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TUTORS WITH EXPERTISE IN ACCOUNTING & CORPORATE TAXATION PLEASE!!!ALSO, PLEASE REVIEW INFORMATION BELOW AND REQUIREMENTS BEFORE ACCEPTING TO TAKE ON THIS PROJECT!!!Module 8 Portfolio Milestone & Portfolio Project, Option #1: Corporate Tax Returns.Submittals - Form 1120 (Attached), Template w/ calculations (Attached), Written analysisOPTION #1: CORPORATE TAX RETURNSReview the grading rubric below to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.Because it is important for accountants to demonstrate the filing requirements for specialized tax returns, for this final project you will complete a corporate tax return and provide an analysis of the ethical considerations related to tax preparation involving corporations.Key Components:Use the financial data below to complete Form 1120.Complete the Student Template (provided in Module 8 under this assignment) that has the respective tax forms and schedules required to complete the return. Complete all the parts of your respective business tax return for which there is information.Click this link to download Form 1120 (Links to an external site.) from IRS.gov. Complete the return for BADEC.In a separate document:Show your income tax calculations.Prepare a write-up on analysis of the ethical considerations related to tax preparation.Requirements:Submit 1) your tax return template, 2) Income tax calculations, and 3) your analysis of the ethical considerations related to tax preparations involving corporations (3 pages minimum). Your paper must be formatted according to the CSU-Global Guide to Writing and APA. (Links to an external site.) Note: The Submission box does not accept fillable .pdf documents. Use the File—>Print—>Print to PDF, to save the .pdf as this will allow all information to come through.BADEC Corporation12/31/2016AssetsCash$485,600Computer$7,000AccDep-Computer$(1,745)Furniture$3,000AccDep-Furniture$(321)Land$50,000Total Assets$543,534LiabilitiesEquityRetained Earnings$53,534Stock-Anderson$50,000Stock-Bacon$150,000Stock-Cox$100,000Stock-Day$50,000Stock-Elders$40,000Stock-Fawcett$80,000Stock-Gonzalez$20,000Total Liabilities plus Equity$543,534 f1120.pdf textbook_info.docx act415_portfolio_option1_financials_template.xlsx Unformatted Attachment Preview 1120 U.S. Corporation Income Tax Return Form Department of the Treasury Internal Revenue Service A Check if: 1a Consolidated return (attach Form 851) . b Life/nonlife consoli- dated return . . . 2 Personal holding co. (attach Sch. PH) . . 3 Personal service corp. (see instructions) . For calendar year 2019 or tax year beginning ▶ TYPE OR PRINT Income Deductions (See instructions for limitations on deductions.) 2019 , 20 Name B Employer identification number Number, street, and room or suite no. If a P.O. box, see instructions. C Date incorporated City or town, state or province, country, and ZIP or foreign postal code D Total assets (see instructions) $ E Check if: (1) (2) Initial return (3) Final return (4) Name change Address change . . . . . . . . . . . . . 1a 2 Returns and allowances . . . . . . Balance. Subtract line 1b from line 1a . Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b . . . . . . . . . . . . . . 1c 2 3 4 5 Gross profit. Subtract line 2 from line 1c . . Dividends and inclusions (Schedule C, line 23) Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 5 6 7 8 Gross rents . . . . . . . . . . . . . . Gross royalties . . . . . . . . . . . . . Capital gain net income (attach Schedule D (Form 1120)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 8 9 10 11 12 Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (see instructions—attach statement) . . . . . . Total income. Add lines 3 through 10 . . . . . . . . . Compensation of officers (see instructions—attach Form 1125-E) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 11 13 14 Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . . Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 14 15 16 17 Bad debts . . . Rents . . . . Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 16 17 18 19 20 Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . . Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . . . . . . 18 19 20 21 22 23 Depletion . . . . . . . . Advertising . . . . . . . Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 22 23 24 25 26 Employee benefit programs . . Reserved for future use . . . . Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 25 26 27 28 29a Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . . Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. Net operating loss deduction (see instructions) . . . . . . . . . . . 29a ▶ . 27 28 b c Tax, Refundable Credits, and Payments , 2019, ending Go to www.irs.gov/Form1120 for instructions and the latest information. . 4 Schedule M-3 attached 1a OMB No. 1545-0123 b c Gross receipts or sales . . . . . . . . . . . 30 Special deductions (Schedule C, line 24) . . . . . . . . Add lines 29a and 29b . . . . . . . . . . . . . Taxable income. Subtract line 29c from line 28. See instructions . . . . . . . . . . . . . . . 31 32 33 Total tax (Schedule J, Part I, line 11) . . . . . . . . . . . . . . . 2019 net 965 tax liability paid (Schedule J, Part II, line 12) . . . . . . . . . Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23) . 29b . . . . ▶ ▶ . . . . . . . . . . 29c 30 . . . . . . . . . . . . . . . 31 32 33 34 35 36 Estimated tax penalty. See instructions. Check if Form 2220 is attached . . . . . . . Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed . Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid . . . . . . . . . . . 34 35 36 37 Enter amount from line 36 you want: Credited to 2020 estimated tax ▶ Refunded ▶ 37 . . . . . . ▶ Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Date Signature of officer Paid Preparer Use Only Print/Type preparer’s name Preparer’s signature ▲ ▲ Sign Here . . May the IRS discuss this return with the preparer shown below? See instructions. Yes No Title Date Check if self-employed Firm’s name ▶ Firm’s EIN Firm’s address ▶ Phone no. For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11450Q PTIN ▶ Form 1120 (2019) Page 2 Form 1120 (2019) Schedule C Dividends, Inclusions, and Special Deductions (see instructions) (a) Dividends and inclusions (b) \% 1 Dividends from less-than-20\%-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . 50 2 Dividends from 20\%-or-more-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . 65 3 Dividends on certain debt-financed stock of domestic and foreign corporations 4 Dividends on certain preferred stock of less-than-20\%-owned public utilities 5 . . see instructions . . . 23.3 Dividends on certain preferred stock of 20\%-or-more-owned public utilities . . . . 26.7 6 Dividends from less-than-20\%-owned foreign corporations and certain FSCs . . . 50 7 Dividends from 20\%-or-more-owned foreign corporations and certain FSCs . . . 65 8 Dividends from wholly owned foreign subsidiaries . . . . . . . 100 9 Subtotal. Add lines 1 through 8. See instructions for limitations . . . . . . . see instructions . . . . 10 Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 . . . . . 100 11 Dividends from affiliated group members . . . . . . . . . . . . . . 100 12 Dividends from certain FSCs . . . . . . . . . . . . . 100 13 Foreign-source portion of dividends received from a specified 10\%-owned foreign corporation (excluding hybrid dividends) (see instructions) . . . . . . . . . 14 Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13 (including any hybrid dividends) . . . . . . . . . . . . . . . . . 15 Section 965(a) inclusion . 16a Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471) (see instructions) . . . . . . . . . . . . . . . . . . . . . b Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions) . . . . . . . . . . . . . . . . . . . c Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17 (attach Form(s) 5471) (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992) . . 18 Gross-up for foreign taxes deemed paid 19 IC-DISC and former DISC dividends not included on line 1, 2, or 3 20 Other dividends 21 Deduction for dividends paid on certain preferred stock of public utilities 22 Section 250 deduction (attach Form 8993) 23 Total dividends and inclusions. Add column (a), lines 9 through 20. Enter here and on page 1, line 4 . . . . . . . . . . . . . . . . . . . . . . Total special deductions. Add column (c), lines 9 through 22. Enter here and on page 1, line 29b . 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 see instructions . 17 (c) Special deductions (a) × (b) 100 . . . . . . Form 1120 (2019) Page 3 Form 1120 (2019) Schedule J Tax Computation and Payment (see instructions) Part I–Tax Computation 1 2 Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)). See instructions ▶ Income tax. See instructions . . . . . . . . . . . . . . . . . . . . . . . . 3 4 5a Base erosion minimum tax amount (attach Form 8991) . Add lines 2 and 3 . . . . . . . . . . . . Foreign tax credit (attach Form 1118) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b c d Credit from Form 8834 (see instructions) . . . . General business credit (attach Form 3800) . . . Credit for prior year minimum tax (attach Form 8827) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e 6 7 Bond credits from Form 8912 . . . Total credits. Add lines 5a through 5e Subtract line 6 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9a b Personal holding company tax (attach Schedule PH (Form 1120)) . Recapture of investment credit (attach Form 4255) . . . . . Recapture of low-income housing credit (attach Form 8611) . . . . . . . . . . . . . . . . . . . . c d e f . . . . . . . . . . . . . . . . . . 5a . 2 . . . . . . . . . . 3 4 . . . . . . . . . . 6 7 . . . . . 8 5b 5c 5d . . . 5e . . . . . . 9a 9b Interest due under the look-back method—completed long-term contracts (attach Form 8697) . . . . . . . . . . . . . . . . . . . . . . . Interest due under the look-back method—income forecast method (attach Form 8866) 9c 9d . . . . . 10 . . . . . 11 2019 net 965 tax liability paid from Form 965-B, Part II, column (k), line 3. Enter here and on page 1, line 32 . . 12 10 Alternative tax on qualifying shipping activities (attach Form 8902) Other (see instructions—attach statement) . . . . . . . Total. Add lines 9a through 9f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9e 9f . . 11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 . . . . . . . . . Part II–Section 965 Payments (see instructions) 12 Part III–Payments, Refundable Credits, and Section 965 Net Tax Liability 13 14 2018 overpayment credited to 2019 2019 estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 15 16 17 2019 refund applied for on Form 4466 . Combine lines 13, 14, and 15 . . . Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 ( 16 17 18 19 20 Withholding (see instructions) . . . . Total payments. Add lines 16, 17, and 18 Refundable credits from: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 19 a b c Form 2439 . . . Form 4136 . . . Form 8827, line 5c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d Other (attach statement—see instructions) . . . . . . . . . . . . . Total credits. Add lines 20a through 20d . . . . . . . . . . . . . . 2019 net 965 tax liability from Form 965-B, Part I, column (d), line 3. See instructions . 20d . . . . . . . . . . . . . . 21 22 21 22 23 . . . . . . . . . . . . . . . . . . . . . ) 20a 20b 20c . . Total payments, credits, and section 965 net tax liability. Add lines 19, 21, and 22. Enter here and on page 1, line 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Form 1120 (2019) Page 4 Form 1120 (2019) Schedule K 1 2 Other Information (see instructions) a Check accounting method: a Cash See the instructions and enter the: Business activity code no. ▶ b c Business activity ▶ Product or service ▶ b Accrual c Yes Other (specify) ▶ 3 Is the corporation a subsidiary in an affiliated group or a parent–subsidiary controlled group? If “Yes,” enter name and EIN of the parent corporation ▶ 4 At the end of the tax year: . . . . . . . . . . a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20\% or more, or own, directly or indirectly, 50\% or more of the total voting power of all classes of the corporation’s stock entitled to vote? If “Yes,” complete Part I of Schedule G (Form 1120) (attach Schedule G) . . . . . . b Did any individual or estate own directly 20\% or more, or own, directly or indirectly, 50\% or more of the total voting power of all classes of the corporation’s stock entitled to vote? If “Yes,” complete Part II of Schedule G (Form 1120) (attach Schedule G) . 5 No At the end of the tax year, did the corporation: a Own directly 20\% or more, or own, directly or indirectly, 50\% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (iv) below. (i) Name of Corporation (ii) Employer Identification Number (if any) (iv) Percentage Owned in Voting Stock (iii) Country of Incorporation b Own directly an interest of 20\% or more, or own, directly or indirectly, an interest of 50\% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (iv) below. (i) Name of Entity (ii) Employer Identification Number (if any) (iii) Country of Organization (iv) Maximum Percentage Owned in Profit, Loss, or Capital 6 During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in excess of the corporation’s current and accumulated earnings and profits? See sections 301 and 316 . . . . . . . . If “Yes,” file Form 5452, Corporate Report of Nondividend Distributions. See the instructions for Form 5452. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary. 7 At any time during the tax year, did one foreign person own, directly or indirectly, at least 25\% of the total voting power of all classes of the corporation’s stock entitled to vote or at least 25\% of the total value of all classes of the corporation’s stock? . For rules of attribution, see section 318. If “Yes,” enter: (a) Percentage owned ▶ and (b) Owner’s country ▶ (c) The corporation may have to file Form 5472, Information Return of a 25\% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached ▶ 8 10 Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . . ▶ If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. Enter the amount of tax-exempt interest received or accrued during the tax year ▶ $ Enter the number of shareholders at the end of the tax year (if 100 or fewer) ▶ 11 If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions) 9 ▶ If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or the election will not be valid. 12 Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported on page 1, line 29a.) . . . . . . . . . . . . . . . . . . . . . . . . . ▶ $ Form 1120 (2019) Page 5 Form 1120 (2019) Schedule K 13 Other Information (continued from page 4) Are the corporation’s total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the tax year less than $250,000? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No If “Yes,” the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions and the book value of property distributions (other than cash) made during the tax year ▶ $ 14 Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement? See instructions If “Yes,” complete and attach Schedule UTP. . . . . 15a b Did the corporation make any payments in 2019 that would require it to file Form(s) 1099? If “Yes,” did or will the corporation file required Form(s) 1099? . . . . . . . . . . . . . . . . . 16 During this tax year, did the corporation have an 80\%-or-more change in ownership, including a change due to redemption of its own stock? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65\% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction? . . . . . . . . . . . . . . . . . . 18 Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair market value of more than $1 million? . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 During the corporation’s tax year, did the corporation make any payments that would require it to file Forms 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474) of the Code? . . . . . . . . Is the corporation operating on a cooperative basis?. . . . . . . . . . . . . . . . . . . . . . . 20 . . . . . . . . . . . . . . 21 During the tax year, did the corporation pay or accrue any interest or royalty for which the deduction is not allowed under section 267A? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If “Yes,” enter the total amount of the disallowed deductions ▶ $ 22 Does the corporation have gross receipts of at least $500 million in any of the 3 preceding tax years? (See sections 59A(e)(2) and (3)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If “Yes,” complete and attach Form 8991. 23 Did the corporation have an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . Does the corporation satisfy one or more of the following? See instructions . . . . . . . . . . . . . . . . The corporation owns a pass-through entity with current, or prior year carryover, excess business interest expense. 24 a b c 25 The corporation’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $26 million and the corporation has business interest expense. The corporation is a tax shelter and the corporation has business interest expense. If “Yes, ... Purchase answer to see full attachment