Assignment:

do a completed 2019 form 1120-S for Engineers Plus, Inc by pencil or pen using the forms required and available at www.irs.gov.You may instead use the fillable PDF forms from the IRS webpage if you prefer.No returns prepared in tax preparation software will be accepted.Please work independently.You will need to prepare the first of the return, the required Schedule K-1s and any other schedules required by the instructions (4562, 4797, additional schedules like pg. 1 other expenses, etc.).You don't need a COGS schedule form 1125-A.Please feel free to contact Mr. Knape with questions or for help preparing the return, but please attempt to finish it beforehand to the best of your ability.

Info: Engineers Plus, Inc. is a 2 shareholder S-Corp that provides civil engineering and consulting services.Their 2019 Income Statement and 2018 and 2019 Balance Sheets are posted in Canvas.Their shareholders are:

60%:

Steven Pinniac

2397 Langwood Lane

Burlington, VT 23147

SS# 842-98-0706

Steven gets the salary because he works everyday for the corporation as one of the engineers.

40%

John Roe

48 Capital Lane

Burlington, VT 23145

SS# 993-47-6554

Their office is at 16493 Engineer Way in Burlington, VT 23146 and this is their address for the tax return.Their tax ID# is 47-1764747.You will need to look up their business activity code.

They split the shareholder withdrawals and income based on their ownership percentages.The shareholder loan was initially given to Steven to help buy a yacht in 2018.He borrowed an additional $200,000 in 2019 to pay for tuition and expenses for his daughter at Yale and a new Lexus for his Son.

The balance sheet and income statement are accrual, GAAP based statements.They use straight line depreciation for books and MACRS for tax.They would like to Sec. 179 the furniture and equipment purchased in 2019. They had no disposals of any equipment in 2019. MACRS depreciation should be $9,800 excluding the Sec. 179 for the equipment purchased.The Sec. 1231 Gain on Land was from a flow-through entity the S-Corp owns in their Edward jones investment account, not from an asset disposal.Just show the gain as "From K-1" and don't include disposal or acquisition dates on Form 4797.

They had actual bad debt write-offs in 2019 of $10,600.

They have no foreign accounts and both shareholders are legal citizens.

They elected S-Status on January 31, 2001

The corporation doesn't own stock in other companies or interests in any other entities other than fractional percentages in their investment account

They have never been a C Corp and have 1 class of voting stock

Engineers Plus, Inc. Balance Sheet As of December 31, 2019 Assets: Dec. 31 19 Dec. 31 18 Current Assets Cash 748,900 603,754 Accounts Receivable 339,000 276,187 Allowance for Uncoll Accts (60,350) (48,400) Total Current Assets 1,027,550 831,541 Long-Term Asset Furniture and Equipment 462,999 297,999 Accumulated Depreciation (45,466) (31,166) Loan Costs 14,000 14,000 Accumulated Amortization 14,000) 14,000) Investments - CDs 429,000 306,983 Investments - Edward Jones 590,300 16,900 Shareholder Loans 630,300 430,300 Long-Term Asstes 2,067,133 1,621,016 Total Assets 3,094,683 2,452,557 Liabilities Current Liabilities Accounts Payable 343,407 56,571 Line of Credit 29,000 62,700 Total Current Liabilities 372,407 119,271 Long-Term Liabilities Loan Payable - Bank of Nevada 202,000 222,000 Total Liabilities 574,407 341,271 Shareholders' Equity Retained Earnings 3,840,276 3,191,286 Shareholder Distributions (1,320,000) (1,080,000) Total Equity 2,520,276 2,111,286 Total Liabilities and Equity 3,094,683 2,452,557Engineers Plus, Inc, Income Statement For the Year Ended December 31, 2019 Income: Sales 5,487,700 006$ - Staff Hours (3,238,700) Gross Profit 2,249,000 Other Income: Interest Income 7,250 Municipal Bond Interest 4,950 Life Insurance Proceeds 210,000 Sec, 1231 Gain ~ Land 26,400 Total Income 2,497,600 Expenses Advertising and Promotion 37,500 Automobile Expense 24,400 Bad Debt Expense 22,550 Computer and Internet Expense 30,200 Depreciation Expense 14,300 Insurance Expense 46,800 Meals Expense 12,100 Office Supplies 71,000 Payroll Taxes 232,060 Professional Fees 7,200 Rent Expense 108,000 Repairs and Maintenance 22,800 Shareholder Salary 79,000 Telephone Expense 32,900 Travel Expense 27,800 Total Expenses 768,610 Net Income 1,728,990