Deductions = $1,283,500 3. Page 1, line 30, Taxable Income = $181,000 4. Page 1, line 36, Refunded = $21,990 5. Page 5, Line 15, Total Assets 12/31/19 = $1,506,000 6. Page 5, M-1, Line 6 = $206,500 7. Page 5, M-1, Line 9 = $13,000 8. Page 5, M-2, Line 8 = $824,000 3 WILET: 3/3 8:1/913 #14 co 120% - + Type here to search ACCT 3334 9 year2019 form 11... 3 C Corp lax Return... Get Homework H... ENG 1:59 PM 3/26/2021
