Use the following formation to complete a federal tax return for Bob Jones business an used car business, s corperation .If information is missing use reasonable assumption to fill in the gaps .

Plase use the forms: 1120s, 2553, 1125, 1040, and schedules K-1, Schedule B, Schedule D, and schedule e. The forms, schedule and instructions can be found at the IRS Web site (www.irs.gov). Theinstructions can be helpful in completing the forms.

Bob Jones. Bob, age 60 and single, has recently retired from IBM. He has $690,000 available in his 401(k) fund and he is thinking of using that money to open a used car business that will be located at 210 Ocean View Drive in Pensacola , Florida. Bob has estimated that the business might make $300,000 in taxable income. Bobs personal wealth including investments in land, stocks, and bonds is about $14,000,000. He reported an interest income of $20,000 and dividend income of

$6,000 last year. The $14,000,000 includes land worth $9,000,000 that Bob bought in 1966 for $450,000 That he plans to sell to fund the business.

He is also considering transferring a possible 40% interest in his new businessto his daughter Mandy, age 23 and single

.