Prepare Schedules M-1, K, and K-1 (for Blake Turin only) for tax year 2017. See attached set of facts and tax forms.
Hint: ordinary income is $140,400. Income reconciliation is $134,000.
Link to forms:
https:// (M-1)
https:// (Schedule K-1)
https:// (Schedule K and L)
SCHEDULES M – 1 , K , AND K- I TAX YEAR 2017INCOMEGROSS RECEIPTSCOSTOF GOODS SOLD679 575TAX EXEMPT INCOM(432, 3031REGULAR INTEREST INCOMETOTAL INCOME4 300253, 57EXPENSESBOOK DEPRECIATIONOFFICER SALARY11.500ENALTIES EXPENSE85,000RENT EXPENSE1 000STATE AND LOCAL TAXESCHARITABLE CONTRIBUTIONSINTEREST EXPENSEBUSINESS INSURANCE EXPENS4 050MEALS AND ENTERTAINMENT EXPENSESUPPLIES EXPENSETELEPHONE EXPENSE2 300UTILITIES EXPENSEOFFICE EXPENSETOTAL EXPENSES139, 020NET INCOME PER BOOKS14, 556OTHER INFORMATIONNEWPORT NEWS , INCPO BOX 120 RUMFORD , RI O2916EIN 23 6392101BLAKE TURIN 50% OWNERADDRESS : 1700 ADDITION DRIVE PROVIDENCE . R1 02903SSN : 088 -76 – 6301TAX DEPRECIATION TOTALIRC SECTION 179 INCLUDED IN TAX DEPRECIATIONCASH DISTRIBUTIONS TO SHAREHOLDERS ( 50% EACH )50 000ADVANCE PAYMENT TAXABLE INCOME NOT INCLUDED IN BOOK INCOME13 700
