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Hello I am sending the problem again in an excel f...




Hello I am sending the problem again in an excel form Last part of it is below I need to have this completed by tomorow at 5 pm.Thank you so much!! last part of problem Organizational Expenditures: The corporation incurred 6,800 $ of organizational expenditures on January 2, 2006. For book purposes, the corporation expensed the entire expenditure. For tax purposes, the corporation elected under sec. 248 to deduct $ 5,000 in 2006 and amortize the remaining $1,800 amount over 180 months., with a full months amortization taken for January 2006. The corporation reports this amortization in Part VI of form 4562 and includes it in "Other Deductions" on form 1120, line 26. Capital gains and losses: The corporation sold 100 shares of PDQ corp. common stock on march 7, 2009, for 75,000 $. The corp. acquired on December 15, 2008, for $ 45,000. The corporation also sold 75 shares of JSB Corp. common stock on June 17, 2009, for $ 46,000. The corporation acquired this stock on September 18, 2006, for $ 60,000. The corporation has an $ 8,000 capital carryover from 2008. Fixed assets and Depreciation: For book purposes: the corporation uses straight- line depreciation over the useful lives of assets as follows: Store building, 50 years: Equipment, 15 years(old) and ten years(new) and trucks, five years. The corporation takes a half-years depreciation in the year of acquisition and the year of disposition and assumes no salvage value. the book financial statements reflect these calculations. For tax purposes: All assets are MACRS property as follows: store building , 39 yearnonrezidential real property: equipment, seven year property: and trucks five year property, and trucks , five year property. The corporation acquired the store building for 1$milion and placed it in service on january 2, 2006. The corporation acquired two pieces of equipment for 300,000 Equipment 1 and 600,000Equipment2. and placed them in service on january 2,2006. The corporation acquired the trucks for $200,000 and placed them in service on July 18,2007. The corporation did not make the expensing election under sec. 179 on any property acquire before 2009. Accumulated tax depreciation through December 31, 2008, on these properties is as follows: Store buildings $75,890 Equipment 1 168,810 Equipment 2 337,620 Trucks 104,000 On Nov. 16,2009. the corporation sold for $325,000 Equipment 1 that originally cost $300,000 on January 2,2006. the corporation had no sec.1231 losses from prior years. In a separate transaction on November 17,2009, the corporation acquired and placed in service a piece of equipment costing 850,000$These two transactions do not qualify as a like king exchange under reg. sec. 1.1031 (K)-1(a). The new equipment is seven year property. The corp. made the sec179 expensing election with regard to the new equipment and claimed bonus depreciation. Where applicable, use published IRS depreciation tables to compute 2009 depreciation( reproduced in Appendix C of this text). other information The corporation's activities do not qualify for the US production activities deduction. Ignore the AMT and accumulated earnings tax. The corporation received dividends ( see income statement) from taxable, domestic corporations, the stock of which Knoxville Musical Sales, Inc. owns less than 20 %. The corporation paid 85,000$ in cash dividents to its shareholders during the year and charged the payment directly to retained earnings. The state income tax in is the exact amount of such taxes incurred during the year. The corporation is not entitled any credits. REQUIRED: PREPARE THE 2009 CORPORATE TAX RETURN FOR KNOXVILLE MUSICAL SALES,INC. ALONGWITH ANY NECESARY SUPPORTING SCHEDULES. OPTIONAL: prepare schedule M3 and schedule B as well as schedule M-1 even though the IRS does not require both scheduleM1 and schedule M3


Paper#3631 | Written in 18-Jul-2015

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