Business taxes | Accounting homework help

Davy Jones provides the following information for Davy Jones’ Nautical Tours, Inc, a C corporation which he operates with his business partner, William Turner. 

You’re required to prepare a Form 1120 U.S. Corporation Income Tax Return, an 1120 Statement 1 – Other Deductions, and an 1120 Schedule G – Information on Certain Persons Owning Stock  Davy Jones’ Nautical Tours, Inc, is operated by David K. Jones (SSN 000-00-0000) and William W. Turner (SSN 111-11-1111).

They are each 50% common shareholders in the business.  Principal Business or Professional Activity Code; 114110 Principal business; Charter fishing tours Employer Identification Number 867530950  Business address     1008 North Harbor Drive    San Diego, CA 92103      Home address (David K. Jones) 8700 Lake Murray Blvd #2 San Diego, 92119 

•The cash accounting method and GAAP are utilized  •The business was incorporated on January 1st, 2012  

•Wages consist of $25,000 paid to one employee and $15,000 to another  

•Officer’s Compensation; $42,000 payments to each officer, Jones and Turner.  •None of this compensation is claimed on Form 1125-A (Cost of Goods Sold).  •There is no preferred stock  

•Depreciation expense; The Jolly Roger was purchased for $850,000. The depreciation on the income statement is book depreciation and will differ from what is actually used on Line 20 Depreciation of form 1120. The boat is depreciated using the Modified Accelerated Cost Recovery System (MACRS), half year convention, is in its 4th year of service and the 10-year recovery period is used. Utilize Publication 946 How to Depreciate Property to calculate the correct depreciation amount to enter on the 1120 Line 20 (Form 4562 is not required). Locate Table A1 in the Appendix to calculate the tax-deductible depreciation.   

•Interest expense is interest paid on the loan for the boat; the boat loan is considered nonrecourse  

•Insurance payments were made to cover liability for guests and for the boat  

•Payroll taxes; FICA and FUTA payments made on behalf of employees and corporate officers  

•Travel was purely for business purposes  

•Parking fines are tickets Jones received for parking illegally  

•Lease expense was paid to Honda Motors for his mother’s car lease, who is not involved in the business in any way  

•Estimated payments; The Corporation made four quarterly estimated tax payments of $1,000   They’d like any overpayment refunded to them.  Davy Jones’ Nautical Tours, Inc. 2016 Income Statement    

Revenue   $400,950.00     

Wages   ($40,000.00)    

Officer’s Compensation   ($84,000.00)    

FICA   ($9,486.00)    

FUTA   ($169.00)    

Depreciation   ($85,000.00)    

Interest   ($43,900.00)    

Advertising   ($6,350.00)    

Supplies   ($23,795.00)    

Legal fees   ($6,940.00)    

Insurance   ($26,700.00)    

Boat slip rental   ($33,010.00)    

Travel   ($6,250.00)    

Office expense   ($7,940.00)    

Parking fines   ($1,350.00)    

Lease expense   ($3,650.00)    

Net Profit   $22,410.00     

Davy Jones’ Nautical Tour, Inc    

2016 Balance Sheet      1/1/2016   12/31/2016    

Cash   $15,500.00    $15,500.00     

Boat   $850,000.00    $850,000.00     

Accumulated Depreciation   ($255,000.00)   ($340,000.00)    

Total Assets   $610,500.00    $525,500.00            

Loans   $525,000.00    $417,590.00     

Equity Investment   $50,000.00    $50,000.00     

Retained Earnings   $35,500.00    $57,910.00     

Total Equity + Liability   $610,500.00    $525,500.00    

You will be required to fill out and submit the following forms: 

•1120 U.S. Corporation Income Tax Return  

•1120 Statement 1 – Other Deductions   

•1120 Schedule G – Information on Certain Persons Owning Stock

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

STAY HOME, SAVE LIVES. Order your essay today and save 20% with the discount code ATOM