Corporate Tax Return Form 1120 Problem
On February 12, 2003, Nancy Trout and Delores Lake formed Kingfisher corporation to sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follows:
- Kingfisher's business address is 2317 Lakeside Drive, Flowery Branch, GA 30542; its telephone number is 678-555-1212 and its email address is [email protected]
- The employer identification umber is 11-1111111, and the principal business actifity code is 451110.
- Nancy owns 50% of the common stock and is president of the company, and Delores owns 50% of the common stock and is vice president of the company. No other class of stock is authorized.
- Both Nancy and Delores are full-time employees of Kingfisher. Nancy's Social Security number is 123-45-6789, and Delores's Social Security number is 987-65-4321.
- Kingfisher is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Kingfisher usses the straight-line method of depreciation for book purposes and acceleerated depreciation (MACRS) for tax purposes.
- During 2015, the corporation distributed cash dividends of $80,000.
- During 2015, Kingfisher made estimated tax payments of $43,750 each quarter to the IRS.
- Kingfisher's financial statements for 2015 are shown on the following tabs.
Required: Prepare a Form 1120 for Kingfisher for tax year 2015. You can download the forms from IRS.gov.
Analysis of Tas Return: As you review the tax return and information, what tax planning recommendations do you have for this business? Are there any tax planning tips you have for these owners to reduce their income tax in future years?
Attachment:- Assignment Files.rar