Background Jane Collier, James Taye, and Steve Allwine each own


Question Description:

35

Please see attached. I need full tax return plus schedules. I will not pay if the schedules according to the tax return and assignment are not attached. I have seen completed on this site without schedules attached already. Do not copy and paste. Tasty Treat Tax Return.docx 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: o Jane is the chief executive officer and president (Social Security number 242-625786). o James is the executive vice president and chief operating officer (Social Security number 563-58-8923). o 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 Sales returns and allowances Cost of goods sold Gross profit from operations 1,500,000 (25,000) (325,000) 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 Cash Accounts Receivable Allowance for doubtful accounts Inventory January 2013 December 2013 175,000 190,000 63,000 54,000 (8,000) (7,000) 225,000 US government bonds 30,000 275,000 25,000 State and local bonds 50,000 50,000 Investments in stock 325,000 335,000 475,000 485,000 Fixed assets Accumulated depreciation (198,000) Other assets Total assets (215,000) 11,000 12,000 1,148,000 1,204,000 225,000 200,000 Liabilities and Stockholder’ s Equity Accounts payable Other current liabilities 135,000 Other liabilities 75,000 68,263 250,000 250,000 463,000 Capital stock Retained earnings 55,000 630,737 Total liabilities and stockholder’s 1,148,000 equity 1,204,000 Additional Information Inventory-related purchases during 2013 were $175,000. It values its inventory based on cost using the FIFO inventory cost flow method. Assume the rules of ยง263A do not apply. Of the $12,000 interest income, $1,500 was from a City of Dees bond that was used to fund public activities (issued in 2011), $1,750 was from an Border city bond used to fund private activities (issued in 2004), $2,500 was from a U.S. Treasury bond, and the remaining $6,250 was from a money market account. Dividend income came from ABC Inc. Owned 10,000 shares of the stock in ABC Inc. at the beginning of the year. This represented 10 percent of outstanding stock. On September 1, 2013, the corporation sold 1,000 shares of its ABC stock for $15,000. It had originally purchased these shares on

Answer

35