Prepare a complete year 2015 federal corporate tax return for Acme Corporation.
Balance Sheet 1/1/15 12/31/15
Cash 20,000 500,000
Investments 30,000
Accounts Receivable 12,000
Equipment - Lawnmower 20,000
Accum. Depreciation (2,000)
Total Assets 20,000 560,000
Accounts Payable 384,000
Common Stock 20,000 20,000
Retained Earnings 156,000
Total Liab. And Equity 20,000 560,000
Income Statement
Sales 750,000
Tax exempt interest 8,000
Dividends Received on GM Stock 20,000
Salaries and Wages (480,000)
Depreciation (2,000)
Supplies and materials (80,000)
Meals and Entertainment (20,000)
Charitable contributions (40,000)
Book Income 156,000
Other Information
You are the sole shareholder of Acme Corporation.
Please note that the financial statements have already been issued using the information above and will not be amended.
You formed Acme by contributing $20,000 to the corporation in return for 1 share of stock on 1/01/15. You named yourself to the role of President and every other officer position. Your Acme salary for the year 2015 was $350,000. (This is included in the salary amount reported on the income statement.) Running Acme is your full time job.
On 1/1/15, you contributed a lawnmower purchased by you for $12,000 on 1/1/12. Until January 1, 2015, the lawnmower was used only for your lawn. Accordingly, no depreciation was taken on it. The fair market value of the mower was $20,000 on January 1. On the Acme books, straight line depreciation was used. For tax purposes, you will accelerate depreciation by using MACRS depreciation for a 5 year asset.
Acme also received a 2015K-1 for a partnership it owned during the year. The K-1 showed ordinary income of $12,000 and interest income of $14,000. No partnership income was shown on the financial statements.
Acme owns less than 1% of GM stock outstanding.
Acme has no cost of goods sold.
Please make up appropriate non-financial information that is not included above (e.g., address, etc.).
IRS forms can be obtained at: https://www.irs.gov/formspubs/