2024 – Tax Return The Final Project listed below is found on page 11 50 of Prentice Hall s

The Final Project listed below is found on page 11-50 of Prentice Hall’s Federal Taxation, 2015.

Tax Form/Return Preparation Problem C:11-64

Prepare and submit an S Corporation Tax Return for 2013 with the required schedules. (In order to complete this exercise, you must first download the following tax form.)

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Here is problem c 11-64:

 

C:11-64

Refer to the facts in Tax Form/Return Preparation Problem C:9-58. Now assume the company is an S corporation rather than a partnership. Additional facts are as follows:

Here is 9-58 incase you need it:

 

 

 

C:9-58

Healthwise Medical Supplies Company is located at 2400 Second Street, City, ST 12345. The company is a general partnership that uses the calendar year and accrual basis for both book and tax purposes. It engages in the development and sale of specialized surgical tools to hospitals. The employer identification number (EIN) is XX-2015013. The company formed and began business on January 1, 2012. It has no foreign partners or other foreign dealings. The company is neither a tax shelter nor a publicly traded partnership. The company has made no distributions other than cash, and no changes in ownership have occurred during the current year. Dr. Bailey is the Tax Matters Partner. The partnership makes no special elections. Table C:9-3 contains book balance sheet information at the beginning and end of the current year, and Table C:9-4 presents a book income statement for the current year. Other information follows:

Information on Partnership Formation: Two individuals formed the partnership on January 1, 2012: Dr. Leisa H. Bailey (1200 First Pike, City, ST 12345) and Dr. Thomas J. Firth (3600 Third Blvd., City, ST 54321). For a 30% interest, Dr. Bailey contributed $1,080,000 cash. She is an active general partner who manages the company. For a 70% interest, Dr. Firth contributed $2,088,000 cash and 1,000 shares of Fastgrowth, Inc. stock having, at the time of contribution, a $432,000 fair market value (FMV) and a $86,400 adjusted basis. Dr. Firth is an active general partner who designs and develops new products. For book purposes, the company recorded the contribution of stock at fair market value.

Inventory and Cost of Goods Sold (Form 1125-A):

The company uses the periodic inventory method and prices its inventory using the lower of FIFO cost or market. Only beginning inventory, ending inventory, and purchases should be reflected in Schedule A. No other costs or expenses are allocated to cost of goods sold. Note: the company is exempt from the uniform capitalization (UNICAP) rules because average gross income for the previous year was less than $10 million [Sec. 263A(b)(2)(B)].