Tax Return Problem C3-66 page 3-65 ( This is all based on current tax rates)

Melodic Musical Sales, Inc.

XX-2014012 2016 Form 1120

Note, the tax return says 2015, but I want you to do 2016you need to add a year to every place a year is referenced

Below are some calculations performed for you to use on the tax return.

Current year depreciation on property placed in service before 2016:

Building ($1,000,000 x 0.02564) $ 25,640 Equipment 1 ($200,000 x 0.1249 x 0.5) 12,490 Equipment 2 ($400,000 x 0.1249) 49,960 Trucks ($100,000 x 0.192) 19,200 Total $107,290

Current year depreciation on equipment placed in service in 2016:

Sec. 179 expensing $500,000

MACRS, mid-quarter [($800,000 - $500,000) x 0.0357] 10,710

Total $510,710

Underpayment penalty:

Omit Form 2220 and just insert $2,607 penalty on Form 1120, Page 1, Line 33.

Schedule M-3:

Omit this schedule.

Need to complete form 1120, form 1125-A, form 1125-E, schedule D (1120), form 4562, form 4797 based on the below information, please help if you have software this will be a breeze. (I dont have software :( )

TAX FORM/RETURN PREPARATION PROBLEMS Melodic Musical Sales, Inc. is located at 5500 Fourth Avenue, City, ST 98765The cor- poration uses the calendar year and accrual basis for both book and tax purposes. It is engaged in the sale of musical instruments with an employer identification number (EIN) of XX-2017015. The company incorporated on December 31, 2011, and began busi- ness on January 2, 2012. Table C:3-4 contains balance sheet information at January 2015, and December 31, 2015. Table C:3-5 presents an income statement for 2015. These schedules are presented on a book basis. Other information follows the tables. C:3-66 Estimated Tax Payments (Form 2220) The corporation deposited estimated tax payments as follows: April 15, 2015 June 15, 2015 September 15, 2015 December 15, 2015 Total S 90,000 180,000 220,000 220,000 710,000 TAX FORM/RETURN PREPARATION PROBLEMS Melodic Musical Sales, Inc. is located at 5500 Fourth Avenue, City, ST 98765The cor- poration uses the calendar year and accrual basis for both book and tax purposes. It is engaged in the sale of musical instruments with an employer identification number (EIN) of XX-2017015. The company incorporated on December 31, 2011, and began busi- ness on January 2, 2012. Table C:3-4 contains balance sheet information at January 2015, and December 31, 2015. Table C:3-5 presents an income statement for 2015. These schedules are presented on a book basis. Other information follows the tables. C:3-66 Estimated Tax Payments (Form 2220) The corporation deposited estimated tax payments as follows: April 15, 2015 June 15, 2015 September 15, 2015 December 15, 2015 Total S 90,000 180,000 220,000 220,000 710,000