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Auditing Homework Help for Accounting and Finance Students

Auditing is an important part of accounting and finance because it focuses on examining financial records, transactions, internal controls, and related evidence to determine whether financial information is reliable and prepared according to applicable requirements. For students, however, understanding audit procedures, evidence, risk assessment, internal controls, and audit reporting can become challenging when several assignments and deadlines overlap. TutorBin provides auditing homework help to help students understand difficult concepts, work through audit problems, and approach academic assignments with greater clarity.

Whether you are working on an audit report, internal control case study, risk assessment, financial statement audit, or research-based assignment, guidance from an experienced Auditing Homework Tutor can help you understand the reasoning behind each step instead of simply focusing on the final answer.

What is Auditing?

What is Auditing? Auditing is the systematic examination and evaluation of financial information, records, transactions, controls, and other relevant evidence. The purpose is to provide an independent assessment of whether financial statements are presented fairly and prepared in accordance with the applicable financial reporting framework and requirements.

In an academic auditing course, students may study topics such as audit planning, audit evidence, materiality, audit risk, internal controls, sampling, substantive procedures, compliance, fraud risks, and audit opinions. Understanding how these concepts connect is often more important than memorizing individual definitions.

For example, an auditor may need to identify potential risks, determine the appropriate audit procedures, evaluate evidence, and decide how the findings affect the audit conclusion. This makes auditing assignments more analytical than purely theoretical.

Why Do Students Need Auditing Homework Help?

Many students today prefer a homework helper no AI approach when dealing with auditing coursework because subjects such as audit risk, internal controls, materiality, and audit evidence require detailed reasoning and subject expertise. Human-guided academic support can help students understand the logic behind auditing procedures, ask follow-up questions, and receive personalized explanations tailored to their coursework requirements. TutorBin also emphasizes human expert support across its homework services, making it a suitable option for students seeking concept-focused academic guidance.

Students commonly seek auditing homework help when they are dealing with:
  • Complex audit concepts and terminology
  • Audit risk and materiality calculations
  • Internal control evaluation
  • Audit planning and procedures
  • Financial statement analysis
  • Audit evidence and sampling
  • Fraud and error-related questions
  • Audit reports and opinions
  • Case-study assignments
  • Research papers and presentations
  • Last-minute auditing coursework

Getting academic guidance can make these topics easier to break down. Instead of approaching a long case study as one complicated problem, students can divide it into objectives, risks, evidence, procedures, findings, and conclusions.

Auditing Assignment Help for Different Academic Requirements

Auditing coursework can take many forms. One assignment may ask for a theoretical explanation, while another may require students to analyze a realistic business situation. TutorBin's Auditing Assignment Help can be useful for students working on different types of academic tasks, including:

Audit Case Studies

Case studies require students to apply auditing principles to a specific business situation. You may need to identify risks, evaluate controls, recommend procedures, or explain how an auditor should respond to particular findings.

Internal Control Assignments

Internal controls are a major area of auditing. Students may be asked to identify weaknesses in an organization's control environment and explain the potential consequences. Assignments can also require recommendations for improving authorization, segregation of duties, documentation, or monitoring processes.

Audit Risk and Materiality

Questions involving audit risk and materiality require careful interpretation. Students may need to distinguish between inherent risk, control risk, and detection risk while considering the significance of potential misstatements.

Audit Evidence and Procedures

Students may need to determine which evidence or audit procedure would be appropriate for a particular assertion. These questions test whether you understand the relationship between audit objectives, risks, evidence, and procedures.

Audit Report Assignments

Some coursework focuses on different types of audit opinions and the circumstances that can affect an auditor's report. These assignments require students to analyze the facts before explaining the appropriate reporting outcome.

Research and Written Assignments

Auditing courses may also include essays, research papers, presentations, and discussion posts. These tasks require clear explanations, appropriate academic sources, logical organization, and accurate use of auditing terminology.

How an Auditing Homework Tutor Can Help

An Auditing Homework Tutor can provide subject-specific guidance when you are struggling with a concept or assignment. Instead of treating every question in the same way, a tutor can help you understand what the question is actually asking.

For example, if an assignment presents a company's internal-control system, the first step is not necessarily to write a conclusion. You may need to identify the relevant control objective, determine the weakness, explain the associated risk, and then recommend a suitable control.

Tutor support can help students:
  • Understand difficult auditing terminology
  • Break large questions into manageable steps
  • Identify the key requirements of an assignment
  • Understand audit procedures and evidence
  • Review calculations and reasoning
  • Organize case-study responses
  • Improve the structure of written answers
  • Clarify topics before exams
  • Review completed coursework for errors or gaps

The objective is to make difficult auditing concepts easier to understand and apply.

Do My Auditing Assignment: What Kind of Support Do You Need?

Students searching for do my auditing or Do my auditing assignment help may actually need different forms of academic support. Some students are looking for explanations because they cannot understand a particular question. Others may need help reviewing their approach or organizing a lengthy assignment.

Before requesting help, identify the specific part of the task causing difficulty. It could be:
  • Understanding the question
  • Finding the appropriate auditing concept
  • Applying a standard or framework
  • Performing an audit-related calculation
  • Evaluating internal controls
  • Interpreting audit evidence
  • Structuring a case-study answer
  • Checking an existing solution
  • Improving academic writing and presentation

Being specific about the problem makes it easier to receive relevant guidance and use the explanation as part of your learning process.

Auditing Assignments Online: Topics You Can Study

When completing auditing assignments online, students may encounter a broad range of topics. The exact syllabus differs by university and course, but common areas include:

  • Introduction to auditing
  • Audit objectives and responsibilities
  • Audit planning
  • Audit risk
  • Materiality
  • Internal control systems
  • Audit evidence
  • Audit sampling
  • Substantive testing
  • Compliance testing
  • Fraud risk
  • Financial statement assertions
  • Audit documentation
  • Inventory auditing
  • Revenue auditing
  • Accounts receivable auditing
  • Cash and bank auditing
  • Fixed-asset auditing
  • Payroll auditing
  • Audit reports and opinions

Working through examples from these areas can help students connect theoretical principles with practical audit situations.

Auditing Assignment Helpers for Difficult Questions

Auditing assignment helpers can be particularly useful when an assignment includes a large case study or several connected questions.

Suppose a question asks you to evaluate an organization's inventory controls. You might need to consider authorization procedures, physical inventory counts, documentation, inventory records, segregation of duties, valuation, and potential misstatements.

A structured approach can make the task easier: Step 1: Understand the scenario

Read the case carefully and identify the business processes involved.

Step 2: Identify the audit objective

Determine what the auditor is trying to establish.

Step 3: Identify potential risks

Look for weaknesses, unusual transactions, missing documentation, or circumstances that could result in misstatement.

Step 4: Determine appropriate evidence

Consider what information would provide support for the audit conclusion.

Step 5: Select suitable procedures

Explain how an auditor could obtain and evaluate the required evidence.

Step 6: Form the conclusion

Connect the evidence and findings to the question being asked.

This approach helps students develop analytical skills that can be applied to future auditing coursework.

Auditing Assignment Writing Service for Academic Support

An auditing assignment writing service may be relevant when students need support with a lengthy academic paper, case study, or research-based task. However, quality academic support should focus on clear reasoning and subject understanding rather than simply providing disconnected answers.

A strong auditing assignment should generally have:
  • A clear introduction
  • Accurate definitions and concepts
  • Logical analysis
  • Appropriate audit terminology
  • Evidence-based explanations
  • Relevant examples where necessary
  • Clear headings and organization
  • A conclusion connected to the analysis
  • Proper academic referencing where required

If your professor has provided a specific format, rubric, citation style, word count, or source requirement, those instructions should remain the primary guide for preparing the assignment.

Help My Auditing Assignment with Step-by-Step Guidance

If you are thinking, help my auditing assignment, start by identifying the exact area where you are stuck. You may not need assistance with the entire assignment. For example, if you understand audit planning but cannot determine which procedures address a particular risk, targeted guidance can help you understand the relationship between the risk and the procedure.

Similarly, if you have completed an assignment but are unsure whether your explanation is logically structured, reviewing the argument section by section can help identify gaps.

This type of targeted support can also help you become more confident when approaching similar questions independently.

Auditing Assignment Help Online from Subject Experts

With Auditing Assignment Help Online, students can seek guidance without depending entirely on traditional classroom hours. Online academic support can be useful when coursework, exams, and other responsibilities create scheduling challenges.

TutorBin currently presents its auditing page as offering access to skilled experts and 24/7 support, and its page also features examples of auditing-related academic questions covering areas such as tax-related research, productivity analysis, accounting models, closing entries, inventory-count planning, and tax opinion work.

Students can use this type of support to discuss difficult questions, clarify concepts, understand assignment requirements, and work through challenging auditing topics.

Help with Auditing Assignment: A Better Way to Approach Coursework

When you need Help with Auditing Assignment, avoid starting by searching immediately for a final answer. First, understand the question and identify the concept being tested. Ask yourself:

  • What is the question asking me to determine?
  • Which auditing concept applies?
  • What facts from the case are important?
  • What evidence supports my reasoning?
  • Are there calculations involved?
  • What conclusion follows from the analysis?
  • Does my answer address every part of the question?

This process encourages active learning and can make your future assignments easier.

Why Choose TutorBin for Auditing Homework Help?

Students facing multiple deadlines often search for a reliable homework doer service to manage challenging coursework efficiently. Auditing assignments can involve lengthy case studies, financial statement analysis, internal-control evaluations, and audit-report preparation, all of which require significant time and attention. By seeking structured academic assistance, students can better understand assignment requirements, improve the quality of their submissions, and stay on track with demanding academic schedules while strengthening their auditing knowledge.

Frequently Asked Questions About Auditing Homework Help

What is auditing in simple words?

Auditing is the systematic examination of financial information, records, transactions, and related evidence to assess whether financial statements are reliable and prepared according to applicable requirements.

Can I get help with an auditing assignment?

Yes. Students can seek academic guidance for auditing case studies, calculations, research papers, audit procedures, internal controls, audit evidence, and other coursework topics.

What does an Auditing Homework Tutor do?

An Auditing Homework Tutor helps students understand auditing concepts, interpret questions, work through difficult problems, review reasoning, and develop a clearer approach to their coursework.

Can I get help with auditing assignments online?

Yes. TutorBin provides online academic support for auditing assignments, allowing students to seek guidance remotely and discuss auditing questions with subject-focused tutors. Whether you need help understanding audit procedures, internal controls, audit risk, or case-study assignments, TutorBin's experts can provide personalized assistance to help you approach your coursework with greater confidence.

What topics are covered in auditing homework help?

Common topics include audit planning, audit risk, materiality, internal controls, audit evidence, sampling, substantive procedures, fraud risks, financial statement assertions, and audit reporting.

Is auditing difficult for accounting students?

Auditing can be challenging because it requires students to combine accounting knowledge with analytical reasoning and professional judgment. Practice and concept-focused guidance can make complex topics easier to understand.

How can I improve my auditing assignment?

Start by understanding the question, identify the relevant auditing concept, organize the facts, explain your reasoning, support your analysis with appropriate evidence, and check that your conclusion directly answers the assignment requirements.

Get Help with Your Auditing Coursework

Auditing becomes easier to approach when complex questions are divided into clear steps. From understanding What is Auditing to working through audit risk, internal controls, evidence, procedures, and reporting, students can benefit from focused subject guidance.

If you are struggling with an upcoming deadline, a complicated case study, or a difficult auditing concept, TutorBin's auditing homework help can provide subject-focused academic support to help you understand the task and approach your coursework with greater confidence.

Recently Asked Auditing Questions

Expert help when you need it
  • Q1: Return with Rental, Flow Through, Sch E and For Deductions Connor and Jordan Billings are married taxpayers. Connor works part-time in retail and Jordan works part-time at an elementary school. Their details are shown below: Date of Birth SSN Name Connor R. Billings Jordan M. Billings Tax Return Project Part 6: For AGI Deductions Taxpayer Connor Jordan 06/01/1956 05/24/1964 The couple's W-2s include the following information: Wages 23,100 21,200 Connor 123-45-6789 987-65-4321 Social Security Benefits Received 18,000 Connor retired last year and received social security benefits this year. His 1099-SA includes the following information: Taxpayer Federal Withholdings State Withholdings 1,050 950 2,100 2,050 Connor sold the following stock this year: Security Date Acquired ALBT 6/7/2006 BNR 1/4/2008 CXY 2/2/2023 Occupation Retail Sales Teacher's Aide Connor and Jordan received 12 payments of $6500 this year from an annuity they purchased several years ago. Payments began when Connor turned 65. The annuity cost $200,000. When Connor dies, Jordan will receive the same monthly payment until Jordan's death. Use the simplified method to calculate taxability of the annuity payments received. Jordan enjoys buying lottery tickets this year. This year, Jordan spent about $50 total on scratch- off tickets but managed to win $12,000! Cost $22,000 $2,000 $1,400 Date Sold 3/4/2023 3/4/2023 3/4/2023 Proceeds $31,000 $250 $2,200 Connor and Jordan recently moved to a smaller home. They kept their previous residence as a rental property. The following expenses were incurred this year: Rents received Property Taxes Property Insurance Landscaping Maintenance Service Property Management Service Depreciation $18,000 4,300 1,200 600 1,200 3,500 Jordan is a limited partner in the Mt Hood Cascades Adventures partnership. Jordan's K-1 showed a $3,000 ordinary loss and $1,200 long-term capital loss. Connor and Jordan both contribute the maximum deductible amount allowed to their IRA accounts. Neither taxpayer is eligible for an employer-sponsored plan. The couple also contributes the maximum amount allowed to their Health Savings Account. Jordan spent $475 this year on supplies for the third-grade classroom to which she is assigned at work. Complete the Form 1040 worksheet in Google Sheets for Connor and Jordan. Do not use tax software. Submit the Google Sheets/nSee Answer
  • Q2: Group Tax Return Project Week 10: Business Activity Connor and Jordan Billings are married taxpayers. Connor works part-time in retail and Jordan works part-time at an elementary school. Their details are shown below: Name Connor R. Billings Jordan M. Billings Date of Birth 06/01/1956 05/24/1964 SSN 123-45-6789 987-65-4321 The couple's W-2s include the following information: Taxpayer Connor Jordan Wages 23,100 21,200 Occupation Retail Sales Teacher's Aide Federal Withholdings State Withholdings 2,100 1,050 2,050 950 Connor retired last year and received social security benefits this year. His 1099-SA includes the following information: Taxpayer Connor Social Security Benefits Received 18,000 Connor and Jordan received 12 payments of $6500 this year from an annuity they purchased several years ago. Payments began when Connor turned 65. The annuity cost $200,000. When Connor dies, Jordan will receive the same monthly payment until Jordan's death. Use the simplified method to calculate taxability of the annuity payments received. Jordan enjoys buying lottery tickets this year. This year, Jordan spent about $50 total on scratch- off tickets but managed to win $12,000! Connor sold the following stock this year: Security ALBT BNR CXY Date Acquired 6/7/2006 1/4/2008 2/2/2023 Cost $22,000 $2,000 Date Sold Proceeds 3/4/2023 $31,000 3/4/2023 $250 $1,400 3/4/2023 $2,200 Connor and Jordan recently moved to a smaller home. They kept their previous residence as a rental property. The following expenses were incurred this year: Rents received Property Taxes Property Insurance Landscaping Maintenance Service Property Management Service Depreciation $18,000 4,300 1,200 600 1,200 3,500 Jordan is a limited partner in the Mt Hood Cascades Adventures partnership. Jordan's K-1 showed a $3,000 ordinary loss and $1,200 long-term capital loss. Connor and Jordan both contribute the maximum deductible amount allowed to their IRA accounts. Neither taxpayer is eligible for an employer-sponsored plan. The couple also contributes the maximum amount allowed to their Health Savings Account. Jordan spent $475 this year on supplies for the third-grade classroom to which she is assigned at work. Connor and Jordan's Form 1098 from their mortgage lender shows the following information: Mortgage Interest Paid Property Taxes Paid $12,000 $5,200 In addition, Connor and Jordan paid the following medical expenses during the year: Physician Office Visits Dental Office Visits Hospitalization Hearing Aids Glasses Dentures Prescriptions Medicare Premiums Paid $600 $400 $2,500 $1,200 $840 $2,000 $6,200 $2,100 They used their Health Savings Account to pay for $7,200 of these expenses, but the rest were unreimbursed. Connor and Jordan also made the following charitable contributions during the year: Cash donation to United Way $1,200 Cash donation to Jordan's school fundraiser Cash donation to Humane Society $500 $600 Old car to Humane Society FMV $2,200 Miscellaneous Household Items to Goodwill $600 (estimated thrift value; Connor has a list) Jordan's grandson, Carter, began living with the couple in April 2023. They provide all of his support. Carter's birthday is 3/14/2015. His social security number is 111-22-3333. The couple replaced all of the windows in their new home this year. They qualify as energy efficient improvements. The windows cost $8,500. They also purchased a new 2023 Chrysler Pacifica Hybrid for $48,500. The couple decided to start a side business this year. J&C adventures plans trips for families visiting the Portland area. Their expenses are as follows: Income/Expense Amount Subscription Fees $2,000 Planning fees $1,200 Advertising costs $600 Chamber of Commerce dues $200 Meals with customers when $2,200 they arrive in town Annual passes to area attractions $800 Notes Families subscribe to their substack Facebook ads They meet their customers at a restaurant upon arrival. They research the local attractions regularly to update the substack and provide the best advice to their clients J&C Adventures operates in the guest room of their home. The home is 2,000 sq. ft. and the guest room is 100 sq. ft. They do not maintain separate utilities for the business, but the home utilities totaled $2,600 this year. They also paid property insurance of $1,500 this year on their home. They also use their personal vehicle for research and welcome meals. They drove a total of 18,000 miles this year and 6,000 were business purpose. They started the business in July. Their automobile expenditures are as follows: Fuel Oil Changes and Tire Rotations Interest on the Pacifica loan Insurance Tag and License Fees 2,600 400 1,000 800 325 Complete the Form 1040 worksheet in Google Sheets for Connor and Jordan. Do not use tax software. Submit the Google Sheets file to Canvas with your group number at the end of the file name. Only one member of your group is required to submit the document because it is set up as a group assignment. You do not need to fill out a form 4562. Assume the amount provided for depreciation is correct and use it where necessary./nSee Answer
  • Q3:Question 2. Sifan has asked your firm to provide advice to her husband, Marc, as a favour to her, and you have scheduled a meeting with them both. Marc makes hand crafted birthday cards, wedding invitations and other craft-based products. He has decided to start charging for his products as they have featured and been "liked" on various social media sites. Marc shared these likes with his friends who also passed this on to other potential clients. Marc is concerned as to whether he would be liable to income tax on the money he generates from selling his products. In 2023/24 he was paid £270 by a friend to produce 100 wedding invitations and £1,050 by another friend for 200 hands crafted invitations for her birthday. He estimates his tax allowable expenses at for 2023/24 at £350. Requirement a) Explain whether your firm can provide advice to both Sifan and Marc and any measures that should be put in place by your firm to manage any issues that you identify. (8 marks) b) Explain, with reference to the facts provided by Marc, the factors that will be used to determine whether the income he generates from selling his craft products amount to trading and thus subject to income tax. (12 marks)See Answer
  • Q4: $1040 Filing Status Check only one box. Department of the Treasury-Internal Revenue Service U.S. Individual Income Tax Return Single Married filing jointly 2022 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Married filing separately (MFS) Head of household (HOH) Qualifying surviving spouse (QSS) If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child's name if the qualifying person is a child but not your dependent: Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initial Last name Home address (number and street). If you have a P.O. box, see instructions. Apt. no. City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code Spouse's social security number Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change Foreign country name Foreign province/state/county Foreign postal code your tax or refund. You Spouse Digital Assets Standard Deduction Age/Blindness You: At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) Someone can claim: You as a dependent Your spouse as a dependent Spouse itemizes on a separate return or you were a dual-status alien Yes No Were born before January 2, 1958 Are blind Spouse: Dependents (see instructions): (2) Social security number (1) First name Last name to you Was born before January 2, 1958 Is blind (3) Relationship (4) Check the box if qualifies for (see instructions): Child tax credit Credit for other dependents If more than four dependents, see instructions and check here Income 1a Total amount from Form(s) W-2, box 1 (see instructions) 1a b Attach Form(s) с Tip income not reported on line 1a (see instructions) W-2 here. Also attach Forms d W-2G and e 1099-R if tax f was withheld. Household employee wages not reported on Form(s) W-2. Medicaid waiver payments not reported on Form(s) W-2 (see instructions) Taxable dependent care benefits from Form 2441, line 26 Employer-provided adoption benefits from Form 8839, line 29 1b 1c 1d 1e 1f If you did not g Wages from Form 8919, line 6 1g get a Form h Other earned income (see instructions) 1h W-2, see ¡ Nontaxable combat pay election (see instructions) 1i instructions. Z Add lines 1a through 1h 1z Attach Sch. B 2a Tax-exempt interest if required. За Qualified dividends 4a IRA distributions Standard 5a Pensions and annuities Deduction for- 6a Social security benefits 2a За 4a 5a 6a b Taxable interest 2b b Ordinary dividends 3b b Taxable amount. 4b b Taxable amount. 5b b Taxable amount. 6b • Single or Married filing C separately, 7 $12,950 If you elect to use the lump-sum election method, check here (see instructions) Capital gain or (loss). Attach Schedule D if required. If not required, check here ☐ ☐ · • Married filing 8 Other income from Schedule 1, line 10 jointly or Qualifying 9 surviving spouse, 10 $25,900 Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income Adjustments to income from Schedule 1, line 26 780 • Head of household, $19,400 11 Subtract line 10 from line 9. This is your adjusted gross income 12 • If you checked 13 any box under Standard 14 Standard deduction or itemized deductions (from Schedule A) Qualified business income deduction from Form 8995 or Form 8995-A Add lines 12 and 13 Deduction, 15 see instructions. Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. 9 10 11 12 13 14 15 Cat. No. 11320B Form 1040 (2022) Form 1040 (2022) Page 2 Tax and 16 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 3 16 Credits 17 Amount from Schedule 2, line 3 18 Add lines 16 and 17 . 19 20 Child tax credit or credit for other dependents from Schedule 8812 Amount from Schedule 3, line 8 21 Add lines 19 and 20 22 Subtract line 21 from line 18. If zero or less, enter -0- 23 Other taxes, including self-employment tax, from Schedule 2, line 21 24 Add lines 22 and 23. This is your total tax 17 18 19 20 21 22 23 24 67 Payments 25 Federal income tax withheld from: a Form(s) W-2 25a b Form(s) 1099 25b с Other forms (see instructions) 25c d Add lines 25a through 25c 25d 26 2022 estimated tax payments and amount applied from 2021 return 26 If you have a qualifying child, 27 Earned income credit (EIC). 27 attach Sch. EIC. 28 Additional child tax credit from Schedule 8812 28 29 American opportunity credit from Form 8863, line 8. 29 30 Reserved for future use. 30 31 Amount from Schedule 3, line 15 31 32 33 Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits Add lines 25d, 26, and 32. These are your total payments 32 33 Refund 34 35a If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid Amount of line 34 you want refunded to you. If Form 8888 is attached, check here 34 35a Direct deposit? b Routing number c Type: ☐ Checking Savings See instructions. d Account number 36 Amount of line 34 you want applied to your 2023 estimated tax. 36 Amount 37 Subtract line 33 from line 24. This is the amount you owe. You Owe 38 For details on how to pay, go to www.irs.gov/Payments or see instructions Estimated tax penalty (see instructions) 37 38 Third Party Designee Do you want to allow another person to discuss this return with the IRS? See instructions Designee's name Phone no. Yes. Complete below. Personal identification number (PIN) No Sign Here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) Your occupation Phone no. Preparer's name Email address Preparer's signature Paid Preparer Use Only Firm's name Firm's address Go to www.irs.gov/Form 1040 for instructions and the latest information. Date PTIN Check if: Self-employed Phone no. Firm's EIN Form 1040 (2022)/nThis assignment requires you to complete four tax forms (Form 1040, Schedule 1, Schedule B, and Qualified Dividends and Capital Gain Tax Worksheet, using the provided taxpayer information. The forms provided are for tax year 2022 (please disregard 2021 date on W2, 1099-INT, and 1099-DIV). • Step 1: Read the information below and download the taxpayer information based on the last two digits of your REDid: ⚫ REDid ending in 00-19: Form W-2 1099-INT ✓ 1099-DIV✓ ⚫ REDid ending in 20-39: Form W-2 ↓ 1099-INT ✓ 1099-DIV↓ 1099-INT ✓ 1099-DIV✓ 1099-DIV↓ ⚫ REDid ending in 40-59: Form W-2 ⚫ REDid ending in 60-79: Form W-2 ⚫ REDid ending in 80-99: Form W-2 1099-INT 1099-INT ✓1099-DIV↓ Step 2: Download the blank forms on which to complete the assignment Blank Form 1040 • Blank Form 1040 ⚫ Blank Schedule 1 (fillable) (fillable) (fillable) ⚫ Blank Schedule B ⚫ Blank Qualified Dividends and Capital Gain Tax Worksheet ✓ (not fillable - complete by hand and upload image) • Step 3: Complete Schedule B first, then Schedule 1, then Form 1040 down through Line 15. Then complete the Qual Div worksheet and use that information to complete the rest of the Form 1040 Step 4: Submit all 4 documents to complete the assignment. Alexander Smith and his wife Allison are married and will file a joint tax return for 2022. The Smiths live at 1234 Buena Vista Drive, Orlando, FL 32830. Alexander is a commuter airline pilot but took 6 months off from his job in 2022 to obtain a higher-level pilot's license. The Smiths have an 18-year-old son, Brad, who is enrolled in twelfth grade at the Walt Disney Prep School. The Smiths also have a 19-year-old daughter, Angelina, who is a part-time first-year student at Orange County Community College (OCCC). Angelina is married to Sean Shirker, who is 19 years old and also a part-time student at OCCC. Sean and Angelina have a 1-year-old child, Trask (Social Security number 115-45-7893). All the Shirkers live in an apartment near the Smiths. Angelina and Sean both also work part- time for Sean's wealthy grandfather as apprentices in his business. The Shirker's wages for the year were $50,000 which allowed them to pay all the personal expenses for themselves and Trask. Name Social Security number Alexander Smith 266-15-1966 Allison Smith 266-34-1967 Brad Smith 261-55-2121 Angelina Shirker 261-45-1212 Sean Shirker 546-78-1235 Trask Shirker 115-45-7893 Date of birth 09/22/1970 07/01/1971 12/21/2005 03/31/2004 05/01/2004 10/21/2021 Five years ago, Alexander divorced Jennifer Amistad (Social Security number 341-55-6789). Alexander pays Jennifer $200 per month in alimony under the divorce decree. Not included with the Smith's tax forms was interest from State of Florida bonds of $145.00. Alexander also received a Form W-2, Form 1099-INT, and Form 1099-DIV that you should have downloaded in Step 1 above./n IRS TAX YEAR 2022 1040 and 1040-SR TAX AND EARNED INCOME CREDIT TABLES NOTE: THIS BOOKLET DOES NOT 240 CONTAIN ANY TAX FORMS. 480 INTEMPS 200 220 .081 140 160 S.W S OZI N S 300 MN N.E 320 340 07 FR This booklet only contains Tax and Earned Income Credit Tables from the Instructions for Form 1040 (and 1040-SR). freefile Sep 27, 2022 FreeFile is the fast, safe, and free way to prepare and e-file your taxes. See IRS.gov/FreeFile. Pay Online. It's fast, simple, and secure. Go to IRS.gov/Payments. Department of the Treasury Internal Revenue Service www.irs.gov Cat. No. 24327A Table of Contents Contents Department of the Treasury 2022 Tax Table Internal Revenue Service Page Contents 3 2022 EIC Table Page 16 -2- 2022 Tax Table If line 15 (taxable income) is- CAUTION See the instructions for line 16 to see if you must use the Tax Table below to figure your tax. Sample Table At But Least Less Than Single Married Married Head filing filing jointly* sepa- of a house- hold Example. A married couple are filing a joint return. Their taxable income on Form 1040, line 15, is $25,300. First, they find the $25,300-25,350 taxable income line. Next, they find the column for married filing jointly and read down the column. The amount shown where the taxable income line and filing status column meet is $2,628. This is the tax amount they should enter in the entry space on Form 1040, line 16. rately Your tax is- 2,616 2,822 2,734 2,622 2,828 2,740 2,628 2,834 2,746 25,200 25,250 2,822 25,250 25,300 2,828 25,300 25,350 2,834 25,350 25,400 2,840 2,634 2,840 2,752 And you are― If line 15 (taxable income) is― And you are- If line 15 (taxable income) is― And you are― At But Single Married least less filing Married filing Head of a At But Single Married least less filing Married filing Head of a At But least less Single Married Married Head of than jointly* sepa- rately house- hold than jointly sepa- rately house- hold than filing filing jointly sepa- a rately house- hold Your tax is- Your tax is- Your tax is- 0 5 5 15 15 25 25 50 50 75 75 100 100 125 11 125 150 14 150 175 175 200 91160 16 19 200 225 21 21 225 250 24 250 275 275 300 29 300 325 31 325 350 350 375 375 400 39 400 425 425 450 450 475 475 500 500 525 525 550 550 575 575 600 600 625 625 650 650 675 675 700 700 725 725 750 750 775 775 800 800 825 825 850 850 875 875 900 900 925 925 950 950 975 975 1,000 22 347 47556 6616% FORT - 23 26 31 34 36 41 41 44 49 51 59 64 69 71 74 76 79 81 84 86 89 91 94 96 99 01246 01246 01246 2-160 22225 £2847 4756 2616S FEOR 8 01246 1,000 2,000 1,000 1,025 101 101 101 101 1,025 1,050 104 104 104 9 11 14 16 19 24 24 26 29 34 36 36 39 44 44 49 51 51 59 64 69 71 74 76 79 81 84 86 89 91 94 96 99 P1100 22225 74 47546 26482 FORE 22255 22 9 1,050 1,075 106 106 106 106 11 1,075 1,100 109 109 109 109 26 34 86 96 1225 $377 47546 280 FIORE 225 22 14 1,100 1,125 111 111 16 19 1,125 1,150 114 114 1,150 1,175 116 116 1,175 1,200 119 119 24 1,200 1,225 121 121 26 1,225 1,250 124 124 29 1,250 1,275 126 126 31 1,275 1,300 129 129 34 1,300 1,325 131 131 36 1,325 1,350 134 39 1,350 1,375 136 41 1,375 1,400 139 139 44 1,400 1,425 141 141 1,425 1,450 144 144 1,450 1,475 146 146 49 1,475 1,500 149 149 51 1,500 1,525 151 151 1,525 1,550 154 1,550 1,575 156 156 59 1,575 1,600 159 159 61 1,600 1,625 161 161 64 66 1,625 1,650 164 69 1,650 1,675 166 1,675 1,700 169 71 1,700 1,725 171 171 74 1,725 1,750 174 76 79 1,750 1,775 176 E ON 2257 7747 66666 66877 P 111 111 114 114 116 116 119 119 121 121 124 124 126 126 129 129 131 131 134 134 136 136 139 139 141 141 144 146 149 151 151 154 154 156 159 161 164 164 166 169 169 171 174 174 176 176 C 2257 87747 66666 68877 F 2,000 2,025 201 201 201 201 104 2,025 2,050 204 204 204 204 2,050 2,075 206 206 206 206 2,075 2,100 209 209 209 209 2,100 2,125 211 211 211 211 2,125 2,150 214 214 214 214 2,150 2,175 216 216 216 216 2,175 2,200 219 219 219 219 2,200 2,225 221 221 221 221 2,225 2,250 224 224 224 224 2,250 2,275 226 226 226 226 2,275 2,300 229 229 229 229 2,300 2,325 231 231 231 231 134 2,325 2,350 234 234 234 234 136 2,350 2,375 236 236 236 236 2,375 2,400 239 239 239 239 2,400 2,425 241 241 241 241 144 2,425 2,450 244 244 244 244 146 2,450 2,475 246 246 246 246 149 2,475 2,500 249 249 249 249 2,500 2,525 251 251 251 251 154 2,525 2,550 254 254 254 254 156 2,550 2,575 256 256 256 256 159 2,575 2,600 259 259 259 259 161 2,600 2,625 261 261 261 261 164 2,625 2,650 264 264 264 264 166 2,650 2,675 266 266 266 266 169 2,675 2,700 269 269 269 269 171 2,700 2,725 271 271 271 271 174 2,725 2,750 274 274 274 274 176 2,750 2,775 276 276 276 276 81 1,775 1,800 179 179 179 179 2,775 2,800 279 279 279 279 1,800 1,825 181 181 181 181 2,800 2,825 281 281 281 281 84 1,825 1,850 184 184 184 184 2,825 2,850 284 284 284 284 86 1,850 1,875 186 186 186 186 2,850 2,875 286 286 286 286 89 91 1,875 1,900 189 189 189 189 2,875 2,900 289 289 289 289 94 1,900 1,925 191 191 191 191 2,900 2,925 291 291 291 291 1,925 1,950 194 194 194 194 2,925 2,950 294 294 294 294 96 1,950 1,975 196 196 196 196 2,950 2,975 296 296 296 296 99 1,975 2,000 199 199 199 199 2,975 3,000 299 299 299 299 * This column must also be used by a qualifying surviving spouse. -3- (Continued) 2022 Tax Table If line 15 (taxable income) is― And you are― If line 15 (taxable And you are― income) is― If line 15 (taxable income) is― At But Single least less than Married filing jointly Married filing Head of a At But Single Married least less filing Married filing * sepa- rately house- hold than jointly * sepa- Head of a house- At But Single least less than rately hold Your tax is- Your tax is- - Continued And you are― Married Married filing filing * jointly sepa- Head of a rately house- hold Your tax is- 3,000 6,000 9,000 3,000 3,050 303 303 303 303 6,000 6,050 603 603 603 603 9,000 9,050 903 903 903 903 3,050 3,100 308 308 308 308 6,050 6,100 608 608 608 608 9,050 9,100 908 908 908 908 3,100 3,150 313 313 313 313 6,100 6,150 613 613 613 613 9,100 9,150 913 913 913 913 3,150 3,200 318 318 318 318 6,150 6,200 618 618 618 618 9,150 9,200 918 918 918 918 3,200 3,250 323 323 323 323 6,200 6,250 623 623 623 623 9,200 9,250 923 923 923 923 3,250 3,300 328 328 328 328 6,250 6,300 628 628 628 628 9,250 9,300 928 928 928 928 3,300 3,350 333 333 333 333 6,300 6,350 633 633 633 633 9,300 9,350 933 933 933 933 3,350 3,400 338 338 338 338 6,350 6,400 638 638 638 638 9,350 9,400 938 938 938 938 3,400 3,450 343 343 343 343 6,400 6,450 643 643 643 643 9,400 9,450 943 943 943 943 3,450 3,500 348 348 348 348 6,450 6,500 648 648 648 648 9,450 9,500 948 948 948 948 3,500 3,550 353 353 353 353 6,500 6,550 653 653 653 653 9,500 9,550 953 953 953 953 3,550 3,600 358 358 358 358 6,550 6,600 658 658 658 658 9,550 9,600 958 958 958 958 3,600 3,650 363 363 363 363 6,600 6,650 663 663 663 663 9,600 9,650 963 963 963 963 3,650 3,700 368 368 368 368 6,650 6,700 668 668 668 668 9,650 9,700 968 968 968 968 3,700 3,750 373 373 373 373 6,700 6,750 673 673 673 673 9,700 9,750 973 973 973 973 3,750 3,800 378 378 378 378 6,750 6,800 678 678 678 678 9,750 9,800 978 978 978 978 3,800 3,850 383 383 383 383 6,800 6,850 683 683 683 683 9,800 9,850 983 983 983 983 3,850 3,900 388 388 388 388 6,850 6,900 688 688 688 688 9,850 9,900 988 988 988 988 3,900 3,950 393 393 393 393 6,900 6,950 693 693 693 693 9,900 9,950 993 993 993 993 3,950 4,000 398 398 398 398 6,950 7,000 698 698 698 698 9,950 10,000 998 998 998 998 4,000 7,000 10,000 4,000 4,050 403 403 403 403 7,000 7,050 703 703 703 703 10,000 10,050 1,003 1,003 1,003 1,003 4,050 4,100 408 408 408 408 7,050 7,100 708 708 708 708 10,050 10,100 1,008 1,008 1,008 1,008 4,100 4,150 413 413 413 413 7,100 7,150 713 713 713 713 10,100 10,150 1,013 1,013 1,013 1,013 4,150 4,200 418 418 418 418 7,150 7,200 718 718 718 718 10,150 10,200 1,018 1,018 1,018 1,018 4,200 4,250 423 423 423 423 7,200 7,250 723 723 723 723 10,200 10,250 1,023 1,023 1,023 1,023 4,250 4,300 428 428 428 428 7,250 7,300 728 728 728 728 10,250 10,300 1,028 1,028 1,028 1,028 4,300 4,350 433 433 433 433 7,300 7,350 733 733 733 733 10,300 10,350 1,034 1,033 1,034 1,033 4,350 4,400 438 438 438 438 7,350 7,400 738 738 738 738 10,350 10,400 1,040 1,038 1,040 1,038 4,400 4,450 443 443 443 443 7,400 7,450 743 743 743 743 10,400 10,450 1,046 1,043 1,046 1,043 4,450 4,500 448 448 448 448 7,450 7,500 748 748 748 748 10,450 10,500 1,052 1,048 1,052 1,048 4,500 4,550 453 453 453 453 7,500 7,550 753 753 753 753 10,500 10,550 1,058 1,053 1,058 1,053 4,550 4,600 458 458 458 458 7,550 7,600 758 758 758 758 10,550 10,600 1,064 1,058 1,064 1,058 4,600 4,650 463 463 463 463 7,600 7,650 763 763 763 763 10,600 10,650 1,070 1,063 1,070 1,063 4,650 4,700 468 468 468 468 7,650 7,700 768 768 768 768 10,650 10,700 1,076 1,068 1,076 1,068 4,700 4,750 473 473 473 473 7,700 7,750 773 773 773 773 10,700 10,750 1,082 1,073 1,082 1,073 4,750 4,800 478 478 478 478 7,750 7,800 778 778 778 778 10,750 10,800 1,088 1,078 1,088 1,078 4,800 4,850 483 483 483 483 7,800 7,850 783 783 783 783 10,800 10,850 1,094 1,083 1,094 1,083 4,850 4,900 488 488 488 488 7,850 7,900 788 788 788 788 10,850 10,900 1,100 1,088 1,100 1,088 4,900 4,950 493 493 493 493 7,900 7,950 793 793 793 793 10,900 10,950 1,106 1,093 1,106 1,093 4,950 5,000 498 498 498 498 7,950 8,000 798 798 798 798 10,950 11,000 1,112 1,098 1,112 1,098 5,000 8,000 11,000 5,000 5,050 503 503 503 503 8,000 8,050 803 803 803 803 11,000 11,050 1,118 1,103 1,118 1,103 5,050 5,100 508 508 508 508 8,050 8,100 808 808 808 808 11,050 11,100 1,124 1,108 1,124 1,108 5,100 5,150 513 513 513 513 8,100 8,150 813 813 813 813 11,100 11,150 1,130 1,113 1,130 1,113 5,150 5,200 518 518 518 518 8,150 8,200 818 818 818 818 11,150 11,200 1,136 1,118 1,136 1,118 5,200 5,250 523 523 523 523 8,200 8,250 823 823 823 823 11,200 11,250 1,142 1,123 1,142 1,123 5,250 5,300 528 528 528 528 8,250 8,300 828 828 828 828 11,250 11,300 1,148 1,128 1,148 1,128 5,300 5,350 533 533 533 533 8,300 8,350 833 833 833 833 11,300 11,350 1,154 1,133 1,154 1,133 5,350 5,400 538 538 538 538 8,350 8,400 838 838 838 838 11,350 11,400 1,160 1,138 1,160 1,138 5,400 5,450 543 543 543 543 8,400 8,450 843 843 843 843 11,400 11,450 1,166 1,143 1,166 1,143 5,450 5,500 548 548 548 548 8,450 8,500 848 848 848 848 11,450 11,500 1,172 1,148 1,172 1,148 5,500 5,550 553 553 553 553 8,500 8,550 853 853 853 853 11,500 11,550 1,178 1,153 1,178 1,153 5,550 5,600 558 558 558 558 8,550 8,600 858 858 858 858 11,550 11,600 1,184 1,158 1,184 1,158 5,600 5,650 563 563 563 563 8,600 8,650 863 863 863 863 11,600 11,650 1,190 1,163 1,190 1,163 5,650 5,700 568 568 568 568 8,650 8,700 868 868 868 868 11,650 11,700 1,196 1,168 1,196 1,168 5,700 5,750 573 573 573 573 8,700 8,750 873 873 873 873 11,700 11,750 1,202 1,173 1,202 1,173 5,750 5,800 578 578 578 578 8,750 8,800 878 878 878 878 11,750 11,800 1,208 1,178 1,208 1,178 5,800 5,850 583 583 583 583 8,800 8,850 883 883 883 883 11,800 11,850 1,214 1,183 1,214 1,183 5,850 5,900 588 588 588 588 8,850 8,900 888 888 888 888 11,850 11,900 1,220 1,188 1,220 1,188 5,900 5,950 6,000 5,950 593 593 593 593 8,900 8,950 893 893 893 893 11,900 11,950 1,226 1,193 1,226 1,193 598 598 598 598 8,950 9,000 898 898 898 898 11,950 12,000 1,232 1,198 1,232 1,198 (Continued) * This column must also be used by a qualifying surviving spouse. - 4- If line 15 (taxable income) is― At But Single least less than 12,000 2022 Tax Table - Continued And you are― If line 15 (taxable And you are― income) is― If line 15 (taxable income) is― And you are― Married filing Married filing Head of a At But Single Married least less filing Married filing Head of a At But Single jointly * sepa- house- than jointly * sepa- house- least less than Married Married filing filing Head of a * jointly sepa- rately hold rately hold rately house- hold Your tax is- Your tax is- Your tax is- 15,000 18,000 12,000 12,050 1,238 1,203 1,238 1,203 15,000 15,050 1,598 1,503 1,598 1,510 18,000 18,050 1,958 1,803 1,958 1,870 12,050 12,100 1,244 1,208 1,244 1,208 15,050 15,100 1,604 1,508 1,604 1,516 18,050 18,100 1,964 1,808 1,964 1,876 12,100 12,150 1,250 1,213 1,250 1,213 15,100 15,150 1,610 1,513 1,610 1,522 18,100 18,150 1,970 1,813 1,970 1,882 12,150 12,200 1,256 1,218 1,256 1,218 15,150 15,200 1,616 1,518 1,616 1,528 18,150 18,200 1,976 1,818 1,976 1,888 12,200 12,250 1,262 1,223 1,262 1,223 15,200 15,250 1,622 1,523 1,622 1,534 18,200 18,250 1,982 1,823 1,982 1,894 12,250 12,300 1,268 1,228 1,268 1,228 15,250 15,300 1,628 1,528 1,628 1,540 18,250 18,300 1,988 1,828 1,988 1,900 12,300 12,350 1,274 1,233 1.274 1,233 15,300 15,350 1,634 1,533 1,634 1,546 18,300 18,350 1,994 1,833 1,994 1,906 12,350 12,400 1,280 1,238 1,280 1,238 15,350 15,400 1,640 1,538 1,640 1,552 18,350 18,400 2,000 1,838 2,000 1,912 12,400 12,450 1,286 1,243 1,286 1,243 15,400 15,450 1,646 1,543 1,646 1,558 18,400 18,450 2,006 1,843 2,006 1,918 12,450 12,500 1,292 1,248 1,292 1,248 15,450 15,500 1,652 1,548 1,652 1,564 18,450 18,500 2,012 1,848 2,012 1,924 12,500 12,550 1,298 1,253 1,298 1,253 15,500 15,550 1,658 1,553 1,658 1,570 18,500 18,550 2,018 1,853 2,018 1,930 12,550 12,600 1,304 1,258 1,304 1,258 15,550 15,600 1,664 1,558 1,664 1,576 12,600 12,650 1,310 1,263 1,310 1,263 15,600 15,650 1,670 1,563 1,670 1,582 18,550 18,600 18,600 2,024 1,858 2,024 1,936 18,650 2,030 1,863 2,030 1,942 12,650 12,700 1,316 1,268 1,316 1,268 15,650 15,700 1,676 1,568 1,676 1,588 18,650 18,700 2,036 1,868 2,036 1,948 12,700 12,750 1,322 1,273 1,322 1,273 15,700 15,750 1,682 1,573 1,682 1,594 18,700 18,750 2,042 1,873 2,042 1,954 12,750 12,800 1,328 1,278 1,328 1,278 15,750 15,800 1,688 1,578 1,688 1,600 18,750 18,800 2,048 1,878 2,048 1,960 12,800 12,850 1,334 1,283 1,334 1,283 15,800 15,850 1,694 1,583 1,694 1,606 18,800 18,850 2,054 1,883 2,054 1,966 12,850 12,900 1,340 1,288 1,340 1,288 15,850 15,900 1,700 1,588 1,700 1,612 18,850 18,900 2,060 1,888 2,060 1,972 12,900 12,950 1,346 1,293 1,346 1,293 15,900 15,950 1,706 1,593 1,706 1,618 18,900 18,950 2,066 1,893 2,066 1,978 12,950 13,000 1,352 1,298 1,352 1,298 15,950 16,000 1,712 1,598 1,712 1,624 18,950 19,000 2,072 1,898 2,072 1,984 13,000 16,000 19,000 13,000 13,050 1,358 1,303 1,358 1,303 16,000 16,050 1,718 1,603 1,718 1,630 19,000 19,050 2,078 1,903 2,078 1,990 13,050 13,100 1,364 1,308 1,364 1,308 16,050 16,100 1,724 1,608 1,724 1,636 19,050 19,100 2,084 1,908 2,084 1,996 13,100 13,150 1,370 1,313 1,370 1,313 16,100 16,150 1,730 1,613 1,730 1,642 19,100 19,150 2,090 1,913 2,090 2,002 13,150 13,200 1,376 1,318 1,376 1,318 16,150 16,200 1,736 1,618 1,736 1,648 19,150 19,200 2,096 1,918 2,096 2,008 13,200 13,250 1,382 1,323 1,382 1,323 16,200 16,250 1,742 1,623 1,742 1,654 19,200 19,250 2,102 1,923 2,102 2,014 13,250 13,300 1,388 1,328 1,388 1,328 16,250 16,300 1,748 1,628 1,748 1,660 19,250 19,300 2,108 1,928 2,108 2,020 13,300 13,350 1,394 1,333 1,394 1,333 16,300 16,350 1,754 1,633 1,754 1,666 19,300 19,350 2,114 1,933 2,114 2,026 13,350 13,400 1,400 1,338 1,400 1,338 16,350 16,400 1,760 1,638 1,760 1,672 19,350 19,400 2,120 1,938 2,120 2,032 13,400 13,450 1,406 1,343 1,406 13,450 13,500 1,412 1,348 1,412 1,343 1,348 16,450 16,500 16,400 16,450 1,766 1,643 1,766 1,678 19,400 19,450 2,126 1,943 2,126 2,038 1,772 1,648 1,772 1,684 19,450 19,500 2,132 1,948 2,132 2,044 13,500 13,550 1,418 1,353 1,418 1,353 16,500 16,550 1,778 1,653 1,778 1,690 19,500 19,550 2,138 1,953 2,138 2,050 13,550 13,600 1,424 1,358 1,424 1,358 16,550 16,600 1,784 1,658 1,784 1,696 19,550 19,600 2,144 1,958 2,144 2,056 13,600 13,650 1,430 1,363 1,430 1,363 16,600 16,650 1,790 1,663 1,790 1,702 19,600 19,650 2,150 1,963 2,150 2,062 13,650 13,700 1,436 1,368 1,436 1,368 16,650 16,700 1,796 1,668 1,796 1,708 19,650 19,700 2,156 1,968 2,156 2,068 13,700 13,750 1,442 1,373 1,442 1,373 16,700 16,750 1,802 1,673 1,802 1,714 19,700 19,750 2,162 1,973 2,162 2,074 13,750 13,800 1,448 1,378 1,448 1,378 16,750 16,800 1,808 1,678 1,808 1,720 19,750 19,800 2,168 1,978 2,168 2,080 13,800 13,850 1,454 1,383 1,454 1,383 16,800 16,850 1,814 1,683 1,814 1,726 19,800 19,850 2,174 1,983 2,174 2,086 13,850 13,900 1,460 1,388 1,460 1,388 16,850 16,900 1,820 1,688 1,820 1,732 19,850 19,900 2,180 1,988 2,180 2,092 13,900 13,950 1,466 1,393 1,466 1,393 16,900 16,950 1,826 1,693 1,826 1,738 19,900 19,950 2,186 1,993 2,186 2,098 13,950 14,000 1,472 1,398 1,472 1,398 16,950 17,000 1,832 1,698 1,832 1,744 19,950 20,000 2,192 1,998 2,192 2,104 14,000 17,000 20,000 14,000 14,050 1,478 1,403 1,478 1,403 17,000 17,050 1,838 1,703 1,838 1,750 20,000 20,050 2,198 2,003 2,198 2,110 14,050 14,100 1,484 1,408 1,484 1,408 17,050 17,100 1,844 1,708 1,844 1,756 20,050 20,100 2,204 2,008 2,204 2,116 14,100 14,150 1,490 1,413 1,490 1,413 17,100 17,150 1,850 1,713 1,850 1,762 20,100 20,150 2,210 2,013 2,210 2,122 14,150 14,200 1,496 1,418 1,496 1,418 17,150 17,200 1,856 1,718 1,856 1,768 20,150 20,200 2,216 2,018 2,216 2,128 14,200 14,250 1,502 1,423 1,502 1,423 17,200 17,250 1,862 1,723 1,862 1,774 20,200 20,250 2,222 2,023 2,222 2,134 14,250 14,300 1,508 1,428 1,508 1,428 17,250 17,300 1,868 1,728 1,868 1,780 20,250 20,300 2,228 2,028 2,228 2,140 14,300 14,350 1,514 1,433 1,514 1,433 17,300 17,350 1,874 1,733 1,874 1,786 20,300 20,350 2,234 2,033 2,234 2,146 14,350 14,400 1,520 1,438 1,520 1,438 17,350 17,400 1,880 1,738 1,880 1,792 20,350 20,400 2,240 2,038 2,240 2,152 14,400 14,450 1,526 1,443 1,526 1,443 17,400 17,450 1,886 1,743 1,886 1,798 20,400 20,450 2,246 2,043 2,246 2,158 14,450 14,500 1,532 1,448 1,532 1,448 17,450 17,500 1,892 1,748 1,892 1,804 20,450 20,500 2,252 2,048 2,252 2,164 14,500 14,550 1,538 1,453 1,538 1,453 17,500 17,550 1,898 1,753 1,898 1,810 20,500 20,550 2,258 2,053 2,258 2,170 14,550 14,600 1,544 1,458 1,544 1,458 17,550 17,600 1,904 1,758 1,904 1,816 20,550 20,600 2,264 2,058 2,264 2,176 14,600 14,650 1,550 1,463 1,550 1,463 17,600 17,650 1,910 1,763 1,910 1,822 20,600 20,650 2,270 2,064 2,270 2,182 14,650 14,700 1,556 1,468 1,556 1,468 17,650 17,700 1,916 1,768 1,916 1,828 20,650 20,700 2,276 2,070 2,276 2,188 14,700 14,750 1,562 1,473 1,562 1,474 17,700 17,750 1,922 1,773 1,922 1,834 20,700 20,750 2,282 2,076 2,282 2,194 14,750 14,800 1,568 1,478 1,568 1,480 17,750 17,800 1,928 1,778 1,928 1,840 20,750 20,800 2,288 2,082 2,288 2,200 14,800 14,850 1,574 1,483 1,574 1,486 17,800 17,850 1,934 1,783 1,934 1,846 20,800 20,850 2,294 2,088 2,294 2,206 14,850 14,900 1,580 1,488 1,580 1,492 17,850 17,900 1,940 1,788 1,940 1,852 20,850 20,900 2,300 2,094 2,300 2,212 14,900 14,950 1,586 1,493 1,586 1,498 17,900 17,950 1,946 1,793 1,946 1,858 20,900 20,950 2,306 2,100 2,306 2,218 14,950 15,000 1,592 1,498 1,592 1,504 17,950 18,000 1,952 1,798 1,952 1,864 20,950 21,000 2,312 2,106 2,312 2,224 (Continued) * This column must also be used by a qualifying surviving spouse. - 5-See Answer
  • Q5:TOPIC: The impact of Digitalization on Audit Quality for the external auditors. Need to write in 2432 words, single spaced, master level writing.See Answer
  • Q6: Module 8 Graded Tax Return Problem Instructions Introduction This comprehensive problem serves two learning goals. By completing this activity, you will: (1) Demonstrate your ability to apply the tax knowledge you have gained during this course in order to determine a taxpayer's tax liability, and (2) Discover where items, which affect a taxpayer's tax liability, are reported on the tax return. Taxpayer's Facts Please read this file carefully as it includes components of income and expenses necessary to complete the tax return. You will need to determine which components affect the tax return and how much of each component, if any, should be reported on the tax return: Jared and Ashley have come to you for help filing their 2022 tax return. They are married on December 31, 2022 and are both age 40. They live with their three qualifying children, Nick, Betty, and Roger, who were 12, 14, and 17 years old, respectively, at the end of 2022. They have made the following requests: • They wish to file a joint tax return. • If they overpaid their taxes this year, they would like to receive half as a refund and have half applied to next year's federal tax return (hint: this is a commonly missed item on the quiz). Jared and Ashley have the following income items during 2022: • Jared's wages of $50,000 ●• Jared's unemployment compensation of $5,000 • Ashley's wages of $60,000 • Interest from a city of Chicago bond of $2,000 • Interest from a corporate bond of $3,000 • Ordinary dividends of $2,000 • Gift from Jared's father of a new computer that cost $3,000 • A $3,000 refund from the State of Illinois for income taxes paid in 2021 Jared and Ashley incurred the following expenses/losses during 2022: Contributions of $5,500 to each of Jared and Ashley's traditional IRAs, i.e., $11,000 total • (they are not covered by any other qualified retirement plans) • Qualified medical expenses of $9,000 • Personal credit card interest expense of $8,000 • Charitable contributions of $4,000 • Ten $25 parking tickets totaling $250 • Mortgage interest on primary residence of $8,000 (mortgage is $200,000) • Property taxes on the primary residence of $6,500 • Illinois state and local income taxes paid of $5,500 • Federal tax withholding on Jared and Ashley's W-2s of $10,000 They also provide you with the following information about their prior year return: • • On their prior year federal tax return, they claimed itemized deductions (itemized deductions exceeded the standard deduction by $5,000). And, they deducted all $9,800 of their state and local taxes on Schedule A (i.e., the SALT cap did not apply). Jared and Ashley elected to have $139 of their 2021 tax refund applied to 2022. Tax Rate Schedule & Form 1040 Instructions I have also included the 2022 tax rate schedule for married filing jointly and the instructions for Form 1040. And, in case you get stuck or need help getting started, I've included a "hint sheet" below that indicates all of the fields that you will need to complete (or at least consider completing) to finish this assignment. - Table 1 - section 1(j) (2) (A) – Married individuals filling joint returns and surviving spouses If taxable income is: Not over $20,550 Over $20,550 but not over $83,550 The tax is: 10% of the taxable income $2,055 plus 12% of the excess over $20,550 $9,615 plus 22% of the excess over $83,550 Over $83,550 but not over $178,150 Over $178,150 but not over $340,100 $30,427 plus 24% of the excess over $178,150 Over $340,100 but not over $431,900 $69,295 plus 32% of the excess over $340,100 Over $431,900 but not over $647,850 $98,671 plus 35% of the excess over $432,900 Over $647,850 $174,253.50 plus 37% of the excess over $647,850/n7. Question 7 What amount is reported on the Form 1040 line: amount you owe? Note: Enter whole numbers only. Do not enter a $ sign or a comma./n1. Question 1 What amount is reported on the Form 1040 line: federal income tax withheld from Forms W-2 and 1099? Note: Enter whole numbers only. Do not enter a $ sign or a comma. 2. Question 2 What amount is reported on the Form 1040, Schedule 5 line: estimated tax payments and amount applied from prior year return? Note: Enter whole numbers only. Do not enter a $ sign or a comma. 3. Question 3 What amount is reported on the Form 1040 line: total payments (Line 18)? Note: Enter whole numbers only. Do not enter a $ sign or a comma. 4. Question 4 What amount is reported on the Form 1040 line: amount you overpaid? Note: Enter whole numbers only. Do not enter a $ sign or a comma. 5. Question 5 What amount is reported on the Form 1040 line: Amount you want refunded to you? Note: Enter whole numbers only. Do not enter a $ sign or a comma. 6. Question 6 What amount is reported on the Form 1040 line: Amount you want applied to your next year's estimated tax? Note: Enter whole numbers only. Do not enter a $ sign or a comma.See Answer
  • Q7: Module 8 Graded Tax Return Problem Instructions Introduction This comprehensive problem serves two learning goals. By completing this activity, you will: (1) Demonstrate your ability to apply the tax knowledge you have gained during this course in order to determine a taxpayer's tax liability, and (2) Discover where items, which affect a taxpayer's tax liability, are reported on the tax return. Taxpayer's Facts Please read this file carefully as it includes components of income and expenses necessary to complete the tax return. You will need to determine which components affect the tax return and how much of each component, if any, should be reported on the tax return: Jared and Ashley have come to you for help filing their 2022 tax return. They are married on December 31, 2022 and are both age 40. They live with their three qualifying children, Nick, Betty, and Roger, who were 12, 14, and 17 years old, respectively, at the end of 2022. They have made the following requests: • They wish to file a joint tax return. • If they overpaid their taxes this year, they would like to receive half as a refund and have half applied to next year's federal tax return (hint: this is a commonly missed item on the quiz). Jared and Ashley have the following income items during 2022: • Jared's wages of $50,000 ●• Jared's unemployment compensation of $5,000 • Ashley's wages of $60,000 • Interest from a city of Chicago bond of $2,000 • Interest from a corporate bond of $3,000 • Ordinary dividends of $2,000 • Gift from Jared's father of a new computer that cost $3,000 • A $3,000 refund from the State of Illinois for income taxes paid in 2021 Jared and Ashley incurred the following expenses/losses during 2022: Contributions of $5,500 to each of Jared and Ashley's traditional IRAs, i.e., $11,000 total • (they are not covered by any other qualified retirement plans) • Qualified medical expenses of $9,000 • Personal credit card interest expense of $8,000 • Charitable contributions of $4,000 • Ten $25 parking tickets totaling $250 • Mortgage interest on primary residence of $8,000 (mortgage is $200,000) • Property taxes on the primary residence of $6,500 • Illinois state and local income taxes paid of $5,500 • Federal tax withholding on Jared and Ashley's W-2s of $10,000 They also provide you with the following information about their prior year return: • • On their prior year federal tax return, they claimed itemized deductions (itemized deductions exceeded the standard deduction by $5,000). And, they deducted all $9,800 of their state and local taxes on Schedule A (i.e., the SALT cap did not apply). Jared and Ashley elected to have $139 of their 2021 tax refund applied to 2022. Tax Rate Schedule & Form 1040 Instructions I have also included the 2022 tax rate schedule for married filing jointly and the instructions for Form 1040. And, in case you get stuck or need help getting started, I've included a "hint sheet" below that indicates all of the fields that you will need to complete (or at least consider completing) to finish this assignment. - Table 1 - section 1(j) (2) (A) – Married individuals filling joint returns and surviving spouses If taxable income is: Not over $20,550 Over $20,550 but not over $83,550 The tax is: 10% of the taxable income $2,055 plus 12% of the excess over $20,550 $9,615 plus 22% of the excess over $83,550 Over $83,550 but not over $178,150 Over $178,150 but not over $340,100 $30,427 plus 24% of the excess over $178,150 Over $340,100 but not over $431,900 $69,295 plus 32% of the excess over $340,100 Over $431,900 but not over $647,850 $98,671 plus 35% of the excess over $432,900 Over $647,850 $174,253.50 plus 37% of the excess over $647,850/n2. Question 2 How many children are eligible for the Child Tax Credit? The answer is 2 = correct 3. Question 3 How many children are eligible for the nonchild dependent credit? The answer is 1 = correct 4. Question 4 What amount is reported on the Form 1040 line: taxable income? Note: Enter whole numbers only. Do not enter a $ sign or a comma. 5. Question 5 What amount is reported on the Form 1040 line: tax? Note: Enter whole numbers only. Do not enter a $ sign or a comma. 6. Question 6 What amount is reported on the Form 1040 line: Child Tax Credit/Credit for Other Dependents? Note: Enter whole numbers only. Do not enter a $ sign or a comma. 7. Question 7 What amount is reported on Form 1040: total tax? Note: Enter whole numbers only. Do not enter a $ sign or a comma.See Answer
  • Q8:/nPart 2: Internal research memo and external client letter (7 points) 1. Internal research memo Complete appropriate research to compose a research memo appropriately answering the following question: o Research problem Joe is planning to attend a construction conference next year. Joe is a featured presenter at the conference, participating in a panel session. The event organizers provide complementary admission to the conference, meals, and lodging to presenters during the three-day event. Will this be taxable income to Joe? 2. External client letter Since this is a sole proprietorship, explain to the Keen's how the information from the internal research memo would impact their individual tax return. Grammar as well as professional presentation will be factored into your grade as well as content and ability to follow instructions and guidance. The research memo must be in proper form and should not exceed 1 page. Be sure to use and cite only primary authority in completing the memo. Reminder your citations should be as specific as possible (e.g. $291(a)(2)(i) not §291).See Answer
  • Q9:Topic - Assignment: Assume that you have just joined KPMG and are assigned to the upcoming fiscal 2023 (year ending December 31, 2023) integrated audit of Rivian. In order to get familiar with the entity, you are requested to read information about the client. At a minimum, your supervisor has asked you to read the most recent Annual Report on Form 10-K and (year ended December 31, 2023, which was filed on February 26, 2024, as well as other periodic (Qs/Ks, etc.) and/or event reports (8-Ks) on file as necessary including the 8-K/A that includes the Company's Fiscal year 2024 earnings release information filed on February 22, 2024. Based on the information you find in the Company's filings with the SEC, and/or any other resource you deem appropriate (such as industry information, news reports, company website, etc.) write a narrative for the planning section of the audit working papers for the 2024 fiscal year audit that discusses the following:/nThe name of the Company is Rivian Automotive Inc, (the "Company" or "Rivian"). Rivian exists to create products and services that help our planet transition to carbon neutral energy and transportation. Rivian designs, develops and manufactures category-defining electric vehicles and accessories and sells them directly to customers in the consumer and commercial markets. The Company has a 12/31 year-end. The Company became a publicly traded Company in November 2021 through an initial public offering of 176 million shares of Class A common stock at an offering price of $ 78 per share raising $ 13.5 billion of cash proceeds. For fiscal year 2022, the Company adopted SOX 404 for the first time and KPMG performed an integrated audit issuing audit opinions on both the effectiveness of internal controls and the financial statements. The financial statements for the December 31,2023 audit were issued on February 26, 2024 and are included in the Company's Annual Report on Form 10-K. Rivian's common stock trades on the Nasdaq Global Select Market under the symbol “RIVN”.See Answer
  • Q10: IRS TAX YEAR 2022 1040 and 1040-SR TAX AND EARNED INCOME CREDIT TABLES NOTE: THIS BOOKLET DOES NOT 240 CONTAIN ANY TAX FORMS. 480 INTEMPS 200 220 .081 140 160 S.W S OZI N S 300 MN N.E 320 340 07 FR This booklet only contains Tax and Earned Income Credit Tables from the Instructions for Form 1040 (and 1040-SR). freefile Sep 27, 2022 FreeFile is the fast, safe, and free way to prepare and e-file your taxes. See IRS.gov/FreeFile. Pay Online. It's fast, simple, and secure. Go to IRS.gov/Payments. Department of the Treasury Internal Revenue Service www.irs.gov Cat. No. 24327A Table of Contents Contents Department of the Treasury 2022 Tax Table Internal Revenue Service Page Contents 3 2022 EIC Table Page 16 -2- 2022 Tax Table If line 15 (taxable income) is- CAUTION See the instructions for line 16 to see if you must use the Tax Table below to figure your tax. Sample Table At But Least Less Than Single Married Married Head filing filing jointly* sepa- of a house- hold Example. A married couple are filing a joint return. Their taxable income on Form 1040, line 15, is $25,300. First, they find the $25,300-25,350 taxable income line. Next, they find the column for married filing jointly and read down the column. The amount shown where the taxable income line and filing status column meet is $2,628. This is the tax amount they should enter in the entry space on Form 1040, line 16. rately Your tax is- 2,616 2,822 2,734 2,622 2,828 2,740 2,628 2,834 2,746 25,200 25,250 2,822 25,250 25,300 2,828 25,300 25,350 2,834 25,350 25,400 2,840 2,634 2,840 2,752 And you are― If line 15 (taxable income) is― And you are- If line 15 (taxable income) is― And you are― At But Single Married least less filing Married filing Head of a than jointly* sepa- rately house- hold At least less than But Single Married filing jointly sepa- Married filing rately Head of a house- hold At But least less Single Married Married Head of than filing filing jointly sepa- a rately house- hold Your tax is- Your tax is- Your tax is- 0 5 5 15 15 25 25 50 50 75 75 100 100 125 11 125 150 14 150 175 175 200 91160 16 19 200 225 21 21 225 250 24 250 275 275 300 29 300 325 31 325 350 350 375 375 400 39 400 425 425 450 450 475 475 500 500 525 525 550 550 575 575 600 600 625 625 650 650 675 675 700 700 725 725 750 750 775 775 800 800 825 825 850 850 875 875 900 900 925 925 950 950 975 975 1,000 22 347 47556 6616% FORT - 23 26 31 34 36 41 41 44 49 51 59 64 69 71 74 76 79 81 84 86 89 91 94 96 99 01246 01246 01246 2-160 22225 £2847 4756 2616S FEOR 8 01246 1,000 2,000 1,000 1,025 101 101 101 101 1,025 1,050 104 104 104 9 11 14 16 19 24 24 26 29 34 36 36 39 44 44 49 51 51 59 64 69 71 74 76 79 81 84 86 89 91 94 96 99 P1100 22225 74 47546 26482 FORE 22255 22 9 1,050 1,075 106 106 106 106 11 1,075 1,100 109 109 109 109 26 34 86 96 1225 $377 47546 280 FIORE 225 22 14 1,100 1,125 111 111 16 19 1,125 1,150 114 114 1,150 1,175 116 116 1,175 1,200 119 119 24 1,200 1,225 121 121 26 1,225 1,250 124 124 29 1,250 1,275 126 126 31 1,275 1,300 129 129 34 1,300 1,325 131 131 36 1,325 1,350 134 39 1,350 1,375 136 41 1,375 1,400 139 139 44 1,400 1,425 141 141 1,425 1,450 144 144 1,450 1,475 146 146 49 1,475 1,500 149 149 51 1,500 1,525 151 151 1,525 1,550 154 1,550 1,575 156 156 59 1,575 1,600 159 159 61 1,600 1,625 161 161 64 66 1,625 1,650 164 69 1,650 1,675 166 1,675 1,700 169 71 1,700 1,725 171 171 74 1,725 1,750 174 76 79 1,750 1,775 176 E ON 2257 7747 66666 66877 P 111 111 114 114 116 116 119 119 121 121 124 124 126 126 129 129 131 131 134 134 136 136 139 139 141 141 144 146 149 151 151 154 154 156 159 161 164 164 166 169 169 171 174 174 176 176 C 2257 87747 66666 68877 F 2,000 2,025 201 201 201 201 104 2,025 2,050 204 204 204 204 2,050 2,075 206 206 206 206 2,075 2,100 209 209 209 209 2,100 2,125 211 211 211 211 2,125 2,150 214 214 214 214 2,150 2,175 216 216 216 216 2,175 2,200 219 219 219 219 2,200 2,225 221 221 221 221 2,225 2,250 224 224 224 224 2,250 2,275 226 226 226 226 2,275 2,300 229 229 229 229 2,300 2,325 231 231 231 231 134 2,325 2,350 234 234 234 234 136 2,350 2,375 236 236 236 236 2,375 2,400 239 239 239 239 2,400 2,425 241 241 241 241 144 2,425 2,450 244 244 244 244 146 2,450 2,475 246 246 246 246 149 2,475 2,500 249 249 249 249 2,500 2,525 251 251 251 251 154 2,525 2,550 254 254 254 254 156 2,550 2,575 256 256 256 256 159 2,575 2,600 259 259 259 259 161 2,600 2,625 261 261 261 261 164 2,625 2,650 264 264 264 264 166 2,650 2,675 266 266 266 266 169 2,675 2,700 269 269 269 269 171 2,700 2,725 271 271 271 271 174 2,725 2,750 274 274 274 274 176 2,750 2,775 276 276 276 276 81 1,775 1,800 179 179 179 179 2,775 2,800 279 279 279 279 1,800 1,825 181 181 181 181 2,800 2,825 281 281 281 281 84 1,825 1,850 184 184 184 184 2,825 2,850 284 284 284 284 86 1,850 1,875 186 186 186 186 2,850 2,875 286 286 286 286 89 91 1,875 1,900 189 189 189 189 2,875 2,900 289 289 289 289 94 1,900 1,925 191 191 191 191 2,900 2,925 291 291 291 291 1,925 1,950 194 194 194 194 2,925 2,950 294 294 294 294 96 1,950 1,975 196 196 196 196 2,950 2,975 296 296 296 296 99 1,975 2,000 199 199 199 199 2,975 3,000 299 299 299 299 * This column must also be used by a qualifying surviving spouse. -3- (Continued) 2022 Tax Table If line 15 (taxable income) is― And you are― If line 15 (taxable And you are― income) is― If line 15 (taxable income) is― At But Single least less than Married filing jointly Married filing Head of a At But Single Married least less filing Married filing * sepa- rately house- hold than jointly * sepa- Head of a house- At But Single least less than rately hold Your tax is- Your tax is- - Continued And you are― Married Married filing filing * jointly sepa- Head of a rately house- hold Your tax is- 3,000 6,000 9,000 3,000 3,050 303 303 303 303 6,000 6,050 603 603 603 603 9,000 9,050 903 903 903 903 3,050 3,100 308 308 308 308 6,050 6,100 608 608 608 608 9,050 9,100 908 908 908 908 3,100 3,150 313 313 313 313 6,100 6,150 613 613 613 613 9,100 9,150 913 913 913 913 3,150 3,200 318 318 318 318 6,150 6,200 618 618 618 618 9,150 9,200 918 918 918 918 3,200 3,250 323 323 323 323 6,200 6,250 623 623 623 623 9,200 9,250 923 923 923 923 3,250 3,300 328 328 328 328 6,250 6,300 628 628 628 628 9,250 9,300 928 928 928 928 3,300 3,350 333 333 333 333 6,300 6,350 633 633 633 633 9,300 9,350 933 933 933 933 3,350 3,400 338 338 338 338 6,350 6,400 638 638 638 638 9,350 9,400 938 938 938 938 3,400 3,450 343 343 343 343 6,400 6,450 643 643 643 643 9,400 9,450 943 943 943 943 3,450 3,500 348 348 348 348 6,450 6,500 648 648 648 648 9,450 9,500 948 948 948 948 3,500 3,550 353 353 353 353 6,500 6,550 653 653 653 653 9,500 9,550 953 953 953 953 3,550 3,600 358 358 358 358 6,550 6,600 658 658 658 658 9,550 9,600 958 958 958 958 3,600 3,650 363 363 363 363 6,600 6,650 663 663 663 663 9,600 9,650 963 963 963 963 3,650 3,700 368 368 368 368 6,650 6,700 668 668 668 668 9,650 9,700 968 968 968 968 3,700 3,750 373 373 373 373 6,700 6,750 673 673 673 673 9,700 9,750 973 973 973 973 3,750 3,800 378 378 378 378 6,750 6,800 678 678 678 678 9,750 9,800 978 978 978 978 3,800 3,850 383 383 383 383 6,800 6,850 683 683 683 683 9,800 9,850 983 983 983 983 3,850 3,900 388 388 388 388 6,850 6,900 688 688 688 688 9,850 9,900 988 988 988 988 3,900 3,950 393 393 393 393 6,900 6,950 693 693 693 693 9,900 9,950 993 993 993 993 3,950 4,000 398 398 398 398 6,950 7,000 698 698 698 698 9,950 10,000 998 998 998 998 4,000 7,000 10,000 4,000 4,050 403 403 403 403 7,000 7,050 703 703 703 703 10,000 10,050 1,003 1,003 1,003 1,003 4,050 4,100 408 408 408 408 7,050 7,100 708 708 708 708 10,050 10,100 1,008 1,008 1,008 1,008 4,100 4,150 413 413 413 413 7,100 7,150 713 713 713 713 10,100 10,150 1,013 1,013 1,013 1,013 4,150 4,200 418 418 418 418 7,150 7,200 718 718 718 718 10,150 10,200 1,018 1,018 1,018 1,018 4,200 4,250 423 423 423 423 7,200 7,250 723 723 723 723 10,200 10,250 1,023 1,023 1,023 1,023 4,250 4,300 428 428 428 428 7,250 7,300 728 728 728 728 10,250 10,300 1,028 1,028 1,028 1,028 4,300 4,350 433 433 433 433 7,300 7,350 733 733 733 733 10,300 10,350 1,034 1,033 1,034 1,033 4,350 4,400 438 438 438 438 7,350 7,400 738 738 738 738 10,350 10,400 1,040 1,038 1,040 1,038 4,400 4,450 443 443 443 443 7,400 7,450 743 743 743 743 10,400 10,450 1,046 1,043 1,046 1,043 4,450 4,500 448 448 448 448 7,450 7,500 748 748 748 748 10,450 10,500 1,052 1,048 1,052 1,048 4,500 4,550 453 453 453 453 7,500 7,550 753 753 753 753 10,500 10,550 1,058 1,053 1,058 1,053 4,550 4,600 458 458 458 458 7,550 7,600 758 758 758 758 10,550 10,600 1,064 1,058 1,064 1,058 4,600 4,650 463 463 463 463 7,600 7,650 763 763 763 763 10,600 10,650 1,070 1,063 1,070 1,063 4,650 4,700 468 468 468 468 7,650 7,700 768 768 768 768 10,650 10,700 1,076 1,068 1,076 1,068 4,700 4,750 473 473 473 473 7,700 7,750 773 773 773 773 10,700 10,750 1,082 1,073 1,082 1,073 4,750 4,800 478 478 478 478 7,750 7,800 778 778 778 778 10,750 10,800 1,088 1,078 1,088 1,078 4,800 4,850 483 483 483 483 7,800 7,850 783 783 783 783 10,800 10,850 1,094 1,083 1,094 1,083 4,850 4,900 488 488 488 488 7,850 7,900 788 788 788 788 10,850 10,900 1,100 1,088 1,100 1,088 4,900 4,950 493 493 493 493 7,900 7,950 793 793 793 793 10,900 10,950 1,106 1,093 1,106 1,093 4,950 5,000 498 498 498 498 7,950 8,000 798 798 798 798 10,950 11,000 1,112 1,098 1,112 1,098 5,000 8,000 11,000 5,000 5,050 503 503 503 503 8,000 8,050 803 803 803 803 11,000 11,050 1,118 1,103 1,118 1,103 5,050 5,100 508 508 508 508 8,050 8,100 808 808 808 808 11,050 11,100 1,124 1,108 1,124 1,108 5,100 5,150 513 513 513 513 8,100 8,150 813 813 813 813 11,100 11,150 1,130 1,113 1,130 1,113 5,150 5,200 518 518 518 518 8,150 8,200 818 818 818 818 11,150 11,200 1,136 1,118 1,136 1,118 5,200 5,250 523 523 523 523 8,200 8,250 823 823 823 823 11,200 11,250 1,142 1,123 1,142 1,123 5,250 5,300 528 528 528 528 8,250 8,300 828 828 828 828 11,250 11,300 1,148 1,128 1,148 1,128 5,300 5,350 533 533 533 533 8,300 8,350 833 833 833 833 11,300 11,350 1,154 1,133 1,154 1,133 5,350 5,400 538 538 538 538 8,350 8,400 838 838 838 838 11,350 11,400 1,160 1,138 1,160 1,138 5,400 5,450 543 543 543 543 8,400 8,450 843 843 843 843 11,400 11,450 1,166 1,143 1,166 1,143 5,450 5,500 548 548 548 548 8,450 8,500 848 848 848 848 11,450 11,500 1,172 1,148 1,172 1,148 5,500 5,550 553 553 553 553 8,500 8,550 853 853 853 853 11,500 11,550 1,178 1,153 1,178 1,153 5,550 5,600 558 558 558 558 8,550 8,600 858 858 858 858 11,550 11,600 1,184 1,158 1,184 1,158 5,600 5,650 563 563 563 563 8,600 8,650 863 863 863 863 11,600 11,650 1,190 1,163 1,190 1,163 5,650 5,700 568 568 568 568 8,650 8,700 868 868 868 868 11,650 11,700 1,196 1,168 1,196 1,168 5,700 5,750 573 573 573 573 8,700 8,750 873 873 873 873 11,700 11,750 1,202 1,173 1,202 1,173 5,750 5,800 578 578 578 578 8,750 8,800 878 878 878 878 11,750 11,800 1,208 1,178 1,208 1,178 5,800 5,850 583 583 583 583 8,800 8,850 883 883 883 883 11,800 11,850 1,214 1,183 1,214 1,183 5,850 5,900 588 588 588 588 8,850 8,900 888 888 888 888 11,850 11,900 1,220 1,188 1,220 1,188 5,900 5,950 6,000 5,950 593 593 593 593 8,900 8,950 893 893 893 893 11,900 11,950 1,226 1,193 1,226 1,193 598 598 598 598 8,950 9,000 898 898 898 898 11,950 12,000 1,232 1,198 1,232 1,198 (Continued) * This column must also be used by a qualifying surviving spouse. - 4- If line 15 (taxable income) is― At But Single least less than 12,000 2022 Tax Table - Continued And you are― If line 15 (taxable And you are― income) is― If line 15 (taxable income) is― And you are― Married filing Married filing Head of a At But Single Married least less filing Married filing Head of a At But Single jointly * sepa- house- than jointly * sepa- house- least less than Married Married filing filing Head of a * jointly sepa- rately hold rately hold rately house- hold Your tax is- Your tax is- Your tax is- 15,000 18,000 12,000 12,050 1,238 1,203 1,238 1,203 15,000 15,050 1,598 1,503 1,598 1,510 18,000 18,050 1,958 1,803 1,958 1,870 12,050 12,100 1,244 1,208 1,244 1,208 15,050 15,100 1,604 1,508 1,604 1,516 18,050 18,100 1,964 1,808 1,964 1,876 12,100 12,150 1,250 1,213 1,250 1,213 15,100 15,150 1,610 1,513 1,610 1,522 18,100 18,150 1,970 1,813 1,970 1,882 12,150 12,200 1,256 1,218 1,256 1,218 15,150 15,200 1,616 1,518 1,616 1,528 18,150 18,200 1,976 1,818 1,976 1,888 12,200 12,250 1,262 1,223 1,262 1,223 15,200 15,250 1,622 1,523 1,622 1,534 18,200 18,250 1,982 1,823 1,982 1,894 12,250 12,300 1,268 1,228 1,268 1,228 15,250 15,300 1,628 1,528 1,628 1,540 18,250 18,300 1,988 1,828 1,988 1,900 12,300 12,350 1,274 1,233 1.274 1,233 15,300 15,350 1,634 1,533 1,634 1,546 18,300 18,350 1,994 1,833 1,994 1,906 12,350 12,400 1,280 1,238 1,280 1,238 15,350 15,400 1,640 1,538 1,640 1,552 18,350 18,400 2,000 1,838 2,000 1,912 12,400 12,450 1,286 1,243 1,286 1,243 15,400 15,450 1,646 1,543 1,646 1,558 18,400 18,450 2,006 1,843 2,006 1,918 12,450 12,500 1,292 1,248 1,292 1,248 15,450 15,500 1,652 1,548 1,652 1,564 18,450 18,500 2,012 1,848 2,012 1,924 12,500 12,550 1,298 1,253 1,298 1,253 15,500 15,550 1,658 1,553 1,658 1,570 18,500 18,550 2,018 1,853 2,018 1,930 12,550 12,600 1,304 1,258 1,304 1,258 15,550 15,600 1,664 1,558 1,664 1,576 12,600 12,650 1,310 1,263 1,310 1,263 15,600 15,650 1,670 1,563 1,670 1,582 18,550 18,600 18,600 2,024 1,858 2,024 1,936 18,650 2,030 1,863 2,030 1,942 12,650 12,700 1,316 1,268 1,316 1,268 15,650 15,700 1,676 1,568 1,676 1,588 18,650 18,700 2,036 1,868 2,036 1,948 12,700 12,750 1,322 1,273 1,322 1,273 15,700 15,750 1,682 1,573 1,682 1,594 18,700 18,750 2,042 1,873 2,042 1,954 12,750 12,800 1,328 1,278 1,328 1,278 15,750 15,800 1,688 1,578 1,688 1,600 18,750 18,800 2,048 1,878 2,048 1,960 12,800 12,850 1,334 1,283 1,334 1,283 15,800 15,850 1,694 1,583 1,694 1,606 18,800 18,850 2,054 1,883 2,054 1,966 12,850 12,900 1,340 1,288 1,340 1,288 15,850 15,900 1,700 1,588 1,700 1,612 18,850 18,900 2,060 1,888 2,060 1,972 12,900 12,950 1,346 1,293 1,346 1,293 15,900 15,950 1,706 1,593 1,706 1,618 18,900 18,950 2,066 1,893 2,066 1,978 12,950 13,000 1,352 1,298 1,352 1,298 15,950 16,000 1,712 1,598 1,712 1,624 18,950 19,000 2,072 1,898 2,072 1,984 13,000 16,000 19,000 13,000 13,050 1,358 1,303 1,358 1,303 16,000 16,050 1,718 1,603 1,718 1,630 19,000 19,050 2,078 1,903 2,078 1,990 13,050 13,100 1,364 1,308 1,364 1,308 16,050 16,100 1,724 1,608 1,724 1,636 19,050 19,100 2,084 1,908 2,084 1,996 13,100 13,150 1,370 1,313 1,370 1,313 16,100 16,150 1,730 1,613 1,730 1,642 19,100 19,150 2,090 1,913 2,090 2,002 13,150 13,200 1,376 1,318 1,376 1,318 16,150 16,200 1,736 1,618 1,736 1,648 19,150 19,200 2,096 1,918 2,096 2,008 13,200 13,250 1,382 1,323 1,382 1,323 16,200 16,250 1,742 1,623 1,742 1,654 19,200 19,250 2,102 1,923 2,102 2,014 13,250 13,300 1,388 1,328 1,388 1,328 16,250 16,300 1,748 1,628 1,748 1,660 19,250 19,300 2,108 1,928 2,108 2,020 13,300 13,350 1,394 1,333 1,394 1,333 16,300 16,350 1,754 1,633 1,754 1,666 19,300 19,350 2,114 1,933 2,114 2,026 13,350 13,400 1,400 1,338 1,400 1,338 16,350 16,400 1,760 1,638 1,760 1,672 19,350 19,400 2,120 1,938 2,120 2,032 13,400 13,450 1,406 1,343 1,406 13,450 13,500 1,412 1,348 1,412 1,343 1,348 16,450 16,500 16,400 16,450 1,766 1,643 1,766 1,678 19,400 19,450 2,126 1,943 2,126 2,038 1,772 1,648 1,772 1,684 19,450 19,500 2,132 1,948 2,132 2,044 13,500 13,550 1,418 1,353 1,418 1,353 16,500 16,550 1,778 1,653 1,778 1,690 19,500 19,550 2,138 1,953 2,138 2,050 13,550 13,600 1,424 1,358 1,424 1,358 16,550 16,600 1,784 1,658 1,784 1,696 19,550 19,600 2,144 1,958 2,144 2,056 13,600 13,650 1,430 1,363 1,430 1,363 16,600 16,650 1,790 1,663 1,790 1,702 19,600 19,650 2,150 1,963 2,150 2,062 13,650 13,700 1,436 1,368 1,436 1,368 16,650 16,700 1,796 1,668 1,796 1,708 19,650 19,700 2,156 1,968 2,156 2,068 13,700 13,750 1,442 1,373 1,442 1,373 16,700 16,750 1,802 1,673 1,802 1,714 19,700 19,750 2,162 1,973 2,162 2,074 13,750 13,800 1,448 1,378 1,448 1,378 16,750 16,800 1,808 1,678 1,808 1,720 19,750 19,800 2,168 1,978 2,168 2,080 13,800 13,850 1,454 1,383 1,454 1,383 16,800 16,850 1,814 1,683 1,814 1,726 19,800 19,850 2,174 1,983 2,174 2,086 13,850 13,900 1,460 1,388 1,460 1,388 16,850 16,900 1,820 1,688 1,820 1,732 19,850 19,900 2,180 1,988 2,180 2,092 13,900 13,950 1,466 1,393 1,466 1,393 16,900 16,950 1,826 1,693 1,826 1,738 19,900 19,950 2,186 1,993 2,186 2,098 13,950 14,000 1,472 1,398 1,472 1,398 16,950 17,000 1,832 1,698 1,832 1,744 19,950 20,000 2,192 1,998 2,192 2,104 14,000 17,000 20,000 14,000 14,050 1,478 1,403 1,478 1,403 17,000 17,050 1,838 1,703 1,838 1,750 20,000 20,050 2,198 2,003 2,198 2,110 14,050 14,100 1,484 1,408 1,484 1,408 17,050 17,100 1,844 1,708 1,844 1,756 20,050 20,100 2,204 2,008 2,204 2,116 14,100 14,150 1,490 1,413 1,490 1,413 17,100 17,150 1,850 1,713 1,850 1,762 20,100 20,150 2,210 2,013 2,210 2,122 14,150 14,200 1,496 1,418 1,496 1,418 17,150 17,200 1,856 1,718 1,856 1,768 20,150 20,200 2,216 2,018 2,216 2,128 14,200 14,250 1,502 1,423 1,502 1,423 17,200 17,250 1,862 1,723 1,862 1,774 20,200 20,250 2,222 2,023 2,222 2,134 14,250 14,300 1,508 1,428 1,508 1,428 17,250 17,300 1,868 1,728 1,868 1,780 20,250 20,300 2,228 2,028 2,228 2,140 14,300 14,350 1,514 1,433 1,514 1,433 17,300 17,350 1,874 1,733 1,874 1,786 20,300 20,350 2,234 2,033 2,234 2,146 14,350 14,400 1,520 1,438 1,520 1,438 17,350 17,400 1,880 1,738 1,880 1,792 20,350 20,400 2,240 2,038 2,240 2,152 14,400 14,450 1,526 1,443 1,526 1,443 17,400 17,450 1,886 1,743 1,886 1,798 20,400 20,450 2,246 2,043 2,246 2,158 14,450 14,500 1,532 1,448 1,532 1,448 17,450 17,500 1,892 1,748 1,892 1,804 20,450 20,500 2,252 2,048 2,252 2,164 14,500 14,550 1,538 1,453 1,538 1,453 17,500 17,550 1,898 1,753 1,898 1,810 20,500 20,550 2,258 2,053 2,258 2,170 14,550 14,600 1,544 1,458 1,544 1,458 17,550 17,600 1,904 1,758 1,904 1,816 20,550 20,600 2,264 2,058 2,264 2,176 14,600 14,650 1,550 1,463 1,550 1,463 17,600 17,650 1,910 1,763 1,910 1,822 20,600 20,650 2,270 2,064 2,270 2,182 14,650 14,700 1,556 1,468 1,556 1,468 17,650 17,700 1,916 1,768 1,916 1,828 20,650 20,700 2,276 2,070 2,276 2,188 14,700 14,750 1,562 1,473 1,562 1,474 17,700 17,750 1,922 1,773 1,922 1,834 20,700 20,750 2,282 2,076 2,282 2,194 14,750 14,800 1,568 1,478 1,568 1,480 17,750 17,800 1,928 1,778 1,928 1,840 20,750 20,800 2,288 2,082 2,288 2,200 14,800 14,850 1,574 1,483 1,574 1,486 17,800 17,850 1,934 1,783 1,934 1,846 20,800 20,850 2,294 2,088 2,294 2,206 14,850 14,900 1,580 1,488 1,580 1,492 17,850 17,900 1,940 1,788 1,940 1,852 20,850 20,900 2,300 2,094 2,300 2,212 14,900 14,950 1,586 1,493 1,586 1,498 17,900 17,950 1,946 1,793 1,946 1,858 20,900 20,950 2,306 2,100 2,306 2,218 14,950 15,000 1,592 1,498 1,592 1,504 17,950 18,000 1,952 1,798 1,952 1,864 20,950 21,000 2,312 2,106 2,312 2,224 (Continued) * This column must also be used by a qualifying surviving spouse. - 5-/n a Employee's social security number 266-15-1966 b Employer identification number (EIN) 60-3456789 C Employer's name, address, and ZIP code Kissimmee Airlines, Inc. 2432 Bay Blvd. Kissimmee, FL 34741 d Control number e Employee's first name and initial Last name Alexander T. Smith 1234 Buena Vista Drive Orlando, FL 32830 OMB No. 1545-0008 Safe, accurate, FAST! Use Visit the IRS website at IRS file www.irs.gov/efile 1 Wages, tips, other compensation 63,900.00 3 Social security wages 67,172.00 5 Medicare wages and tips 67,172.00 7 Social security tips 9 Verification code Suff. 11 Nonqualified plans 2 Federal income tax withheld 6,010.00 4 Social security tax withheld 4,164.66 6 Medicare tax withheld 973.99 8 Allocated tips 10 Dependent care benefits 12a See instructions for box 12 13 Statutory employee 14 Other D e Retirement plan Third-party sick pay 12b C d 12c 12d C 3,272.00 f Employee's address and ZIP code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name FL Form W-2 Wage and Tax Statement 2021 Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. Department of the Treasury-Internal Revenue Service/n CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional) or foreign postal code, and telephone no. OMB No. 1545-0112 Orlando National Bank 2021 1 Interest income Interest Income 9871 Disney Way Orlando, FL 32801 1,500.76 $ Form 1099-INT 2 Early withdrawal penalty Copy B PAYER'S TIN RECIPIENT'S TIN $ For Recipient 3 Interest on U.S. Savings Bonds and Treas. obligations 60-7654321 266-15-1966 $ RECIPIENT'S name Alexander T. Smith Street address (including apt. no.) 1234 Buena Vista Drive 4 Federal income tax withheld 5 Investment expenses 6 Foreign tax paid $ 8 Tax-exempt interest City or town, state or province, country, and ZIP or foreign postal code Orlando, FL 32830 $ $ 10 Market discount 11 Bond premium FATCA filing $ requirement $ 12 Bond premium on Treasury obligations 13 Bond premium on tax-exempt bond This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. 7 Foreign country or U.S. possession 9 Specified private activity bond interest Account number (see instructions) Form 1099-INT (keep for your records) $ $ 14 Tax-exempt and tax credit bond CUSIP no. 15 State 16 State identification no. 17 State tax withheld $ www.irs.gov/Form 1099INT Department of the Treasury - Internal Revenue Service/n SCHEDULE B (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on return Interest and Ordinary Dividends Go to www.irs.gov/ScheduleB for instructions and the latest information. Attach to Form 1040 or 1040-SR. Part I 1 Interest (See instructions and the Instructions for Form 1040, line 2b.) Note: If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this interest first. Also, show that buyer's social security number and address: OMB No. 1545-0074 2022 Attachment Sequence No. 08 Your social security number 1 Amount 2 Add the amounts on line 1 . 2 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815 3 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, line 2b Note: If line 4 is over $1,500, you must complete Part III. 4 Amount Part II 5 List name of payer: Ordinary Dividends (See instructions and the Instructions for Form 1040, line 3b.) Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. Part III Foreign Accounts 5 6 Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line 3b Note: If line 6 is over $1,500, you must complete Part III. 6 You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Yes No and Trusts Caution: If required, failure to file FinCEN Form 114 may result in substantial penalties. Additionally, you may be required to file Form 8938, Statement of Specified Foreign Financial Assets. See instructions. 7a At any time during 2022, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country? See instructions 8 If "Yes," are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements. b If you are required to file FinCEN Form 114, list the name(s) of the foreign country(-ies) where the financial account(s) are located: During 2022, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If "Yes," you may have to file Form 3520. See instructions. For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040) 2022/n SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service Additional Income and Adjustments to Income Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040, 1040-SR, or 1040-NR Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received b Date of original divorce or separation agreement (see instructions): Business income or (loss). Attach Schedule C 3 4 Other gains or (losses). Attach Form 4797 6 7 Unemployment compensation . 8 Other income: OMB No. 1545-0074 2022 Attachment Sequence No. 01 Your social security number Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F. a Net operating loss 1 2a 34567 8a b Gambling 8b c Cancellation of debt 8c d Foreign earned income exclusion from Form 2555 8d e Income from Form 8853 8e f Income from Form 8889 8f g Alaska Permanent Fund dividends 8g h Jury duty pay 8h ¡ Prizes and awards 8i j Activity not engaged in for profit income 8j k Stock options . 8k | Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property 81 Im Olympic and Paralympic medals and USOC prize money (see instructions) 8m In Section 951(a) inclusion (see instructions) 8n • Section 951A(a) inclusion (see instructions) 80 p Section 461(l) excess business loss adjustment q Taxable distributions from an ABLE account (see instructions) 8p 8q r Scholarship and fellowship grants not reported on Form W-2 8r s Nontaxable amount of Medicaid waiver payments included on Form 1040, line 1a or 1d 8s t Pension or annuity from a nonqualifed deferred compensation plan or a nongovernmental section 457 plan 8t u Wages earned while incarcerated 8u z Other income. List type and amount: 8z 9 Total other income. Add lines 8a through 8z 10 Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 10 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040) 2022 Schedule 1 (Form 1040) 2022 Page 2 Part II Adjustments to Income 11 Educator expenses 11 12 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 13 Health savings account deduction. Attach Form 8889 13 14 Moving expenses for members of the Armed Forces. Attach Form 3903 14 15 Deductible part of self-employment tax. Attach Schedule SE 15 16 17 Self-employed SEP, SIMPLE, and qualified plans . Self-employed health insurance deduction 18 Penalty on early withdrawal of savings 19a Alimony paid 20 21 2222 b Recipient's SSN c Date of original divorce or separation agreement (see instructions): IRA deduction . Student loan interest deduction Reserved for future use 23 Archer MSA deduction 24 Other adjustments: 16 17 18 19a 21 2222 23 a Jury duty pay (see instructions) 24a b Deductible expenses related to income reported on line 81 from the rental of personal property engaged in for profit 24b c Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8m. 24c d Reforestation amortization and expenses. 24d e Repayment of supplemental unemployment benefits under the Trade Act of 1974. . 24e f Contributions to section 501(c)(18)(D) pension plans 24f g Contributions by certain chaplains to section 403(b) plans 24g h Attorney fees and court costs for actions involving certain unlawful discrimination claims (see instructions) . 24h i Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations 24i j Housing deduction from Form 2555 24j k Excess deductions of section 67(e) expenses from Schedule K-1 (Form 1041) . . 24k z Other adjustments. List type and amount: 24z 25 25 Total other adjustments. Add lines 24a through 24z 25 26 Add lines 11 through 23 and 25. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 10, or Form 1040-NR, line 10a 26 Schedule 1 (Form 1040) 2022/n Qualified Dividends and Capital Gain Tax Worksheet-Line 16 Before you begin: 1. Keep for Your Records See the earlier instructions for line 16 to see if you can use this worksheet to figure your tax. Before completing this worksheet, complete Form 1040 or 1040-SR through line 15. If you don't have to file Schedule D and you received capital gain distributions, be sure you checked the box on Form 1040 or 1040-SR, line 7. Enter the amount from Form 1040 or 1040-SR, line 15. However, if you are filing Form 2555 (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet 1. 2. Enter the amount from Form 1040 or 1040-SR, line 3a* 2. 3. Are you filing Schedule D?* ☐ Yes. Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or 16 is blank or a loss, enter -0-. 3. ☐ No. Enter the amount from Form 1040 or 1040-SR, line 7. 4. Add lines 2 and 3 4. 5. Subtract line 4 from line 1. If zero or less, enter -0- 5. 6. Enter: $41,675 if single or married filing separately, $83,350 if married filing jointly or qualifying surviving spouse, $55,800 if head of household. 6. 7. Enter the smaller of line 1 or line 6 7. 8. Enter the smaller of line 5 or line 7 8. 9. Subtract line 8 from line 7. This amount is taxed at 0% 9. 10. Enter the smaller of line 1 or line 4 10. 11. Enter the amount from line 9 11. 12. Subtract line 11 from line 10 12. 13. Enter: $459,750 if single, $258,600 if married filing separately, $517,200 if married filing jointly or qualifying surviving spouse, $488,500 if head of household. 13. 14. Enter the smaller of line 1 or line 13 14. 15. Add lines 5 and 9 15. 16. Subtract line 15 from line 14. If zero or less, enter -0- 16. 17. Enter the smaller of line 12 or line 16 17. 18. Multiply line 17 by 15% (0.15) 18. 19. Add lines 9 and 17 19. 20. Subtract line 19 from line 10 20. 21. Multiply line 20 by 20% (0.20) 21. 22. Figure the tax on the amount on line 5. If the amount on line 5 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 5 is $100,000 or more, use the Tax Computation Worksheet 23. Add lines 18, 21, and 22 23 22. 23. 24. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet 24. 25. Tax on all taxable income. Enter the smaller of line 23 or 24. Also include this amount on the entry space on Form 1040 or 1040-SR, line 16. If you are filing Form 2555, don't enter this amount on the entry space on Form 1040 or 1040-SR, line 16. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet If you are filing Form 2555, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. 25./n $1040 Filing Status Check only one box. Department of the Treasury-Internal Revenue Service U.S. Individual Income Tax Return Single Married filing jointly 2022 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Married filing separately (MFS) Head of household (HOH) Qualifying surviving spouse (QSS) If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child's name if the qualifying person is a child but not your dependent: Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initial Last name Home address (number and street). If you have a P.O. box, see instructions. Apt. no. City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code Spouse's social security number Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change Foreign country name Foreign province/state/county Foreign postal code your tax or refund. You Spouse Digital Assets Standard Deduction Age/Blindness You: At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) Someone can claim: You as a dependent Your spouse as a dependent Spouse itemizes on a separate return or you were a dual-status alien Yes No Were born before January 2, 1958 Are blind Spouse: Dependents (see instructions): (2) Social security number (1) First name Last name to you Was born before January 2, 1958 Is blind (3) Relationship (4) Check the box if qualifies for (see instructions): Child tax credit Credit for other dependents If more than four dependents, see instructions and check here Income 1a Total amount from Form(s) W-2, box 1 (see instructions) 1a b Attach Form(s) с Tip income not reported on line 1a (see instructions) W-2 here. Also attach Forms d W-2G and e 1099-R if tax f was withheld. Household employee wages not reported on Form(s) W-2. Medicaid waiver payments not reported on Form(s) W-2 (see instructions) Taxable dependent care benefits from Form 2441, line 26 Employer-provided adoption benefits from Form 8839, line 29 1b 1c 1d 1e 1f If you did not g Wages from Form 8919, line 6 1g get a Form h Other earned income (see instructions) 1h W-2, see ¡ Nontaxable combat pay election (see instructions) 1i instructions. Z Add lines 1a through 1h 1z Attach Sch. B 2a Tax-exempt interest if required. За Qualified dividends 4a IRA distributions Standard 5a Pensions and annuities Deduction for- 6a Social security benefits 2a За 4a 5a 6a b Taxable interest 2b b Ordinary dividends 3b b Taxable amount. 4b b Taxable amount. 5b b Taxable amount. 6b • Single or Married filing C separately, 7 $12,950 If you elect to use the lump-sum election method, check here (see instructions) Capital gain or (loss). Attach Schedule D if required. If not required, check here ☐ ☐ · • Married filing 8 Other income from Schedule 1, line 10 jointly or Qualifying 9 surviving spouse, 10 $25,900 Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income Adjustments to income from Schedule 1, line 26 780 • Head of household, $19,400 11 Subtract line 10 from line 9. This is your adjusted gross income 12 • If you checked 13 any box under Standard 14 Standard deduction or itemized deductions (from Schedule A) Qualified business income deduction from Form 8995 or Form 8995-A Add lines 12 and 13 Deduction, 15 see instructions. Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. 9 10 11 12 13 14 15 Cat. No. 11320B Form 1040 (2022) Form 1040 (2022) Page 2 Tax and 16 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 3 16 Credits 17 Amount from Schedule 2, line 3 18 Add lines 16 and 17 . 19 20 Child tax credit or credit for other dependents from Schedule 8812 Amount from Schedule 3, line 8 21 Add lines 19 and 20 22 Subtract line 21 from line 18. If zero or less, enter -0- 23 Other taxes, including self-employment tax, from Schedule 2, line 21 24 Add lines 22 and 23. This is your total tax 17 18 19 20 21 22 23 24 67 Payments 25 Federal income tax withheld from: a Form(s) W-2 25a b Form(s) 1099 25b с Other forms (see instructions) 25c d Add lines 25a through 25c 25d 26 2022 estimated tax payments and amount applied from 2021 return 26 If you have a qualifying child, 27 Earned income credit (EIC). 27 attach Sch. EIC. 28 Additional child tax credit from Schedule 8812 28 29 American opportunity credit from Form 8863, line 8. 29 30 Reserved for future use. 30 31 Amount from Schedule 3, line 15 31 32 33 Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits Add lines 25d, 26, and 32. These are your total payments 32 33 Refund 34 35a If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid Amount of line 34 you want refunded to you. If Form 8888 is attached, check here 34 35a Direct deposit? b Routing number c Type: ☐ Checking Savings See instructions. d Account number 36 Amount of line 34 you want applied to your 2023 estimated tax. 36 Amount 37 Subtract line 33 from line 24. This is the amount you owe. You Owe 38 For details on how to pay, go to www.irs.gov/Payments or see instructions Estimated tax penalty (see instructions) 37 38 Third Party Designee Do you want to allow another person to discuss this return with the IRS? See instructions Designee's name Phone no. Yes. Complete below. Personal identification number (PIN) No Sign Here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) Your occupation Phone no. Preparer's name Email address Preparer's signature Paid Preparer Use Only Firm's name Firm's address Go to www.irs.gov/Form 1040 for instructions and the latest information. Date PTIN Check if: Self-employed Phone no. Firm's EIN Form 1040 (2022)/nThis assignment requires you to complete four tax forms (Form 1040, Schedule 1, Schedule B, and Qualified Dividends and Capital Gain Tax Worksheet, using the provided taxpayer information. The forms provided are for tax year 2022 (please disregard 2021 date on W2, 1099-INT, and 1099-DIV). • Step 1: Read the information below and download the taxpayer information based on the last two digits of your REDid: ⚫ REDid ending in 00-19: Form W-2 1099-INT ✓ 1099-DIV✓ ⚫ REDid ending in 20-39: Form W-2 ↓ 1099-INT ✓ 1099-DIV↓ 1099-INT ✓ 1099-DIV✓ 1099-DIV↓ ⚫ REDid ending in 40-59: Form W-2 ⚫ REDid ending in 60-79: Form W-2 ⚫ REDid ending in 80-99: Form W-2 1099-INT 1099-INT ✓1099-DIV↓ Step 2: Download the blank forms on which to complete the assignment Blank Form 1040 • Blank Form 1040 ⚫ Blank Schedule 1 (fillable) (fillable) (fillable) ⚫ Blank Schedule B ⚫ Blank Qualified Dividends and Capital Gain Tax Worksheet ✓ (not fillable - complete by hand and upload image) • Step 3: Complete Schedule B first, then Schedule 1, then Form 1040 down through Line 15. Then complete the Qual Div worksheet and use that information to complete the rest of the Form 1040 Step 4: Submit all 4 documents to complete the assignment. Alexander Smith and his wife Allison are married and will file a joint tax return for 2022. The Smiths live at 1234 Buena Vista Drive, Orlando, FL 32830. Alexander is a commuter airline pilot but took 6 months off from his job in 2022 to obtain a higher-level pilot's license. The Smiths have an 18-year-old son, Brad, who is enrolled in twelfth grade at the Walt Disney Prep School. The Smiths also have a 19-year-old daughter, Angelina, who is a part-time first-year student at Orange County Community College (OCCC). Angelina is married to Sean Shirker, who is 19 years old and also a part-time student at OCCC. Sean and Angelina have a 1-year-old child, Trask (Social Security number 115-45-7893). All the Shirkers live in an apartment near the Smiths. Angelina and Sean both also work part- time for Sean's wealthy grandfather as apprentices in his business. The Shirker's wages for the year were $50,000 which allowed them to pay all the personal expenses for themselves and Trask. Name Social Security number Alexander Smith 266-15-1966 Allison Smith 266-34-1967 Brad Smith 261-55-2121 Angelina Shirker 261-45-1212 Sean Shirker 546-78-1235 Trask Shirker 115-45-7893 Date of birth 09/22/1970 07/01/1971 12/21/2005 03/31/2004 05/01/2004 10/21/2021 Five years ago, Alexander divorced Jennifer Amistad (Social Security number 341-55-6789). Alexander pays Jennifer $200 per month in alimony under the divorce decree. Not included with the Smith's tax forms was interest from State of Florida bonds of $145.00. Alexander also received a Form W-2, Form 1099-INT, and Form 1099-DIV that you should have downloaded in Step 1 above.See Answer
  • Q11:-Form 1065 -Related statement/schedule and forms -Form4562 -Form 8949 -schedule D -Schedule K-1 for all LLC members -transmittal letter to Ryan Trek that will be transmitted to the partner with their schedule K-1/n Trek Engineering Financial Statements-Cash Basis 12/31/2023 Consulting Revenues Interest Income Bank of America Interest from City of Tustin Bonds Treasury Note Interest 12,750,000 15,000 35,000 50,000 Net Loss from Sale of Stock 75,500 Capital Gaim Distributions-Long Term 100,000 Ordinary Dividends 75,000 Qualified Dividends Total Revenue Guaranteed Payments 25,000 13,125,500 6,000,000 W-2 Wages 2,000,000 Advertising 350,000 Charitable Contributions 96,000 Depreciation ** 540,000 Repairs and Maintenance 50,000 Premiums for Life Insurance (Partnership is Beneficiary) 75,000 Interest Expense-Line of Credit 50,000 Guaranteed Payment to Trek for Capital 250,000 Legal and Accounting Fees* 130,000 Meals 225,000 Travel 300,000 Entertainment 350,000 Insurance Office Rent Office Expense 52,000 175,000 200,000 Payroll Taxes 150,000 Employee Benefits 125,000 Lobbying Expenses-Congressman George 12,500 Utilities 54,300 Political Contributions 35,000 Total Expenses 11,219,800 Book Income 1,905,700 * Includes $50,000 Legal Fees from a failed acquisition of another engineering company and $20,000 for a failed acquisition of a contruction Co. ** Assume Section 179 Cash Marketable Securities Office Equipment Accumulated Depreciation Total Assets Line of Credit Loan from Wang Capital Account-Trek Capital Account-Shatner Capital Account-Nimoy Capital Account-Kelly Total Liabilities and Equity 12/31/2022 1,900,000 500,000 960,000 12/31/2023 TBD 1,250,000 1,500,000 (960,000) (1,500,000) 2,400,000 TBD 1,000,000 1,000,000 350,000 TBD 350,000 TBD 350,000 TBD 350,000 TBD 2,400,000 TBD/n Practice Set #2 Partnership Tax Return Ryan Trek (111-11-1112), Bill Shatner (222-22-2223), Lee Nimoy (333-33-3334), and Dee Kelly (444-44-4445) are equal and unrelated members in Trek Engineering LLC (Trek). Dee Kelly is NOT an active member in the partnership. He is Trek's friend that invested in the partnership. He states he is a doctor and not an engineer. Trek is an engineering services for clients that help clients with energy issues in the Irvine area. The LLC's Federal ID number is 55-5555556. It uses the cash basis and the calendar year and began operations on January 1, 2007. Its current address is 2501 Sand Canyon Blvd., Suite 2100, Irvine, CA 92602. The financial information enclosed from the LLC's income statement for the current year. This year, Trek wrapped up its remodel with the purchase of $540,000 of office furniture for which it will claim a § 179 deduction. (For simplicity, assume that the Company uses the same cost recovery methods for both tax and financial purposes.) There is no depreciation adjustment for alternative minimum tax purposes. Trek invests much of its excess cash in dividend-paying stocks, mutual funds, treasuries, and tax- exempt securities. During the year, the LLC several securities transactions. On May 15, purchased 1,000 shares of Scotty, Inc. stock for $200,000; it sold those shares on December 31 for $165,000. On March 15 of last year, Trek purchased 3,000 shares of Chekov Machinery, Inc. stock for $189,000; it sold those shares for $299,500 on December 15 of the current year. These transactions were NOT reported to the IRS on Forms 1099–B; Treks' basis in these shares was reported so form. Each active member received an equal guaranteed payment for services rendered. Trek received a guaranteed payment of $250,000 for the additional $2,000,000 of capital invested. He invested the additional capital in 2023. Net income per books is $1,905,700. On January 1, the members' capital accounts equaled $350,000. In addition to their guaranteed payments, each member withdrew $300,000 cash during the year. All contributions and distributions have been in cash, so the LLC has no net unrecognized § 704(c) gain or loss. The LLC's balance sheet as of December 31 of this year is also enclosed. All debt is shared equally by all members. Each active member has personally guaranteed the line of credit debt of the LLC. All active members are participating in the Trek operations. For our purposes, assume that Treks' operations constitute one active trade or business for purposes of the passive activity and at-risk limitations. The appropriate business code for the entity is 237310. For the Form 1065, page 5, Analysis of Net Income, put all partners' allocations in cell 2(b)(ii), per IRS instructions for an LLC. REQUIRED 1) Prepare a 2023 federal Form 1065, pages 1, 4, and 5, for Trek Engineering LLC using tax basis information for Schedules L and M-2. Use the Intuit Pro connect software provided to you in Canvas to prepare Form 1065 Forms 4562, 8949, and Schedule D and any other forms you think are necessary. DO NOT PREPARE THE STATE TAX RETURNS 2) Prepare Schedule K−1 for all LLC members. Use any address for the partners. 3) You need to prepare an explanation write up on how you treated the items is the facts above. The explanation is meant to determine if you understand the 1065 assignment. Please explain how you determined what is taxable, not taxable, deductible, or not deductible. Use the appropriate authorities to document your conclusions. Also, provide detail computations of your book/tax differences and computation of taxable income. Finally, please provide a computation each partner's tax basis (assume the beginning capital account is the opening tax basis) and document the tax consequences of all transactions between the members and LLC. If the facts aren't in the case, please make your own assumptions and document them. Prepare this is in a tax memorandum format and it should be single-spaced. 4) Prepare a transmittal letter to Ryan Trek that will be transmitted to the partner with their schedule K-1. This assignment is worth 100 points LATE ASSIGNMENTS WILL BE ACCEPTED.See Answer
  • Q12: Σ 目 M N E ווי A Appendix A Private Company Accounting 口 The FASB has traditionally taken the position that there should be one set of GAAP. However, due to growing concern about differential costs and benefits of a "one size fits all" reporting package, the FASB has considered providing alternative accounting treatments for private companies in areas that include (1) recognition and measurement, (2) presentation and disclosure, and (3) transition methods for financial accounting standards and effective dates. Since 2012, the FASB has worked with the Private Company Council (PCC) to improve the process of setting accounting standards for private companies. A.1 The Private Company Council (PCC) Background on the PCC The PCC is comprised of 9–12 members with balanced representation from private company auditing, preparer, and user communities. The PCC has two principal responsibilities: 1. The PCC determines, using the Private Company Decision-Making Framework (PCC Framework), whether alternatives to existing GAAP are necessary to address the needs of users of private company financial statements. 2. The PCC serves as the primary advisory body to the FASB on the appropriate treatment for private companies for items under active consideration on the FASB's technical agenda.¹ Following a FASB endorsement process, alternatives for private companies developed by the PCC are incorporated into GAAP. Private Company Accounting Private Company Decision-Making Framework One of the PCC's first responsibilities was to work with the FASB to develop mutually agreed-on criteria for private company alternatives. The result of that joint effort was the Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies (the PCC Framework), issued in December 2013. This guide assists the Board and the PCC in determining whether and in what circumstances to provide alternative recognition, measurement, disclosure, display, effective date, and transition guidance for private companies reporting under GAAP. In making these assessments, the Board and the PCC first should determine whether the alternative recognition or measurement guidance being evaluated provides relevant information to users of private company financial statements at a reasonable cost. That analysis should focus on (a) the relevance of the information in meeting the objective of financial reporting for typical users of private company Financial statements, (b) the characteristics that differentiate users of private company financial statements from users of public company inancial statements, and (c) the cost and complexity of applying the guidance. A-1 MAN < > W A.2 Priv... G read.wiley.com M ists M M + G h 目 • In addition to developing the PCC Framework, the FASB also issued an Accounting Standards Update on the definition of a public business entity. The FASB and the PCC use that definition to identify the types of companies that are excluded from the scope of the PCC Framework. In general, a company is considered a public business entity if is required to file or furnish financial statements to the SEC or to file or furnish financial statements with a regulatory agency (domestic or foreign) other than the SEC in preparation for the sale of or for purposes of issuing securities. ☐ er an • The PCC also has become a springboard for efforts to reduce complexity in GAAP for all types of organizations, not just private companies. The FASB has adopted a practice of considering w GAAP alternative proposed by the PCC may make sense for public as well as private companies along with not-for-profit organizations. For example, the FASB issued an Accounting Standards Update to address financial reporting complexity for both public and private development-stage companies. ૧ Two issues addressed by the PCC relate to the accounting for intangible assets and the amortization of goodwill. = A.2 Private Company Alternatives for Intangible Assets and Goodwill Accounting for Identifiable Intangible Assets = In December 2014, the FASB issued an Accounting Standards Update, developed with the PCC, that provides an alternative to exempt private companies from separately recognizing and measuring non- competition agreements and customer-related intangible assets (such as customer relationships) that are not capable of being sold or licensed independently in a business combination.² Additional Background As discussed in Chapter 11, in a business combination the acquirer separately recognizes all intangible assets that are identifiable, at their acquisition-date fair values. An intangible asset is identifiable if it meets either of the following criteria. 1. It arises from contractual or other legal rights regardless of whether those rights are transferable or separable from the entity or from other rights and obligations. Private Company Accounting 2. It is separable, that is, capable of being separated from the company and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset, or liability, regardless of whether the company intends to do so. For example, in the Tractorling example presented in Chapter 11, Diversified included patents (which meet the identifiable definition) in its calculation of the net identifiable assets. In its reexamination of this accounting for private companies, the PCC found that separate information on certain customer-related intangible assets is not decision-useful because the assets may not be transferable and estimates of their fair values are highly subjective. As a result, the PCC recommended, and the FASB endorsed, an alternative that, if elected, indicates that private company acquirers shall not recognize separately from goodwill the following intangible assets. • Customer-related intangible assets unless they are capable of being sold or licensed independently from other assets of a business. • Non-competition agreements. Examples of customer-related intangible assets include (1) mortgage servicing rights, (2) commodity supply contracts, (3) core deposits, and (4) customer information (for example, names and contact information). Alternative Accounting Example To illustrate in the context of the Tractorling example in Chapter 11, recall that goodwill is recorded only when an entire business is purchased. To record goodwill, a company compares the fair value of the net tangible and identifiable intangible assets with the purchase price of the acquired business. The difference is considered goodwill. Goodwill is the residual-the excess of cost over fair value of the A-2 < ૨ 3 MORGON < > MAN W A.2 Priv... MAN G MORGAN M ists A M ILLUSTRATION A.1 Determination of Goodwill-Master Valuation Approach Diversified records this transaction as follows. Cash Accounts Receivable Inventory Property, Plant, and Equipment Patents Σ Cash $ 25,000 Accounts receivable 35,000 Inventory 122,000 Property, plant, and equipment, net 205,000 Assigned to Patents 18,000 purchase price Liabilities (55,000) of $400,000 Fair value of net identifiable assets Purchase price 350,000 400,000 Value assigned to goodwill $ 50,000 25,000 35,000 122,000 205,000 18,000 50,000 Σ O Goodwill Liabilities Cash 55,000 400,000 To illustrate the private company alternative, assume that instead of patents, Tractorling employees had a non-compete agreement with Tractorling management that would preclude them from working for any competing companies for one year following the acquisition (with an estimated fair value of $18,000) should they leave the company. Such agreements are common in business combinations to ensure a smooth transition period. • If Diversified was a public company, as with the patents, it would recognize this non-compete agreement separately from goodwill on the post-acquisition balance sheet. halance • However, a private company that chooses the alternative accounting would not recognize a separate intangible asset for the non-compete agreement but instead include the $18,000 in the Goodwill A-3 ☹d < > D W A.2 Priv... G M MORGAN Diversified records this transaction as follows. Cash Accounts Receivable Inventory 防 ists K M Σ 25,000 35,000 122,000 205,000 18,000 50,000 Σ Liabilities Cash 55,000 400,000 To illustrate the private company alternative, assume that instead of patents, Tractorling employees had a non-compete agreement with Tractorling management that would preclude them from working for any competing companies for one year following the acquisition (with an estimated fair value of $18,000) should they leave the company. Such agreements are common in business combinations to ensure smooth transition period. • If Diversified was a public company, as with the patents, it would recognize this non-compete agreement separately from goodwill on the post-acquisition balance sheet. • However, a private company that chooses the alternative accounting would not recognize a separate intangible asset for the non-compete agreement but instead include the $18,000 in the Goodwill balance. That is, rather than the entry recorded above, a private company would make the following entry. Cash Accounts Receivable Inventory Property, Plant, and Equipment 25,000 35,000 122,000 205,000 68,000 २ Property, Plant, and Equipment Patents Goodwill G Goodwill Liabilities Cash 55,000 400,000 Note that the Goodwill balance ($50,000+ $18,000) includes the amount attributed to the non-compete agreement. Private companies that elect this accounting alternative must also elect the private company alternative to amortize goodwill (discussed in the next section). Accounting for Goodwill A-3 ດ २ E B R < > W A.2 Priv... MOAN G Accounting for Goodwill read.wiley.com M ists M M + G h B A L ve an The FASB also issued guidance developed with the PCC that provides an alternative for private companies in the accounting for goodwill. 3 Under the alternative, rather than considering goodwill to indefinite life, private companies can elect to amortize goodwill on a straight-line basis over a period not to exceed 10 years. In addition, goodwill under this alternative will be tested for impairment ☐ triggering event occurs and based on a comparison of the carrying value of the goodwill to the fair value of the company or reporting unit. Additional Background a As discussed in Chapter 11, companies consider goodwill to have an indefinite life and therefore should not amortize it. Although goodwill may decrease in value over time, predicting the actual life of goodwi and an appropriate pattern of amortization is extremely difficult. In addition, investors find the amortization charge of little use in evaluating financial performance. Furthermore, the investment community wants to know the amount invested in goodwill, which often is the largest intangible asset on a company's balance sheet. Therefore, companies adjust its carrying value only when goodwill is impaired. As part of its research and outreach efforts on intangible assets and goodwill, the PCC obtained feedback from private company stakeholders that the benefits of the current accounting for goodwill after initia recognition do not justify the related costs. Feedback from users of private company financial statements indicated that the current goodwill impairment test provides limited decision-useful information because most users of private company financial statements generally disregard goodwill and goodwill impairment losses in their analysis of a private company's financial condition and operating performance The PCC also received input from preparers and auditors of private company financial statements indicating concerns about the cost and complexity involved in performing the current goodwill impairment test. Even though the recent introduction of the optional qualitative assessment has provided some cost reduction in testing goodwill for impairment, many of those stakeholders stated that the level of cost reduction has not been significant. Private Company Alternative In response to this input, the PCC proposed (and the FASB endorsed) an alternative accounting for private companies. Under the alternative, private companies that elect the accounting alternative will: 1. Amortize goodwill on a straight-line basis over 10 years, or less than 10 years if a shorter useful life is more appropriate. 2. Test goodwill for impairment when a triggering event occurs that indicates that the fair value of a company (or a reporting unit) may be below its carrying amount. When a triggering event occurs, a company has the option to first assess qualitative factors to determine whether the quantitative impairment test is necessary. If that qualitative assessment indicates that it is more likely than not that goodwill is impaired, the company must perform the quantitative test to compare the company's fair value with its carrying amount, including goodwill (or the fair value of the reporting unit with the carrying amount, including goodwill, of the reporting unit). If the qualitative assessment indicates that it is not more likely than not that goodwill is impaired, further testing is unnecessary. The goodwill impairment loss cannot exceed the company's (or the reporting unit's) carrying amount of goodwill. Alternative Accounting Example Private Company Accounting To illustrate the accounting under the private company alternative, refer to our Trenting exemple in the prior section, in which Diversified recorded goodwill of $68,000 (including the value of the non- compete agreement for Tractorling management). Under the private company alta, tum life of 10 years, Diversified will amortize goodwill through the following entry each year following the acquisition. Amortization Expense ($68,000 ÷ 10) Goodwill 6,800 6,800 < > Going forward, the recorded goodwill is evaluated for impairment only if there is a triggering event that indicates that the goodwill's fair value may be less than the carrying value. Thus, the alternative ccountine is similar to the accounting for limited life intangible assets 4 A-4/nAPPENDIX B (continued) d. What recommendation does the SEC request to resolve the issue? Response: IV. AMERICAN EXPRESS CO a. What filing or disclosure is the comment letter related to (for example, if the letter relates to the 10-K, what section of the 10-K does it relate to)? Response: b. Does the letter indicate that the disclosure violates Regulation G and/or Regulation S-K? If so, which one? Response: c. What are the specific issues with the non-GAAP reporting outlined in the letter? Use your own words to paraphrase/summarize rather than copying and pasting the wording verbatim from the letter. Response: d. What recommendation does the SEC request to resolve the issue? Response: Activity 3: FASB Conceptual Framework Predictive Value FUNDAMENTAL CHARACTERISTICS Relevance Confirmatory Value Completeness Materiality Faithful Representation Neutrality Free from Error (continued on next page)/nAPPENDIX B (continued) b. What is the equivalent GAAP measure? What is the dollar value of the GAAP measure? (hint: use the link in the tweet, which can also be found at https://twitter.com/FedEx/status/1504559854614106114? cxt=HHwWhMCy2evNouEPAAAA) Response: c. Is the non-GAAP measure higher or lower (in dollar value) than the GAAP measure? Response: d. Explain potential benefits investors may get from the disclosure of this non-GAAP measure. Focus on how the format and delivery of the disclosure may help inform the investing decisions of these stakeholders, rather than whether the particular disclosure would increase or decrease the likelihood of investing. Response: e. Explain a potential issue with this disclosure to investors. Focus on how the format and delivery of the dis- closure may help inform the investing decisions of these stakeholders, rather than whether the particular disclosure would increase or decrease the likelihood of investing. Response: vity 2: SEC Comment Letters I. CHEWY, INC. a. What filing or disclosure is the comment letter related to (for example, if the letter relates to the 10-K, what section of the 10-K does it relate to)? Response: b. Does the letter indicate that the disclosure violates Regulation G and/or Regulation S-K? If so, which one? Response: c. What are the specific issues with the non-GAAP reporting outlined in the letter? Use your own words to paraphrase/summarize rather than copying and pasting the wording verbatim from the letter. Response: d. What recommendation does the SEC request to resolve the issue? Response: II. CISCO SYSTEMS, INC. a. What filing or disclosure is the comment letter related to (for example, if the letter relates to the 10-K, what section of the 10-K does it relate to)? Response: b. Does the letter indicate that the disclosure violates Regulation G and/or Regulation S-K? If so, which one? Response: c. What are the specific issues with the non-GAAP reporting outlined in the letter? Use your own words to paraphrase/summarize rather than copying and pasting the wording verbatim from the letter. Response: d. What recommendation does the SEC request to resolve the issue? Response: III. TJX COMPANIES INC/DE/ a. What filing or disclosure is the comment letter related to (for example, if the letter relates to the 10-K, what section of the 10-K does it relate to)? Response: b. Does the letter indicate that the disclosure violates Regulation G and/or Regulation S-K? If so, which one? Response: c. What are the specific issues with the non-GAAP reporting outlined in the letter? Use your own words to paraphrase/summarize rather than copying and pasting the wording verbatim from the letter. Response:/nAPPENDIX B Student Template Activity 1: GAAP and Non-GAAP Measures Reported by Companies Non-GAAP Measures in Company Annual Reports 1. PepsiCo, Inc.'s non-GAAP measures included in 2020 10-K Management's Discussion and Analysis (MD&A) a. What are the names of the non-GAAP measures you identified? What are the dollar or numeric values of these measures? Response: b. What are the equivalent GAAP measures for the non-GAAP measures you identified in Part a? What are the dollar or numeric values of the GAAP measures? Response: c. Are the non-GAAP measures you located in Part a higher or lower (in dollar or numeric value) than the equivalent GAAP measures you identified in Part b? Response: d. What are the main items being added or subtracted from the GAAP measures to calculate the non-GAAP measures (e.g., are there specific expense/revenue items that are added or subtracted)? Response: e. Explain potential benefits investors may get from the disclosure these non-GAAP measures. Focus on how the disclosures may help inform the investing decisions of these stakeholders, rather than whether the par- ticular disclosures would increase or decrease the likelihood of investing. Response: 2. Coca-Cola, Inc.'s versus PepsiCo, Inc.'s non-GAAP measures Explain potential issues with Pepsi including non-GAAP measures and Coca-Cola excluding non-GAAP mea- sures in these communications to investors. Also explain any other potential issues with how Pepsi has reported these non-GAAP measures. Focus on how the disclosures may help inform the investing decisions of these stake- holders, rather than whether the particular disclosures would increase or decrease the likelihood of investing. Response: Non-GAAP Measures in Other Disclosure Mediums 1. FedEx Tweet a. What is the dollar value of Adjusted Net Income (a non-GAAP measure) in Q3 of FY22 by FedEx reported in the tweet? Response:See Answer
  • Q13:/n1. What are the relevant facts about Worldcom scandel? 2. What are the ethical issues as identified in AICPA Code of Professional Conduct which related to WorldCome case? Please remember to cite the source: the essay must correctly cite relevant authoritative or non-authoritative resources WorldCom was founded by Bernard Ebbers among its early investors in 1983. During the company's susscessfull time, WorldCom emerged as one of the leading telecommunications company in the United States, which was offering discounted long- distance services. However, during 2001 and 2002, to make company's financial statements look good and attrachtive with the investors, WorldCom used questionable accounting techniques to try to hide the company losses from investors. WorldCom inflated net income and cash flow by recording expenses as investments in order to hide its falling profitability. By capitalizing expenses, Worldcom exaggerated profits by $3.8 billion in 2001 and $797 million in the first quarter of 2002. By the results, Worldcom was able to report a profit of $1.4 billion instead of showing a net loss of $1.4 bilion (Hayes, 2023). There were numerous key individuals and entities were implicated in the WorldCom scandal, which were including CEO Bernie Ebbers, CFO Scott Sullivan, and the company's auditing firm, Arthur Andersen. The Wall Street analyst Jack Grubman also contributed to the misconduct by providing favorable ratings for the telecom company (Hayes, 2023). Consequently, WorldCom filed for bankruptcy as a result of the scandal revealing. Bernard Ebbers was convicted of securities fraud and sentenced to 25 years in prison in 2005. Former CFO Scott Sullivan received a five-year jail term after pleading guilty and cooperating with authorities. Jack Grubman was terminated from his position at Salomon Smith Barney and fined $15 million by the SEC, in addition to being barred from participating in securities exchanges. In the WorldCom scandal, the Report of Investigation by the Special Investigative Committee of the Board of Directors of Worldcom, Inc. revealed that the company did not have a code of ethics in 2001. According to the Board of Directors, the only mention of ethics among its staff was a section in the Employee Handbook, which briefly advised against fraud and dishonesty, stating that such behavior would not be allowed, and advised employees to report any unlawful or unethical behavior to their managers and/or the Human Resources department. WorldCom only began drafting the Code of Ethics in early 2000. During the period from May 2001 to January 2002, legal counsel distributed drafts of the Code of Ethics to several senior managers. This report gained approval from Sullivan and other executives to complete the document. However, when presented with a draft, Ebbers purportedly dismissed the idea of a Code of Ethics, stating that it was a significant waste of time. It wasn't until after the fraud was exposed that the Company officially embraced a Code of Business Ethics in the Fall of 2002, making it accessible on WorldCom's internal website by early October 2002 (Beresford, Katzenbach, & Rogers, 2003)See Answer
  • Q14:2. What are the ethical issues as identified in AICPA Code of Professional Conduct which related to WorldCome case? Please remember to cite the source: the essay must correctly cite relevant authoritative or non-authoritative resources WorldCom was founded by Bernard Ebbers among its early investors in 1983. During the company's susscessfull time, WorldCom emerged as one of the leading telecommunications company in the United States, which was offering discounted long- distance services. However, during 2001 and 2002, to make company's financial statements look good and attrachtive with the investors, WorldCom used questionable accounting techniques to try to hide the company losses from investors. WorldCom inflated net income and cash flow by recording expenses as investments in order to hide its falling profitability. By capitalizing expenses, Worldcom exaggerated profits by $3.8 billion in 2001 and $797 million in the first quarter of 2002. By the results, Worldcom was able to report a profit of $1.4 billion instead of showing a net loss of $1.4 bilion (Hayes, 2023). There were numerous key individuals and entities were implicated in the WorldCom scandal, which were including CEO Bernie Ebbers, CFO Scott Sullivan, and the company's auditing firm, Arthur Andersen. The Wall Street analyst Jack Grubman also contributed to the misconduct by providing favorable ratings for the telecom company (Hayes, 2023). Consequently, WorldCom filed for bankruptcy as a result of the scandal revealing. Bernard Ebbers was convicted of securities fraud and sentenced to 25 years in prison in 2005. Former CFO Scott Sullivan received a five-year jail term after pleading guilty and cooperating with authorities. Jack Grubman was terminated from his position at Salomon Smith Barney and fined $15 million by the SEC, in addition to being barred from participating in securities exchanges. In the WorldCom scandal, the Report of Investigation by the Special Investigative Committee of the Board of Directors of Worldcom, Inc. revealed that the company did not have a code of ethics in 2001. According to the Board of Directors, the only mention of ethics among its staff was a section in the Employee Handbook, which briefly advised against fraud and dishonesty, stating that such behavior would not be allowed, and advised employees to report any unlawful or unethical behavior to their managers and/or the Human Resources department. WorldCom only began drafting the Code of Ethics in early 2000. During the period from May 2001 to January 2002, legal counsel distributed drafts of the Code of Ethics to several senior managers. This report gained approval from Sullivan and other executives to complete the document. However, when presented with a draft, Ebbers purportedly dismissed the idea of a Code of Ethics, stating that it was a significant waste of time. It wasn't until after the fraud was exposed that the Company officially embraced a Code of Business Ethics in the Fall of 2002, making it accessible on WorldCom's internal website by early October 2002 (Beresford, Katzenbach, & Rogers, 2003)/nSee Answer
  • Q15:/nQ2. Review the cash narrative memo (C.1.1) and cash flowcharts (C.1.2). Identify and document any internal control weaknesses over cash receipts, cash disbursements, bank reconciliation, and/or petty cash. Explain why each item identified is a weakness. This question relates to Step 2 of the Garcia and Foster Audit Plan. Q3. Based on your review of the cash testing of controls procedures (workpapers C.2.1 to C.2.11), you believe that there were some issues with the audit work performed. Review in detail the auditing procedures from the audit program and the related documentation. Identify any of the following issues: a. Did they perform all of the steps associated with the audit program? b. Did they perform the steps accurately? If not, describe the problem and follow up on it to the extent possible with the information given. c. Do you see any other issues or problems with the auditors' work or client documentation? This question relates to Step 4 of the Garcia and Foster Audit Plan. Q4. You have concerns about the adequacy of the substantive audit work done by the engagement team. Review in detail the cash confirmation and bank reconciliation substantive audit program steps (C.3 and C.4) and the associated audit workpapers (C.3.1 to C.4.8). Identify any of the following issues: a. Did they perform all of the steps associated with the audit program?See Answer
  • Q16:/n Form 4797 Department of the Treasury Internal Revenue Service Name(s) shown on return Sales of Business Property (Also Involuntary Conversions and Recapture Amounts Under Sections 179 and 280F(b)(2)) Attach to your tax return. Go to www.irs.gov/Form4797 for instructions and the latest information. OMB No. 1545-0184 2023 Attachment Sequence No. 27 Identifying number 1a Enter the gross proceeds from sales or exchanges reported to you for 2023 on Form(s) 1099-B or 1099-S (or substitute statement) that you are including on line 2, 10, or 20. See instructions 1a . b Enter the total amount of gain that you are including on lines 2, 10, and 24 due to the partial dispositions of MACRS assets 1b C . Enter the total amount of loss that you are including on lines 2 and 10 due to the partial dispositions of MACRS assets 1c Part I Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft-Most Property Held More Than 1 Year (see instructions) 2 (a) Description of property (b) Date acquired (mo., day, yr.) (c) Date sold (mo., day, yr.) (d) Gross sales price (e) Depreciation allowed or allowable since acquisition (f) Cost or other basis, plus improvements and expense of sale (g) Gain or (loss) Subtract (f) from the sum of (d) and (e) 3 Gain, if any, from Form 4684, line 39 4 Section 1231 gain from installment sales from Form 6252, line 26 or 37 5 Section 1231 gain or (loss) from like-kind exchanges from Form 8824 6 Gain, if any, from line 32, from other than casualty or theft . 7 34 5 6 Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows Partnerships and S corporations. Report the gain or (loss) following the instructions for Form 1065, Schedule K, line 10, or Form 1120-S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below. Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you didn't have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on the Schedule D filed with your return and skip lines 8, 9, 11, and 12 below. Nonrecaptured net section 1231 losses from prior years. See instructions 7 8 8 9 Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero, enter the gain from line 7 on line 12 below. If line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long-term capital gain on the Schedule D filed with your return. See instructions 9 Ordinary Gains and Losses (see instructions) Part II 10 Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less): 11 Loss, if any, from line 7 12 Gain, if any, from line 7 or amount from line 8, if applicable. 13 Gain, if any, from line 31. 14 Net gain or (loss) from Form 4684, lines 31 and 38a. 15 Ordinary gain from installment sales from Form 6252, line 25 or 36 16 17 Ordinary gain or (loss) from like-kind exchanges from Form 8824 Combine lines 10 through 16 18 For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines a and b below. For individual returns, complete lines a and b below. a If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part of the loss here. Enter the loss from income-producing property on Schedule A (Form 1040), line 16. (Do not include any loss on property used as an employee.) Identify as from "Form 4797, line 18a." See instructions b Redetermine the gain or (loss) on line 17 excluding the loss, if any, on line 18a. Enter here and on Schedule 1 (Form 1040), Part I, line 4 For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 130861 11 12 13 14 15 16 17 18a 18b Form 4797 (2023) Form 4797 (2023) Part III 19 A Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255 (see instructions) (a) Description of section 1245, 1250, 1252, 1254, or 1255 property: (b) Date acquired (mo., day, yr.) B с D Page 2 (c) Date sold (mo., day, yr.) Property A Property B 2222 20 These columns relate to the properties on lines 19A through 19D. Gross sales price (Note: See line 1a before completing.) . 21 Cost or other basis plus expense of sale. Property C Property D 23 Depreciation (or depletion) allowed or allowable Adjusted basis. Subtract line 22 from line 21. 2222 20 21 23 25 224 Total gain. Subtract line 23 from line 20 If section 1245 property: a Depreciation allowed or allowable from line 22 b Enter the smaller of line 24 or 25a 24 25a 25b 26 If section 1250 property: If straight line depreciation was used, enter -0- on line 26g, except for a corporation subject to section 291. a Additional depreciation after 1975. See instructions 26a b Applicable percentage multiplied by the smaller of line 24 or line 26a. See instructions 26b C Subtract line 26a from line 24. If residential rental property or line 24 isn't more than line 26a, skip lines 26d and 26e 26c d Additional depreciation after 1969 and before 1976 26d . e Enter the smaller of line 26c or 26d 26e of Section 291 amount (corporations only) 26f g Add lines 26b, 26e, and 26f 26g 27 If section 1252 property: Skip this section if you didn't dispose of farmland or if this form is being completed for a partnership. a Soil, water, and land clearing expenses 27a b Line 27a multiplied by applicable percentage. See instructions 27b C Enter the smaller of line 24 or 27b 27c 28 If section 1254 property: a Intangible drilling and development costs, expenditures for development of mines and other natural deposits, mining exploration costs, and depletion. See instructions 28a b Enter the smaller of line 24 or 28a 28b 29 If section 1255 property: a Applicable percentage of payments excluded from income under section 126. See instructions 29a . 29b b Enter the smaller of line 24 or 29a. See instructions Summary of Part III Gains. Complete property columns A through D through line 29b before going to line 30. 30 Total gains for all properties. Add property columns A through D, line 24 30 31 Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b. Enter here and on line 13 31 32 Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion from other than casualty or theft on Form 4797, line 6 32 Part IV Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less (see instructions) (a) Section 179 (b) Section 280F(b)(2) 33 34 Section 179 expense deduction or depreciation allowable in prior years Recomputed depreciation. See instructions 33 34 . 35 Recapture amount. Subtract line 34 from line 33. See the instructions for where to report 35 Form 4797 (2023)/n Form 1125-A (Rev. November 2018) Department of the Treasury Internal Revenue Service Name Cost of Goods Sold ► Attach to Form 1120, 1120-C, 1120-F, 1120S, or 1065. ► Go to www.irs.gov/Form1125A for the latest information. OMB No. 1545-0123 Employer identification number 1 Inventory at beginning of year 2 Purchases 3 Cost of labor 4 Additional section 263A costs (attach schedule) 5 Other costs (attach schedule) 6 Total. Add lines 1 through 5. 7 Inventory at end of year 8 123 45 Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2 or the appropriate line of your tax return. See instructions 10. 6 7 00 8 9a Check all methods used for valuing closing inventory: (i) Cost (ii) Lower of cost or market (iii) Other (Specify method used and attach explanation.) b Check if there was a writedown of subnormal goods с Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) ☐ ☐ d If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO . 9d e f If property is produced or acquired for resale, do the rules of section 263A apply to the entity? See instructions Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If "Yes," attach explanation Yes No Yes No Section references are to the Internal Revenue Code unless otherwise noted. What's New Small business taxpayers. For tax years beginning after December 31, 2017, the following apply. • A small business taxpayer (defined below), may use a method of accounting for inventories that either: (1) treats inventories as nonincidental materials and supplies, or (2) conforms to the taxpayer's financial accounting treatment of inventories. • A small business taxpayer is not required to capitalize costs under section 263A. General Instructions Purpose of Form Use Form 1125-A to calculate and deduct cost of goods sold for certain entities. Who Must File Filers of Form 1120, 1120-C, 1120-F, 1120S, or 1065, must complete and attach Form 1125-A if the applicable entity reports a deduction for cost of goods sold. Inventories Generally, inventories are required at the beginning and end of each tax year if the production, purchase, or sale of merchandise is an income-producing factor. See Regulations section 1.471-1. If inventories are required, you generally must use an accrual method of accounting for sales and purchases of inventory items. Exception for certain taxpayers. A small business taxpayer (defined below), can adopt or change its accounting method to account for inventories in the same manner as material and supplies that are non- incidental, or conform to its treatment of inventories in an applicable financial statement (as defined in section 451(b)(3)), or if it does not have an applicable financial statement, the method of accounting used in its books and records prepared in accordance with its accounting procedures. See section 471(c)(3). A small business taxpayer claiming exemption from the requirement to keep inventories is changing its method of accounting for purposes of section 481. For additional guidance on this method of accounting, see Pub. 538, Accounting Periods and Methods. For guidance on changing to this method of accounting, see Form 3115 and the Instructions for Form 3115. Small business taxpayer. A small business taxpayer is a taxpayer that (a) has average annual gross receipts of $25 million or less (indexed for inflation) for the 3 prior tax years, and (b) is not a tax shelter (as defined in section 448(d)(3)). See Pub. 538. Uniform capitalization rules. The uniform capitalization rules of section 263A generally require you to capitalize, or include in inventory, certain costs incurred in connection with the following. • The production of real property and tangible personal property held in inventory or held for sale in the ordinary course of business. • Real property or personal property (tangible and intangible) acquired for resale. • The production of real property and tangible personal property for use in its trade or business or in an activity engaged in for profit. A small business taxpayer (defined above) is not required to capitalize costs under section 263A. See section 263A(i). See the discussion on section 263A uniform capitalization rules in the instructions for your tax return before completing Form 1125-A. Also see Regulations sections 1.263A-1 through 1.263A-3. See Regulations section 1.263A-4 for rules for property produced in a farming business. For Paperwork Reduction Act Notice, see instructions. Cat. No. 55988R Form 1125-A (Rev. 11-2018) Form 1125-A (Rev. 11-2018) Specific Instructions Line 1. Inventory at Beginning of Year If you are changing your method of accounting for the current tax year, you must refigure last year's closing inventory using the new method of accounting. Enter the result on line 1. If there is a difference between last year's closing inventory and the refigured amount, attach an explanation and take it into account when figuring any section 481(a) adjustment. Line 2. Purchases Reduce purchases by items withdrawn for personal use. For a partnership, the cost of these items should be shown on Schedule K and Schedule K-1 as distributions to partners. Line 4. Additional Section 263A Costs If you elected a simplified method of accounting, enter on line 4 the balance of section 263A costs paid or incurred during the tax year not includible on lines 2, 3, and 5. If you elected the simplified production method, additional section 263A costs are generally those costs, other than interest, that were not capitalized under your method of accounting immediately prior to the effective date of section 263A, but are now required to be capitalized under section 263A. For details, see Regulations section 1.263A-2(b). If you elected the simplified resale method, additional section 263A costs are generally those costs incurred with respect to the following categories. • Off-site storage or warehousing. • Purchasing. Handling, such as processing, assembling, repackaging, and transporting. • General and administrative costs (mixed service costs). Line 5. Other Costs Enter on line 5 any costs paid or incurred during the tax year not entered on lines 2 through 4. Attach a statement listing details of the costs. Special Rules for Cooperatives Cooperatives are allowed to deduct certain per-unit retain allocations. Include these costs on line 5. Attach a statement listing details of per-unit retain allocations paid in: • Qualified per-unit retain certificates, • Money or other property (except nonqualified per-unit certificates), and • Nonqualified per-unit retain certificates redeemed this year. Per-unit retain allocations. A cooperative is allowed to deduct from its taxable income amounts paid during the payment period for the tax year as per-unit retain allocations to the extent paid in money, qualified per-unit retain certificates, or other property with respect to marketing occurring during the tax year. A per-unit retain allocation is any allocation from a cooperative to a patron for products marketed for him without reference to the cooperative net earnings. A qualified per- unit retain certificate is any per-unit retain certificate that the distributee has agreed to take into account at its stated dollar amount. Nonqualified per-unit retain certificates redeemed this year. Include the amount paid in money or other property (except amounts already included as per-unit retain certificates) to patrons to redeem nonqualified per-unit retain certificates. No deduction is allowed at the time of issuance for a nonqualified per-unit retain certificate. However, the cooperative may take a deduction in the year the certificate is redeemed, subject to the stated dollar amount of the certificate. See section 1383. Also see the instructions for Form 1120-C, line 30h, for a special rule for figuring the cooperative's tax in the year of redemption of a nonqualified per-unit retain certificate. Line 7. Inventory at End of Year See Regulations sections 1.263A-1 through 1.263A-3 for details on figuring the amount of additional section 263A costs to be included in ending inventory. Line 8. Cost of Goods Sold Enter the amount from line 8 on your tax return as follows. Filers of Form 1120, 1120-C, 1120S, and 1065, enter cost of goods sold on page 1, line 2. Filers of Form 1120-F, enter cost of goods sold on Section II, line 2. Lines 9a Through 9f. Inventory Valuation Methods Inventories can be valued at: • Cost, • Cost or market value (whichever is lower), or • Any other method approved by the IRS that conforms to the requirements of the applicable regulations cited below. Page 2 Filers that use erroneous valuation methods must change to a method permitted for federal income tax purposes. Use Form 3115 to make this change. See the Instructions for Form 3115. Also see Pub. 538. Line 9a. Method of valuing closing inventory. On line 9a, check the method(s) used for valuing inventories. Under lower of cost or market, the term "market" (for normal goods) means the current bid price prevailing on the inventory valuation date for the particular merchandise in the volume usually purchased by the filer. For a manufacturer, market applies to the basic elements of cost-raw materials, labor, and burden. If section 263A applies, the basic elements of cost must reflect the current bid price of all direct costs and all indirect costs properly allocable to goods on hand at the inventory date. Inventory may be valued below cost when the merchandise is unsalable at normal prices or unusable in the normal way because the goods are subnormal due to damage, imperfections, shopwear, change of style, odd or broken lots, or other similar causes, including second- hand goods taken in exchange. The goods may be valued at the bona fide selling price, minus the direct cost of disposition (but not less than scrap value). Bona fide selling price means actual offering of goods during a period ending not later than 30 days after inventory date. Lines 9c and 9d. LIFO method. If this is the first year the Last-in, First-out (LIFO) inventory method was either adopted or extended to inventory goods not previously valued under the LIFO method provided in section 472, attach Form 970, Application To Use LIFO Inventory Method, or a statement with the information required by Form 970. Check the LIFO box on line 9c. On line 9d, enter the amount of total closing inventories computed under section 472. Estimates are acceptable. If you changed or extended your inventory method to LIFO and had to write up the opening inventory to cost in the year of election, report the effect of the write-up as other income, on your applicable return, proportionately over a 3-year period that begins with the year of the LIFO election. Form 1125-A (Rev. 11-2018) Note: Entities using the LIFO method that make an S corporation election or transfer LIFO inventory to an S corporation in a nonrecognition transaction may be subject to an additional tax attributable to the LIFO recapture amount. See the instructions for Form 1120, Schedule J, line 11. Line 9e. If property is produced or acquired for resale and the rules of section 263A apply to the corporation, cooperative, partnership, or other applicable entity, check the "Yes" box on line 9e. Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. Page 3 The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for business taxpayers filing this form is approved under OMB control number 1545-0123 and is included in the estimates shown in the instructions for their business income tax return. If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed./n M N Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service 2023 Final K-1 Amended K-1 651123 OMB No. 1545-0123 |Part III Partner's Share of Current Year Income, Deductions, Credits, and Other Items 1 Ordinary business income (loss) 14 Self-employment earnings (loss) For calendar year 2023, or tax year beginning / / 2023 2 ending Net rental real estate income (loss) Partner's Share of Income, Deductions, Credits, etc. 3 Other net rental income (loss) 15 Credits See separate instructions. Part I A Information About the Partnership Partnership's employer identification number 4a Guaranteed payments for services 4b Guaranteed payments for capital 16 Schedule K-3 is attached if checked B Partnership's name, address, city, state, and ZIP code 4c Total guaranteed payments 17 Alternative minimum tax (AMT) items 5 Interest income с IRS center where partnership filed return: D Check if this is a publicly traded partnership (PTP) 6a Ordinary dividends Part II Information About the Partner E Partner's SSN or TIN (Do not use TIN of a disregarded entity. See instructions.) 6b Qualified dividends 18 Tax-exempt income and nondeductible expenses F Name, address, city, state, and ZIP code for partner entered in E. See instructions. 6c Dividend equivalents 7 Royalties G General partner or LLC member-manager Limited partner or other LLC member 8 Net short-term capital gain (loss) 19 Distributions H1 Domestic partner Foreign partner 9a Net long-term capital gain (loss) H2 If the partner is a disregarded entity (DE), enter the partner's: 9b TIN Name Collectibles (28%) gain (loss) 20 Other information J H21 11 What type of entity is this partner? 12 If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here Partner's share of profit, loss, and capital (see instructions): 9c Unrecaptured section 1250 gain Beginning Ending 10 Net section 1231 gain (loss) Profit Loss Capital Check if decrease is due to: Sale or K1 Partner's share of liabilities: % % % % % 11 Other income (loss) % Exchange of partnership interest. See instructions. 12 Section 179 deduction 21 Foreign taxes paid or accrued Beginning Ending Nonrecourse $ $ 13 Other deductions Qualified nonrecourse financing $ Recourse $ $ $ K2 21 Check this box if item K1 includes liability amounts from lower-tier partnerships K3 Check if any of the above liability is subject to guarantees or other payment obligations by the partner. See instructions L Partner's Capital Account Analysis Beginning capital account $ . Capital contributed during the year . $ Current year net income (loss) . $ Other increase (decrease) (attach explanation) $ Withdrawals and distributions Ending capital account $ ( $ Did the partner contribute property with a built-in gain (loss)? Yes No If "Yes," attach statement. See instructions. Partner's Share of Net Unrecognized Section 704(c) Gain or (Loss) Beginning 22 23 ☐ ☐ More than one activity for at-risk purposes* More than one activity for passive activity purposes* *See attached statement for additional information. For IRS Use Only Ending $ $ For Paperwork Reduction Act Notice, see the Instructions for Form 1065. www.irs.gov/Form1065 Cat. No. 11394R Schedule K-1 (Form 1065) 2023/n SCHEDULE D (Form 1065) Department of the Treasury Internal Revenue Service Name of partnership Capital Gains and Losses Attach to Form 1065 or Form 8865. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. Go to www.irs.gov/Form 1065 for instructions and the latest information. OMB No. 1545-0123 2023 Employer identification number Yes No Did the partnership dispose of any investment(s) in a qualified opportunity fund during the tax year? If "Yes," attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. Part I Short-Term Capital Gains and Losses — Generally Assets Held One Year or Less (see instructions) See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b 1b Totals for all transactions reported on Form(s) 8949 with Box A checked 2 Totals for all transactions reported on Form(s) 8949 with Box B checked 3 Totals for all transactions reported on Form(s) 8949 with Box C checked (d) Proceeds (sales price) (e) Cost (or other basis) 4 Short-term capital gain from installment sales from Form 6252, line 26 or 37. 5 Short-term capital gain or (loss) from like-kind exchanges from Form 8824 (g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g) 4 (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) 5 6 Partnership's share of net short-term capital gain (loss), including specially allocated short-term capital gains (losses), from other partnerships, estates, and trusts 6 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). Enter here and on Form 1065, Schedule K, line 8 or 11; or Form 8865, Schedule K, line 8 or 11. Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) See instructions for how to figure the amounts to enter on the lines below. 7 (d) Proceeds (sales price) (e) Cost (or other basis) (g) Adjustments to gain or loss from Form(s) 8949, Part II, line 2, column (g) (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) This form may be easier to complete if you round off cents to whole dollars. 8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b 8b Totals for all transactions reported on Form(s) 8949 with Box D checked 9 Totals for all transactions reported on Form(s) 8949 with Box E checked 10 Totals for all transactions reported on Form(s) 8949 with Box F checked 11 Long-term capital gain from installment sales from Form 6252, line 26 or 37 12 Long-term capital gain or (loss) from like-kind exchanges from Form 8824 11 12 13 Partnership's share of net long-term capital gain (loss), including specially allocated long-term capital gains (losses), from other partnerships, estates, and trusts 13 14 Capital gain distributions (see instructions) 14 15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Enter here and on Form 1065, Schedule K, line 9a or 11; or Form 8865, Schedule K, line 9a or 11 15 For Paperwork Reduction Act Notice, see the Instructions for Form 1065. Cat. No. 11393G Schedule D (Form 1065) 2023/n SCHEDULE B-1 (Form 1065) (Rev. August 2019) Department of the Treasury Internal Revenue Service Name of partnership Part I OMB No. 1545-0123 Information on Partners Owning 50% or More of the Partnership ►Attach to Form 1065. ► Go to www.irs.gov/Form 1065 for the latest information. Employer identification number (EIN) Entities Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 2a (Question 3a for 2009 through 2017)) Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, tax-exempt organization, or any foreign government that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Entity (ii) Employer Identification Number (if any) (iv) (iii) Type of Entity Country of Organization (v) Maximum Percentage Owned in Profit, Loss, or Capital Part II Individuals or Estates Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 2b (Question 3b for 2009 through 2017)) Complete columns (i) through (iv) below for any individual or estate that owns, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership (see instructions). (i) Name of Individual or Estate (ii) Identifying Number (iii) Country of Citizenship (see instructions) (if any) (iv) Maximum Percentage Owned in Profit, Loss, or Capital For Paperwork Reduction Act Notice, see the Instructions for Form 1065. Cat. No. 49842K Schedule B-1 (Form 1065) (Rev. 8-2019) Schedule B-1 (Form 1065) (Rev. 8-2019) General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Schedule B-1 (Form 1065) and its instructions, such as legislation enacted after the form and instructions were published, go to www.irs.gov/Form 1065. Purpose of Form Use Schedule B-1 (Form 1065) to provide the information applicable to certain entities, individuals, and estates that own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership. Who Must File Schedule B-1 (Form 1065) must be filed by all partnerships that answer "Yes" to question 2a or question 2b (question 3a or question 3b for 2009 through 2017) on Form 1065, Schedule B. Attach Schedule B-1 to Form 1065. Specific Instructions Part I Complete Part I if the partnership answered "Yes" to Form 1065, Schedule B, question 2a (question 3a for 2009 through 2017). List each corporation, partnership, trust, tax-exempt organization, or foreign government owning, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership at the end of the tax year. Enter the name, EIN, type of entity (corporation, partnership, trust, tax- exempt organization, or foreign government), country of organization, and the maximum percentage interests owned, directly or indirectly, in the profit, loss, or capital of the partnership. For an affiliated group filing a consolidated tax return, list the parent corporation rather than the subsidiary members. List the entity owner of a disregarded entity rather than the disregarded entity. If the owner of a disregarded entity is an individual rather than an entity, list the individual in Part II. In the case of a tax-exempt organization, enter "tax-exempt organization" in column (iii). Page 2 Example 1. Corporation A owns, directly, an interest of 50% in the profit, loss, or capital of Partnership B. Corporation A also owns, directly, an interest of 15% in the profit, loss, or capital of Partnership C. Partnership B owns, directly, an interest of 70% in the profit, loss, or capital of Partnership C. Therefore, Corporation A owns, directly or indirectly, an interest of 50% in the profit, loss, or capital of Partnership C (15% directly and 35% indirectly through Partnership B). On Partnership C's Form 1065, it must answer "Yes" to question 2a (question 3a for 2009 through 2017) of Schedule B. Partnership C must also complete Part I of Schedule B-1. In Part I, Partnership C must identify Corporation A, which includes entering "50%" in column (v) (its maximum percentage owned). It also must identify Partnership B, and enter "70%" in column (v). Part II Complete Part II if the partnership answered "Yes" to Form 1065, Schedule B, question 2b (question 3b for 2009 through 2017). List each individual or estate owning, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership at the end of the tax year. Enter the name, social security or employer identification number, country of citizenship (for an estate, the citizenship of the decedent), and the maximum percentage interests owned, directly or indirectly, in the profit, loss, or capital of the partnership. Example 2. A owns, directly, 50% of the profit, loss, or capital of Partnership X. B, the daughter of A, does not own, directly, any interest in X and does not own, indirectly, any interest in X through any entity (corporation, partnership, trust, or estate). Because family attribution rules apply only when an individual (in this example, B) owns a direct interest in the partnership or an indirect interest through another entity, A's interest in Partnership X is not attributable to B. On Partnership X's Form 1065, it must answer "Yes" to question 2b (question 3b for 2009 through 2017) of Schedule B. Partnership X must also complete Part II of Schedule B-1. In Part II, Partnership X must identify A, which includes entering "50%" in column (iv). Partnership X will not identify B in Part II./n Deductions (see instructions for limitations) Form 1065 Department of the Treasury Internal Revenue Service A Principal business activity U.S. Return of Partnership Income For calendar year 2023, or tax year beginning 2023, ending Go to www.irs.gov/Form 1065 for instructions and the latest information. Name of partnership B Principal product or service Type Number, street, and room or suite no. If a P.O. box, see instructions. or C Business code number Print City or town, state or province, country, and ZIP or foreign postal code 20 OMB No. 1545-0123 2023 D Employer identification number E Date business started G Check applicable boxes: (1) H Check accounting method: (1) Initial return Cash (2) Final return (2) ☐ Accrual | J Check if Schedules C and M-3 are attached (3) Name change (3) ☐ Other (specify): $ (4) Address change (5) Amended return Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year: . K Check if partnership: (1) ☐ Aggregated activities for section 465 at-risk purposes (2) Grouped activities for section 469 passive activity purposes Caution: Include only trade or business income and expenses on lines 1a through 23 below. See instructions for more information. Income F Total assets (see instructions) 1a Gross receipts or sales b Less returns and allowances c Balance 1c 2 Cost of goods sold (attach Form 1125-A) 2 3 Gross profit. Subtract line 2 from line 1c. 3 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) 4 5 Net farm profit (loss) (attach Schedule F (Form 1040)) 5 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) 6 7 Other income (loss) (attach statement) 7 8 Total income (loss). Combine lines 3 through 7 8 9 Salaries and wages (other than to partners) (less employment credits) 9 10 11 Guaranteed payments to partners Repairs and maintenance. 10 11 12 Bad debts. 12 13 Rent. 13 14 Taxes and licenses 14 15 Interest (see instructions) 15 16a Depreciation (if required, attach Form 4562). 16a b 17 Less depreciation reported on Form 1125-A and elsewhere on return Depletion (Do not deduct oil and gas depletion.) 16b 16c 17 18 Retirement plans, etc. 18 19 22222222222353 Employee benefit programs 19 20 Energy efficient commercial buildings deduction (attach Form 7205). 20 21 Other deductions (attach statement) Total deductions. Add the amounts shown in the far right column for lines 9 through 21 Ordinary business income (loss). Subtract line 22 from line 8 26 27 Other taxes (see instructions) 28 Total balance due. Add lines 24 through 27 29 Elective payment election amount from Form 3800 24 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) BBA AAR imputed underpayment (see instructions) 23 24 30 Payment (see instructions) 31 Amount owed. If the sum of line 29 and line 30 is smaller than line 28, enter amount owed Overpayment. If the sum of line 29 and line 30 is larger than line 28, enter overpayment 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 partner or limited liability company member) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below? See instructions. ☐ Yes No 26 27 29 30 31 32 222222222222258 Tax and Payment Sign Here Signature of partner or limited liability company member Date Print/Type preparer's name Preparer's signature Date PTIN Paid Preparer Firm's name Use Only Firm's address For Paperwork Reduction Act Notice, see separate instructions. Check self-employed Firm's EIN Phone no. if Cat. No. 11390Z Form 1065 (2023) Form 1065 (2023) Schedule B Other Information What type of entity is filing this return? Check the applicable box: 1 a Domestic general partnership b с Domestic limited liability company d e Foreign partnership f 2 At the end of the tax year: a Domestic limited partnership Domestic limited liability partnership Other: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax- exempt organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership 3 At the end of the tax year, did the partnership: 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? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) below (i) Name of Corporation (ii) Employer Identification Number (if any) Page 2 Yes No (iii) Country of Incorporation (iv) Percentage Owned in Voting Stock b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital 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 (v) below. (i) Name of Entity (ii) Employer Identification Number (if any) (iii) Type of Entity (iv) Country of Organization (v) Maximum Percentage Owned in Profit, Loss, or Capital 4 Does the partnership satisfy all four of the following conditions? a The partnership's total receipts for the tax year were less than $250,000. 5 6 7 8 9 b The partnership's total assets at the end of the tax year were less than $1 million. с Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule M-3 If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; item F on page 1 of Form 1065; or item L on Schedule K-1. Is this partnership a publicly traded partnership, as defined in section 469(k)(2)? During the tax year, did the partnership have any debt that was canceled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? . At any time during calendar year 2023, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See instructions for exceptions and filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). If "Yes," enter the name of the foreign country. At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions 10a Is the partnership making, or had it previously made (and not revoked), a section 754 election? If "Yes," enter the effective date of the election See instructions for details regarding a section 754 election. b For this tax year, did the partnership make an optional basis adjustment under section 743(b)? If "Yes," enter the total aggregate net positive amount $ and the total aggregate net negative amount $ (_ of such section 743(b) adjustments for all partners made in the tax year. The partnership must also attach a statement showing the computation and allocation of each basis adjustment. See instructions Yes No Form 1065 (2023) Form 1065 (2023) Schedule B 11 12 13 14 15 с Other Information (continued) For this tax year, did the partnership make an optional basis adjustment under section 734(b)? If "Yes," enter the total aggregate net positive amount $ and the total aggregate net negative amount $ (_ ) of such section 734(b) adjustments for all partnership property made in the tax year. The partnership must also attach a statement showing the computation and allocation of each basis adjustment. See instructions d For this tax year, is the partnership required to adjust the basis of partnership property under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If "Yes," enter the total aggregate amount of such section 743(b) adjustments and/or section 734(b) adjustments for all partners and/or partnership property made in the tax year $ The partnership must 16a 17 also attach a statement showing the computation and allocation of the basis adjustment. See instructions Check this box if, during the current or prior tax year, the partnership distributed any property received in a like- kind exchange or contributed such property to another entity (other than disregarded entities wholly owned by the partnership throughout the tax year) At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities (FDES) and Foreign Branches (FBS), enter the number of Forms 8858 attached. See instructions Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. Did you make any payments in 2023 that would require you to file Form(s) 1099? See instructions b If "Yes," did you or will you file required Form(s) 1099? . Enter the number of Forms 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, attached to this return. 18 Enter the number of partners that are foreign governments under section 892 19 20 During the partnership's tax year, did the partnership 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)? . Was the partnership a specified domestic entity required to file Form 8938 for the tax year? See the Instructions for Form 8938 21 Is the partnership a section 721(c) partnership, as defined in Regulations section 1.721(c)-1(b)(14)? 22 During the tax year, did the partnership pay or accrue any interest or royalty for which one or more partners are not allowed a deduction under section 267A? See instructions If "Yes," enter the total amount of the disallowed deductions 23 24 25 26 27 28 29 $ Did the partnership 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 partnership satisfy one or more of the following? See instructions a The partnership owns a pass-through entity with current, or prior year carryover, excess business interest expense. b The partnership's aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $29 million and the partnership has business interest expense. C The partnership is a tax shelter (see instructions) and the partnership has business interest expense. If "Yes" to any, complete and attach Form 8990. Is the partnership attaching Form 8996 to certify as a Qualified Opportunity Fund? If "Yes," enter the amount from Form 8996, line 15 Enter the number of foreign partners subject to section 864(c)(8) as a result of transferring all or a portion of an interest in the partnership or of receiving a distribution from the partnership Complete Schedule K-3 (Form 1065), Part XIII, for each foreign partner subject to section 864(c)(8) on a transfer or distribution. At any time during the tax year, were there any transfers between the partnership and its partners subject to the disclosure requirements of Regulations section 1.707-8? Since December 22, 2017, did a foreign corporation directly or indirectly acquire substantially all of the properties constituting a trade or business of your partnership, and was the ownership percentage (by vote or value) for purposes of section 7874 greater than 50% (for example, the partners held more than 50% of the stock of the foreign corporation)? If “Yes,” list the ownership percentage by vote and by value. See instructions. Percentage: By vote: By value: Is the partnership required to file Form 7208 relating to the excise tax on repurchase of corporate stock (see instructions): a Under the applicable foreign corporation rules? Page 3 Yes No Form 1065 (2023) Form 1065 (2023) Schedule B Other Information (continued) 30 31 b Under the covered surrogate foreign corporation rules? If "Yes" to either (a) or (b), complete Form 7208, Excise Tax on Repurchase of Corporate Stock. See the Instructions for Form 7208. At any time during this tax year, did the partnership (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or financial interest in a digital asset)? See instructions Is the partnership electing out of the centralized partnership audit regime under section 6221(b)? See instructions If "Yes," the partnership must complete Schedule B-2 (Form 1065). Enter the total from Schedule B-2, Part III, line 3 If "No," complete Designation of Partnership Representative below. Designation of Partnership Representative (see instructions) Enter below the information for the partnership representative (PR) for the tax year covered by this return. Name of PR U.S. address of PR If the PR is an entity, name of the designated individual for the PR U.S. address of designated individual U.S. phone number of PR Page 4 Yes No U.S. phone number of designated individual Form 1065 (2023) Alternative Self- Inter- Minimum Tax (AMT) Items Credits national Form 1065 (2023) Schedule K Income (Loss) Employ- Deductions ment 1 2 Partners' Distributive Share Items Ordinary business income (loss) (page 1, line 23) Net rental real estate income (loss) (attach Form 8825) 3a Other gross rental income (loss) 4 56 7 b Expenses from other rental activities (attach statement) с Other net rental income (loss). Subtract line 3b from line 3a Guaranteed payments: a Services c Total. Add lines 4a and 4b Interest income 4a Dividends and dividend equivalents: a Ordinary dividends b Qualified dividends Royalties 6b 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)). 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) 10 11 12 b Collectibles (28%) gain (loss) c Unrecaptured section 1250 gain (attach statement) Net section 1231 gain (loss) (attach Form 4797). Other income (loss) (see instructions) Type: Section 179 deduction (attach Form 4562) 13a Cash contributions b C Noncash contributions Investment interest expense d Section 59(e)(2) expenditures: e Other deductions (see instructions) (1) Type: Type: 14a Net earnings (loss) from self-employment b Gross farming or fishing income C Gross nonfarm income Page 5 Total amount 1 2 За 3b 3c b Capital 4b 4c 5 6a c Dividend equivalents 6c 7 8 9a 9b 9c 10 11 12 13a 13b 13c (2) Amount: 13d(2) 13e 14a 14b 14c 15a Low-income housing credit (section 42(j)(5)) 15a b Low-income housing credit (other) 15b C Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) 15c d Other rental real estate credits (see instructions) Type: 15d e Other rental credits (see instructions) Type:. 15e f Other credits (see instructions) Type: 15f 16 Attach Schedule K-2 (Form 1065), Partners' Distributive Share Items-International, and check this box to indicate that you are reporting items of international tax relevance 17a Post-1986 depreciation adjustment b Adjusted gain or loss c Depletion (other than oil and gas) d Oil, gas, and geothermal properties-gross income e Oil, gas, and geothermal properties-deductions f Other AMT items (attach statement) . Other Information с 19a b Distributions of other property 20a b C 21 18a Tax-exempt interest income b Other tax-exempt income Nondeductible expenses . Distributions of cash and marketable securities Investment income Investment expenses Other items and amounts (attach statement) Total foreign taxes paid or accrued 17a 17b 17c 17d 17e 17f 18a 18b 18c 19a 19b 20a 20b 21 Form 1065 (2023)/nSee the excel file tab " Tax return problem" for the question and requirement. Use tab "Table C9-1" and "Table C9-2" for the information to fill out all the tax form. There are 6 tax form which need to fill. Your work should show on the exel file how you be able to get the number. For example, if the line 1 of form 1065 you are take from "tax return problem tab", you can link it with that tab. If that number for line 1, form 1065 come from your calc, please show your calc in the excel file. There each tab for each form for you to show me your work so I can confirm where you get the number. Us taxation 2023See Answer
  • Q17:Cash: Question 3 (Graded Assignment) a) Using both years of data provided, compare the date checks were received (as noted in the Mailroom Cash Control listing) to the date that the cash was entered into the accounting system (Journal Entry Date in the Corporate Cash Account) b) In the template below, list any entries where the date the check was received and the date it was recorded seem out of the ordinary. c) If there is a delay in depositing checks, does it appear that it is centered on any particular customer? d) What questions you might ask management? Are there any additional audit procedures you would recommend? Hints: To answer this problem you will need to combine data from the Mailroom Cash Control list (when checks arrived and were opened) and the Corporate Cash Account (when they were deposited) and compare the dates. You should notice a pattern that reveals what is a "normal" time spread for this company between when checks arrive and are deposited. What you are looking for is when there is a deviation from that pattern. Other things to consider, what happens when that normal time period spans a weekend? (you might need to use the "weekday" function to show what day of the week checks arrive and are deposited. Also, there is an intercompany transfer of mnoney each month of $30,000 from the Storefront cash account to the Corporate Cash account. These funds are an electronic transfer, thus will not go through the mailroom. Use the template below to present your answer. Mailroom Control List Date check Date deposited in check Corporate Cash arrived Account Check Amount Invoice # Description Customer # NotesSee Answer
  • Q18:Cash: Question 2 (In-class Work) Compare cash receipts to sales invoices. a) Using the data provided (2021 & 2022), check to ensure the accuracy of the Mailroom Control list. To do this, compare each cash receipt as recorded to the amount invoiced (Sales and Delivery Invoices). Identify any cases in which the Mailroom Control amount does not match the total billed on the invoice. b) If you find discrepancies, what might you report to the company. Do you believe the discrepancies require further investigation? Hints: In this problem, you will need to link together information from Mailroom Control List and Product & Delivery Invoice data sets. To do this, consider using the "VLOOKUP" function. Once you have the information from the invoices and cash receipts on one worksheet, think about how you can easily compare one to the other without having to page through the entire worksheet. For example, is there a formula you can use that will give you one answer if there is a difference and another if they are the same? Combine Mailroom Control List & Product & Delivery Invoices Date Check Amount Invoiced Invoice # amount Customer Name Customer # DifferenceSee Answer
  • Q19:Cash: Question 1 (In-class Work) Payments to Vendors a) Using the data provided, summarize the 2022 corporate cash disbursements by payee and compare with a similar summary from 2021. Enter into the template below only those payees you believe had an "interesting" change from 2021 to 2022. Consider the materiality threshold identified in Question 3 of risk assessment, audit workpaper B.2.1 to identify any transactions that should be explored further. b) Think beyond the materiality threshold. Even if an item does not meet the dollar materiality threshold are other things questionable? For example, is there a large percentage change even if the dollar change is below materiality? Are there payees that you expect to have an increase in 2022, but did not? c) Once you identify accounts that need investigation, draft questions that you would ask of management and identify other audit procedures needed. Write these in the "Notes" column. An example might be to check whether the difference is due to price changes. Consider presentation of your findings. The template below might be used. Hints: While this can be completed using sorts, sums and few calculated fields, explore using a pivot table. In a pivot table you can sum by account and year and create calculated variables to analyze the difference. (see videos) Analysis of differences: Payee Description Vendor # 2021 2022 Dollar Difference Percent Notes: DifferenceSee Answer
  • Q20:(Score for Question 3: of 10 points) 3. Company A offers a semimonthly salary of $3543, and Company B offers a biweekly salary of $3501. Which company pays a greater annual salary? Show your work. (4 points for showing work for Company A, 4 points for showing work for Company B, 2 points for correct response)See Answer
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