Reference no: EM131045731

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/