Sub$-$S Tax Return Problem $($Form $1120$S$)$For this assignment, you will be preparing a $20241120$S$.$ Make sure you are working with an $1120$S rather than an $1120.$If you have a line where you are placing multiple times such as other income or other deductions, submit a schedule listing the items and amounts so that I know what you are including on that line.On September $1,2015,$ Amelia Hernandez and Adam Jones founded A & A Imprints, a business that makes specialty t$-$shirts.A & A Imprintss address is: $1234$ Hoosier Parkway, South Bend, IN $46616$Their employer ID number is: $11-1111111.$Amelia and Adam each own $1000$ shares of stock$--50\%$ of the stock. Amelia is president; Adam is vice$-$president.Both Amelia and Adam are full$-$time employees of the company. Amelias social security number is $123-45-6789.$ Adams is $098-76-5432.$The company uses the accrual method and has a $12/31$ year end. Inventory is determined using FIFO and the lower of cost or market method. The company uses straight$-$line deprecation for financial accounting purposes and MACRS for tax purposes. Depreciation under MACRS is $$350,000.$ Rather than filling out a form $4562,$ simply enter the amount of depreciation on line $14$ of the $1120-$S$.$The interest income includes $$30,000$ of tax$-$exempt interest. The remainder of the interest income is from interest from investments in bonds and certificates of deposits. The interest expense includes $$14,000$ associated with a loan to purchase the tax$-$exempt securities; the remainder is from the mortgage on buildings for the business. The dividend income is from stock that the company owns $15\%$ or less; they are considered qualified dividends.On $11/11/24,$ the company sold $10,000$ shares of stock in BCD Co$.$ that it purchased on $11/1/15$ with a basis of $$1,000,000$ for $$900,000.$ This transaction was reported on a Form $1099-$B with basis reported to the IRS.On $10/31/24,$ the company sold land that it purchased on $3/8/10$ with a basis of $$400,000$ for $$480,000.$The Sub$-$S has never been a Sub$-$C corporation. Therefore, you will not need to fill out a schedule M$-2.$The charitable contributions were cash contributions and made to organizations that qualify for the $60\%$ limit on charitable contributions.Financial Statements:Income Statement $($FYE $12/31/24)$Sales $ $4,000,000\mathrm{.}00($Cost of Goods Sold$)$ $ $(2,200,000\mathrm{.}00)$Gross margin $ $1,800,000\mathrm{.}00$ Gain on Sale of Land $ $80,000\mathrm{.}00$ Dividend income $ $120,000\mathrm{.}00$ Interest income $ $50,000\mathrm{.}00$ Interest expense $ $(40,000\mathrm{.}00)$Investment loss $ $(100,000\mathrm{.}00)$Charitable contributions $ $(200,000\mathrm{.}00)$Salaries$-$staff $ $(400,000\mathrm{.}00)$Salaries$-$Amelia $ $(150,000\mathrm{.}00)$Salaries$-$Adam $ $(150,000\mathrm{.}00)$Depreciation $ $(300,000\mathrm{.}00)$Repairs and maintenance $ $(20,000\mathrm{.}00)$Utilities $ $(100,000\mathrm{.}00)$State and local taxes $ $(150,000\mathrm{.}00)$Net income $ $440,000\mathrm{.}00$ Balance Sheet $*$The investments include $$1,000,000$ of tax$-$exempt securities for both years and no U$.$S$.$ government securities$.$All tax returns are available on irs.gov. You will need fill out the following forms: $1120-$S $($Pages $1$ through $5),1120-$S $($Schedule D$),1125-$E$,4797,$ Schedule K$-1($for Amelia Hernandez$)$ for the tax year $2024.$The company has never been a regular corporation at any point. You do not need to complete a Schedule M$-2.$If you use the other income $($line $5)$ or the other deductions $($line $20),$ make sure you attach a schedule listing what items are included on that line. Otherwise, you will lose all the points for that line because I do not know what you put there.Prepare a Schedule K$-1$ for Amelia Hernandez, $123$ Leland Avenue, South Bend, IN $46616.$ Although you would need to prepare a K$-1$ for Adam if you were to file this return, it is not required for this assignment.