Profit & Loss January through December 2018 Income $ 70,000 Expense Automobile Expense Bank Service Charges Computer and Internet Expenses Insurance Office Supplies Officer Salary Payroll Taxes Postage and Delivery Professional Fees Rent Expense Repairs and Maintenance Telephone Expense Tolls and Parking Travel Expense Utilities Total Expense Net Income
(Loss) 7,830 186 325 199 1,470 29,500 3,511 183 8,709 9.420 103 6,430 119 1,650 2,070 71,705 ($1,705) Balance Sheet As of December 31, 2018 12/31/18 12/31/17 Assets Current Assets Operating Cash 1,486 $ 3,891 Total Current Assets 1,486 3,891 Other Assets Investment in Stock Total Other Assets Total Assets 1,000 1,000 1,000 $ 1,000 $ $ 2,486 $ 4,891 Liabilities & Equity Shareholder Loan Payable Total Liabilities $ 1,00 000 1,000 1.000 100 100 3,000 Equity Common Stock Additional Paid-in Capital Retained Earnings Net Income Total Equity Total Liabilities & Equity 3,791 (1,705) 1,486 3,891 $ 4.891 $ 2,486 Problem information given Total Contributions Total Distributions Total Net Income OR Total Net (Loss) Shareholder’s Basis Computation NH Beginning of year stock basis Capital contributions Net Income Add lines 1 through 3 Distributions (not to exceed line 4) Subtract line 5 from line 4 Net Loss (not to exceed line 6) End of year stock basis DO YOU Net loss carried over to next year, if any 2020/groups/ 28089_1/1_2388815_1/2018%20Form%20K-1%20%28Form%201120S%29%20f. 671117 OM N 1648-0023 Part III Shareholder Share of Current Year Income Deductions, Credits, and Other Home 2018 Schedule K-1 Form 11205) Department of the Wanderervice TRIO come Shareholder’s Share of Income, Deductions, Credits, etc. tak dapat Partl Information About the Corporation C S Center where period Part II Information About the Shareholder The following information is necessary to complete the second tax return assignment. 1. Pages 1 to 6 of the 2018 Form 11205 (placed in the file exchange) 2. Schedule K-1 of Form 11205 (placed in the file exchange) 3. Income statement 4. Balance sheet 5. Worksheet for Shareholder’s Basis Computation The corporation’s address is: Stockton University Productions Inc 101 Vera King Farris Drive Galloway, New Jersey 08205 Other information necessary for the tax return: 1. Employer identification number: XX-XXXXXXX 2. Date incorporated: 01/01/2015 3. Accounting method: Cash 4. Business activity code: 711320 5. Business activity: Business Promotions 6. Product or Service: Promotions 7. You may disregard answering all the questions on Schedule B 8. Schedule K-answer line 1, line 16d and line 18 9. Schedule L, M-1 and M-2 are to be answered similar to the C corp tax return There is only one shareholder who owns 100% of the stock: Stanley Morner 101 Vera King Farris Drive Galloway, New Jersey 08205 SS# XXX-XX-XXXX Assume that Stanley has a beginning balance in stock basis of: Also, Stanley contributes capital (cash) during the year of: Stanley has also decided that he will take a distribution of: (The distribution offects basis and needs to be reported) 4,000 3,000 (3,700) After you have completed the tax return, calculate the following: 1. Allowed loss to report on his personal tax return. 2. Any suspended loss due to lack of stock basis. 3. End of year balance of his stock basis.