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Portfolio Project: Trust and Estates - Part 1 (175 Points);For this assignment, you will complete two tax returns (Corporation Return and Partnership Return), for 175 points each. You may use the tax software found at;Please note there is a limit of 5 returns per session.;PART I ? Tax Return #1, Corporate Return;Background;Jane Collier, James Taye, and Steve Allwine each own one-third of the common stock of Tasty Treats and Beverages. The corporation was incorporated on April 3, 2004. It has only one class of stock outstanding and operates as a C corporation for tax purposes. Tasty Treats and Beverages caters kid-friendly social events.;Located at 1215 Blue Horizon, Dallas, TX 12234.;Employer Identification Number is 12-34567890.;Business activity is catering food. Its business activity code is 722300.;The shareholders also work as officers for the corporation as follows;Jane is the chief executive officer and president (Social Security number 242-62-5786).;James is the executive vice president and chief operating officer (Social Security number 563-58-8923).;Steve is the vice president of finance (Social Security number 575-58-1572).;All officers devote 100% of their time to the business;All officers are U.S. citizens.;Use the accrual method of accounting and have a calendar year-end.;Four equal estimated tax payments of $28,000 each quarter. Its tax liability last year was $85,000.;If it has overpaid its federal tax liability, the corporation would like to receive a refund.;Dividend paid of $20,000 to its shareholders on October 1. The Corporation had ample earnings and profits (E&P) to absorb the distribution.;Financial Statements;Tasty Treats and Beverages, Inc.;Income Statement;For year ended December 31, 2013;Revenue from sales;1,500,000;Sales returns and allowances;(25,000);Cost of goods sold;(325,000);Gross profit from operations;1,150,000;Other Income;Capital loss;(7,500);Dividend income;15,000;Interest income;12,000;Gross income;1,169,500;Expenses;Compensation;(750,000);Depreciation;(12,000);Bad debt expense;(7,800);Meals and entertainment;(3,000);Maintenance;(2,500);Property taxes;(10,000);State income taxes;(30,000);Other taxes;(11,000);Rent;(28,000);Interest;(7,300);Advertising;(6,200);Professional services;(5,000);Employee benefits;(8,000);Supplies;(2,500);Other expenses;(1,750);Total expenses;(885,050);Income before taxes;284,450;Federal income tax expense;96,713;Net income after taxes;187,737;Tasty Treats and Beverages, Inc.;Balance Sheet;December 31, 2013;ASSETS;January 2013;December 2013;Cash;175,000;190,000;Accounts Receivable;63,000;54,000;Allowance for doubtful accounts;(8,000);(7,000);Inventory;225,000;275,000;US government bonds;30,000;25,000;State and local bonds;50,000;50,000;Investments in stock;325,000;335,000;Fixed assets;475,000;485,000;Accumulated depreciation;(198,000);(215,000);Other assets;11,000;12,000;Total assets;1,148,000;1,204,000;Liabilities and Stockholder's Equity;Accounts payable;225,000;200,000;Other current liabilities;135,000


Paper#77924 | Written in 18-Jul-2015

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