Prepare Schedules M-1 and K-1 (for Blake Turin only) for tax year 2019. See attached set of facts and blank tax forms. Please download the tax forms, prepare them manually, then scan and submit the tax forms (and calculations as in the YL, Inc. example) in PDF format. Do not use tax software. Be sure to include all names, addresses, check all the appropriate boxes, etc. If needed, refer to the tax form instructions available at the IRS website in the Tax Research Materials folder.

Hints: There are five book-tax differences. Taxable income (Schedule M-1, line 8) is $134,950. Ordinary income is $142,150. Please show calculations when needed.

Information:

Tax Form:

  

Transcribed Image Text:

SCHEDULE M-1 AND SCHEDULE K-1 TAX YEAR 2019 INCOME: EXPENSES: GROSS RECEIPTS COST OF GOODS SOLD QUALIFIED DIVIDEND INCOME TAX-EXEMPT INTEREST INCOME TOTAL INCOME BOOK DEPRECIATION SALARIES AND WAGES EXPENSE POLITICAL CONTRIBUTIONS EXPENSE RENT EXPENSE STATE AND LOCAL TAXES CHARITABLE CONTRIBUTIONS INTEREST EXPENSE BUSINESS INSURANCE EXPENSE MEALS EXPENSE SUPPLIES EXPENSE TELEPHONE EXPENSE UTILITIES EXPENSE OFFICE EXPENSE TOTAL EXPENSES NET INCOME PER BOOKS OTHER INFORMATION: NEWPORT NEWS, INC. P.O. BOX 120 RUMFORD, RI 02916 EIN 23-6392101 BLAKE TURIN 60% OWNER 1700 ADDISON DRIVE PROVIDENCE, RI 02903 SSN 088-76-6301 TAX DEPRECIATION TOTAL SECTION 179 INCLUDED IN TAX DEPRECIATION TOTAL CASH DISTRIBUTIONS (ALLOCATED ACCORDING TO OWNERSHIP %). ADVANCE REVENUE RECEIVED IN 2018, TAXABLE IN 2018. EARNED AND INCLUDED IN BOOK INCOME IN 2019. 855,000 (551,000) 7,500 4,000 315,500 12,800 100,000 2,000 12,000 3,700 6,500 6,700 4,600 4,500 3,100 4,100 3,400 6,200 169,600 145,900 10,300 8,200 60,000 13,700 IGNORE THE QUALIFIED BUSINESS INCOME INFORMATION THAT WOULD BE REPORTED IN BOX 17, CODE V. SCHEDULE M-1 AND SCHEDULE K-1 TAX YEAR 2019 INCOME: EXPENSES: GROSS RECEIPTS COST OF GOODS SOLD QUALIFIED DIVIDEND INCOME TAX-EXEMPT INTEREST INCOME TOTAL INCOME BOOK DEPRECIATION SALARIES AND WAGES EXPENSE POLITICAL CONTRIBUTIONS EXPENSE RENT EXPENSE STATE AND LOCAL TAXES CHARITABLE CONTRIBUTIONS INTEREST EXPENSE BUSINESS INSURANCE EXPENSE MEALS EXPENSE SUPPLIES EXPENSE TELEPHONE EXPENSE UTILITIES EXPENSE OFFICE EXPENSE TOTAL EXPENSES NET INCOME PER BOOKS OTHER INFORMATION: NEWPORT NEWS, INC. P.O. BOX 120 RUMFORD, RI 02916 EIN 23-6392101 BLAKE TURIN 60% OWNER 1700 ADDISON DRIVE PROVIDENCE, RI 02903 SSN 088-76-6301 TAX DEPRECIATION TOTAL SECTION 179 INCLUDED IN TAX DEPRECIATION TOTAL CASH DISTRIBUTIONS (ALLOCATED ACCORDING TO OWNERSHIP %). ADVANCE REVENUE RECEIVED IN 2018, TAXABLE IN 2018. EARNED AND INCLUDED IN BOOK INCOME IN 2019. 855,000 (551,000) 7,500 4,000 315,500 12,800 100,000 2,000 12,000 3,700 6,500 6,700 4,600 4,500 3,100 4,100 3,400 6,200 169,600 145,900 10,300 8,200 60,000 13,700 IGNORE THE QUALIFIED BUSINESS INCOME INFORMATION THAT WOULD BE REPORTED IN BOX 17, CODE V.

Answer rating: 100% (QA)

Answer To prepare Schedules M1 and K1 for Blake Turin for tax year 2019 well need to reconcile the i... View the full answer