S Corporation (Form 1120S)
MUK Tech started as a student driven research program as a part of the computer science degree at Marian University. After the successful creation of two patents by Marian Knight, a 2001 graduate, MUK Tech spun out as a for-profit corporation, changed its name to MUK Technical Applications, Inc., and started implementing its patented network security applications.
The company’s previous CPA retired and MUK was referred to you by a professor that still teaches at Marian University. They have asked you to prepare their 2016 S Corporation Federal Income Tax Return. Below is the information that they provided to you for the tax preparation.
- 2015 Federal Tax Return for MUK Technical Applications, Inc.
- 2016 Financial Statements prepared by their internal controller
- 2015 tax depreciation schedule as prepared by previous CPA
- 2015 shareholder basis schedule as provided by previous CPA
The controller has left depreciation off of the financial statements and asked you to calculate that based on the prior year depreciation schedule and the current year fixed asset additions:
- $12,315 of office furniture
- Purchased on 7/1/2016
- MUK does not want to elect Sec. 179 depreciation
- 50% bonus depreciation should be applied
Marian has also requested that you calculate and let him know what his current basis is in the corporation.
Prepare the 2016 S Corporation Federal income tax return, print the preparer copy to a PDF and email to firstname.lastname@example.org prior to the December 15th, 4:00 PM deadline.