Reference no: EM131158619

Complete Tax form.
Instruction are as follows:

Tax Return Information

Overview
The case study consists of four parts, each with its own set of requirements. Each part builds on the information developed in the preceding parts:

• Part I presents financial information for a C corporation that must be used to prepare a basic Form 1120.

• Part 2 presents financial information for a partnership that is substantially identical to the information used by the C corporation. That information is used to prepare a basic Form 1065 and the related Schedule K-1 s.

• Part 3 presents financial information for an S corporation that is substantially identical to the information used by the partnership and the C corporation. That information is used to prepare a basic Form 1120S and the related Schedule K-I s.

• Part 4 presents financial information for the individual taxpayer (Ms. Maine), including the information related to the C and S corporations and the partnership. That information is used to prepare a basic Form 1040.

The objective of this case study's approach is to have you focus on how the tax treatment of essentially the same income/expense item varies by the type of entity, not to have you become a tax return preparation expert. Therefore, revenue/deduction items that do not contribute to this learning objective have been deliberately omitted. Also, alternative minimum tax factors have not been considered.

Background
Cindy Maine (S.S.N. 001-02-0012) is a successful young executive. She is single with no dependents and has ownership interests in three businesses:

• Elixir Seecorp, Inc. (E.I.N. 75-3284680), a cash basis, calendar year-end C corporation. It was incorporated January 1, 1988, in the State of New York and sells miracle cures that are non¬traditional treatments for difficult-to-cure ailments. Ms. Maine is a 90% shareholder. The other 10% is owned by L. B. Anderson (S.S.N. 011-22-3012).

• Research Associates (E.I.N.- 75-3348679), a cash basis, calendar year-end general partnership. Ms. Maine has a 90 percent interest in the entity's equity, profits, and losses; the remaining 10 percent is owned by Dr. Kanga Rue (S.S.N. 210-02-0100). This New York partnership was formed January 1, 1989, for the purpose of testing the efficacy of miracle medical cures.

• Esscorp Embalming, Inc. (E.I.N.- 75-3284791), a cash basis, calendar year-end S corporation. Ms. Maine has a 90 percent ownership interest; the remaining 10 percent is owned by Dr. I. R. Badr (S.S.N. 120-02-0200). This corporation has had a valid S corporation election in effect since it was formed June 1, 1988. It "cleans up" messes made by the testing and use of miracle
MPS.

As a matter of convenience, Ms. Maine and the businesses all use the same mailing address, 512 S. Crouse, Podunk Center, Iowa, 50169.

Taxpayer Information

Part 1 -- Form 1120
During the year ended 12/31/2015, Elixir Seecorp:

• Paid dividends of $198,000 to Ms. Maine, and $22,000 to L.B. Anderson.
• Paid officer's compensation of $75,000, of which $50,000 was paid to Ms. Maine (who was actively involved in the business).
• Made four equal and timely estimated tax payments ($8,750 each to the federal government; $3,000 each to the state government).
• Received exempt municipal interest income of $5,000.
• Received dividend income of $30,000 from Miracle Cure, Inc., (in which Elixir has a 30% ownership interest) and $20,000 from corporations in which Elixir has a 20% ownership interest. All dividends are qualified dividends.
• Paid no salariesAvages attributable to inventories.

The corporation's balance sheets and income statement are presented in Exhibits I and 2, respectively.

Exhibit 1

Elixir Seecorp, Inc. Balance Sheet

Years ended December 31, 2014 and 2015

	Balances as of
ASSETS	12/31/2014	12/31/2015
Cash	$25,000	$36,000
Inventory	$150,000	$100,000
Depreciable assets (net)	$300,000	$200.000
TOTAL ASSETS	$475,000	5336.000
LIABILITIES &
RETAINED EARNINGS
Accounts payable (inventory)	$10,000	$12,000
Notes payable	$25,000	$0
Common stock	$25,000	$25,000
Unappropriated retained earnings	$415.000	5299,000
TOTAL LIABILITIES &RETAINED EARNINGS
	$475,000	5336.000

 

Exhibit 2
Elixir Seecorp, Inc.
Income Statement
Year ended December 31, 2015

Gross receipts	$1,000,000
Cost-of-Goods Sold	(250,000)
Dividend Income	50,000
Interest Income	11,000
Capital losses	(35.000)
		$776,000
Salaries and wages	($345,000)
Compensation of officers	(75,000)
Rents	(55,000)
Property taxes	(10,000)
Utilities	(20,000)
Depreciation	(100,000)
Charitable contributions	(20,000)
Federal income tax	(35,000)
State income tax	(12.000)
		(S672.000)
		C104.000

Propert Transactions

Item	Purchase** Price - Date	Sale Price - Date
100 shares of CYA stock	$3,000 -1/1/2000	S7,000 - 1, 15 2015
2,000 shares of ABZ stock	$100,000 - 6/30/2000	S54,000 - 6/29/2015
City of LA Bonds	$25,000 - 10/15/2014	S22,000 - 2/14/2015
State of MI Bonds	$125,000 - 5/30/2014	$135,000 - 10/31/2015

The taxpayer received 1099s for these transactions, but the basis was not reported to the IRS.

Section 199 Information

Domestic Production Gross Receipts	$317,463
Allocable Cost of Goods Sold	$63,493
Deductions Allocable to DPGR	$142,858
W-2 Wages Related to QPAI	$40,000

Required

Use the information above to complete the assigned forms and schedules of the corporation's Form 1120 and Schedule D (you will not be filing a complete return).

Attached all the Forms thats needed.

Forms to Complete (2015)
•Form 1120 (not Schedule K)
•Schedule D and Forms 8949
•Form 8903
•Form 1125-A
•Form 1125-E

Check Figure: Form 1120, page 1, line 28 = $169,100
Note: On the Form 8949 that supports Schedule D, you will need to use the box B option

Attachment:- all Forms.rar

Attachment:- Excel .rar