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How do I prepare the C Corporation tax return for the question C:3-66?
How do I prepare the C Corporation tax return for the question C:3-66? I need to prepare a Form 1120, Form 1125-A, Form 1125-E, Schedule D (Form 1120), Form 4562 and Form 4797. And this is an additional informations that go with the question.Melodic Musical Sales, Inc. XX-2014012 2012 Form 1120 Current year depreciation on property placed in service before 2012: Building ($1,400,000 x 0.02564) $ 35,896 Equipment 1 ($320,000 x 0.1249 x 0.5) 19,984 Equipment 2 ($640,000 x 0.1249) 79,936 Trucks ($250,000 x 0.192) 48,000 Total $183,816 Current year depreciation on equipment placed in service in 2012: Sec. 179 expensing $500,000 MACRS, mid-quarter [($2,000,000 - $500,000) x 0.0357] 53,550 Organizational expenditure deduction for 2012: $ 400 Capital gains and losses for 2012: Short-term capital gain on sale of PDQ stock $ 30,000 Long-term capital loss on sale of JSB stock (12,000) Sale of Equipment 1: Selling price $360,000* Cost $320,000 Minus: Accumulated depreciation (200,048) Adjusted basis (119,952) Gain recognized $240,048 Sec. 1245 recapture $200,048 Sec. 1231 gain $ 40,000 *Correction: The selling price for Equipment 1 should be $360,000 rather than$325,000 as stated in the text problem. This solution reflects the $360,000 amount.Underpayment penalty: Omit Form 2220 and just insert $3,169 penalty on Form 1120, Page 1, Line 33. Schedule M-3: Omit this schedule.