<p> For this assignment, you will complete tax returns (Corporation Return ), You may use the tax software found at http://accountants.intuit.com/tax/proseries/ </p><p>Please note there is a limit of 5 returns per session.</p><p>Tax Return -Corporate Return</p><p>Background</p><p>Jane Collier, James Taye, and Steve Allwine each own one- third of the common stock of Tasty Treats and Beverages. The corporation was incorporated on April 3, 2004. It has only one class of stock outstanding and operates as a C corporation for tax purposes. Tasty Treats and Beverages caters kid-friendly social events.</p><p> Located at 1215 Blue Horizon, Dallas, TX 12234.  Employer Identification Number is 12-34567890.  Business activity is catering food. Its business activity code is 722300.  The shareholders also work as officers for the corporation as follows: o Jane is the chief executive officer and president (Social Security number 242-62-5786). o James is the executive vice president and chief operating officer (Social Security number 563-58-8923). o Steve is the vice president of finance (Social Security number 575-58-1572).  All officers devote 100% of their time to the business  All officers are U.S. citizens.  Use the accrual method of accounting and have a calendar year-end.  Four equal estimated tax payments of $28,000 each quarter. Its tax liability last year was $85,000.  If it has overpaid its federal tax liability, the corporation would like to receive a refund.  Dividend paid of $20,000 to its shareholders on October 1. The Corporation had ample earnings and profits (E&P) to absorb the distribution.</p><p>Financial Statements Tasty Treats and Beverages, Inc.</p><p>Income Statement</p><p>For year ended December 31, 2013</p><p>Revenue from sales 1,500,000</p><p>Sales returns and allowances (25,000)</p><p>Cost of goods sold (325,000)</p><p>Gross profit from operations 1,150,000</p><p>Other Income: </p><p>Capital loss (7,500)</p><p>Dividend income 15,000</p><p>Interest income 12,000</p><p>Gross income 1,169,500</p><p>Expenses: </p><p>Compensation (750,000)</p><p>Depreciation (12,000) Bad debt expense (7,800)</p><p>Meals and entertainment (3,000)</p><p>Maintenance (2,500)</p><p>Property taxes (10,000)</p><p>State income taxes (30,000)</p><p>Other taxes (11,000)</p><p>Rent (28,000)</p><p>Interest (7,300)</p><p>Advertising (6,200)</p><p>Professional services (5,000)</p><p>Employee benefits (8,000)</p><p>Supplies (2,500)</p><p>Other expenses (1,750)</p><p>Total expenses (885,050)</p><p>Income before taxes 284,450 Federal income tax expense 96,713</p><p>Net income after taxes 187,737</p><p></p><p>Tasty Treats and Beverages, Inc.</p><p>Balance Sheet</p><p>December 31, 2013</p><p>ASSETS January 2013 December 2013</p><p>Cash 175,000 190,000</p><p>Accounts Receivable 63,000 54,000</p><p>Allowance for doubtful accounts (8,000) (7,000)</p><p>Inventory 225,000 275,000</p><p>US government bonds 30,000 25,000</p><p>State and local bonds 50,000 50,000</p><p>Investments in stock 325,000 335,000</p><p>Fixed assets 475,000 485,000</p><p>Accumulated depreciation (198,000) (215,000) Other assets 11,000 12,000</p><p>Total assets 1,148,000 1,204,000</p><p>Liabilities and Stockholder's Equity</p><p>Accounts payable 225,000 200,000</p><p>Other current liabilities 135,000 55,000</p><p>Other liabilities 75,000 68,263</p><p>Capital stock 250,000 250,000</p><p>Retained earnings 463,000 630,737</p><p>Total liabilities and stockholder's equity 1,148,000 1,204,000</p><p> Additional Information </p><p> o Inventory-related purchases during 2013 were $175,000. It values its inventory based on cost using the FIFO inventory cost flow method. Assume the rules of §263A do not apply. o Of the $12,000 interest income, $1,500 was from a City of Dees bond that was used to fund public activities (issued in 2011), $1,750 was from an Border city bond used to fund private activities (issued in 2004), $2,500 was from a U.S. Treasury bond, and the remaining $6,250 was from a money market account. o Dividend income came from ABC Inc. Owned 10,000 shares of the stock in ABC Inc. at the beginning of the year. This represented 10 percent of outstanding stock. o On September 1, 2013, the corporation sold 1,000 shares of its ABC stock for $15,000. It had originally purchased these shares on June 13, 2006, for $7,500. After the sale, the Corporation owned 9 percent of ABC. o compensation is as follows: . Jane $175,000 . James $150,000 . Steve $150,000 . Other $275,000 o The Corporation wrote off $10,000 in accounts receivable as uncollectible during the year. o Regular tax depreciation was $28,000. None of the depreciation should be claimed on Form 1125A. o The $7,300 interest expense was from a business loan. o Other expenses include $3,000 for premiums paid on term life insurance policies for which Tasty Treats and Beverages, Inc. is the beneficiary. The policies cover the lives of Jane, James, and Steve.</p>