Facts

William Spicer (SS# 123-45-5789) owns 80 percent of the stock in Bill’s Market, an accrual basis gourmet food market operating as an S Corporation. It is located at 387 Spring Street, Raleigh,

NC 29288. William’s wife, June (SS# 987-65-4321), owns the other 20 percent of the outstanding stock of the corporation but she is not active in the business. The Market’s EIN is

79-7979797 and its business code is 445290. It was incorporated on July 15, 2006 an elected Corp status on that date.

During 2017, the Market had the following results from its operations:

Gross sales ($1,300,000 from credit card sales) $3,700,000

Merchandise purchases 2,480,000

Expenses:

Advertising $40,000

Charitable contributions 2,000

Cleaning/maintenance 12,000

Depreciation (MACRS pre-2017 purchases) 3,000

Section 179 expense (2/1/17 display case) 5,000

Payroll taxes (excluding FICA on William’s salary) 18,000

FICA on William’s salary 10,247

William’s salary 200,000

Health insurance 15,000*

Insurance (excludes health) 18,000

Interest expense 1,000

Licenses/fees 4,000

Meals/entertainment 10,000

Office expenses 14,000

Rent 120,000

Salary/wages 210,000

Travel 8,000

Utilities 32,000

*Includes $3,000 for health insurance for William and his family.

The Market sold a unique piece of equipment for $13,000. It had originally cost $5,000 when purchased on March 5, 2013; it had an adjusted basis of $3,000 when sold on August 15, 2017.

The Market also sold a display case for $1,000 on December 12, 2017, that had cost $12,000 when purchased on June 6, 2012; it had an adjusted basis of $4,000 when sold. The gains or

losses on these asset sales are the same for tax and financial accounting. The business complies with all Form 1099 requirements.

Information specific to the corporate form:

The S Corporation made estimated payments for its own State of North Carolina taxes of $10,000 and withheld $45,000 from William’s salary for income taxes. For financial accounting, the corporation does not expense the new display case but deducts $1,000 of depreciation expense. It has a beginning balance of $200,000 in its retained earnings account and made a $25,000 distribution to its shareholders on December 31, 2017.

The corporation’s beginning and ending accrual-basis balance sheets for 2017 are shown below:

                              Jan. 1, 2017                          Dec. 31, 2017

Assets:

Cash                            $62,000                                $ 224,753

Acc Rec                         37,500                                    332638

Inventory                    340,000                                   340,000

Tax Refund                                                                    5,462

Plant, Prop&Equip      $80,000                                 $68,000

Less: Acc Deprec.        62,000                                  59,000   

                                       18,000                                    9,000

Total Assets                $457,500                              $911,853

Liabilities and Equities:

Accounts Payable         $20,000                                         0

Deferred Tax Liability              0                                     $600

Note Payable                    12,500                                 12,500

Common Stock               225,000                              225,000

Retained Earnings          200,000                             673753

Total Liab.&Equities     $457,500                            $911,853

Note that any unaccounted for differences between Financial Statement Income and Taxable Income should be considered timing differences from depreciation methods for Schedule M.

I want to fill out U.S. Income Tax Return for an S Corporation Form 1120s in this problem

 

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Facts. A client has engaged you to advise her on how she is doing with her preparation for retirement. She is a well-paid professional with a current salary of $150,000. She has 15 years until her full retirement age and wants to be able to retire at that time. She expects that her salary will increase about 2% each year until retirement. Client has a taxable brokerage account that now generates about $3,500 in dividends each year. This dividend income can be expected to increase by 5% each year. Client is vested in a small pension from a previous employer that will pay about $15,000 per year during retirement. There is no cost of living adjustment (COLA) for this pension, so the $15,000 figure will not change during the retirement years. Regarding Social Security, Client’s earnings have always been at or above the maximum amount subject to Social Security withholding. In terms of retirement savings, 20% of Client’s annual salary goes into her retirement savings accounts (10% her money with an employer contribution of 10%). If she needs to increase her retirement savings, she has access to a tax-sheltered account into which up to an additional 10% of her salary can go.Use the following information as you develop your retirement plan for Client— o Rate of inflation for all years, 3.5% (use this as the COLA for adjusting Social Security benefits) o Expected rate of return on retirement savings o Until 5 years from retirement (i.e., next 10 years in the base case), 7.5% o Last 5 working years and all retirement years), 5% o Current retirement savings balance, $600,000 o Until retirement, Client puts her dividend income into savings (a rainy day fund). After retirement, the dividend income will go towards meeting her retirement income goal, but, barring an emergency, the principal will not be touched. Accordingly, only the dividend income from this “rainy day fund” should be considered in your analysis—although, you certainly can inform the client as to the value of the stocks in this fund at various points in time (assume stock value also increases 5% a year, which drives the increase in dividends) Answer each of the following questions. • At full retirement age, how much Social Security will Client qualify for (in future $’s)? Use the Quick Calculator benefits calculator at www.SSA.gov to make this determination. What is Client’s Social Security benefit if retirement is delayed until age 70? • Using the SSA.gov website, determine Client’s life expectancy, assuming she is 52 years of age right now and will retire in 15 years at the age of 67. Client’s DOB is February 1, 1961. • Recommend a target income that Client will need her retirement savings to provide—for now, just think about the first year of retirement. • Remember that Client has several sources of retirement income, other than her retirement savings—Social Security, dividend income, and $15,000 annual pension. The retirement income that her retirement savings must fund is her target income less these other sources of retirement income. • Client wants her retirement income to equal 90% of her pre-tax earnings in her last working year. She assumes that her current salary will grow at the inflation rate of 3.5% per year. Think carefully about this! She is saving a 10% of her salary for retirement and FICA is 7.65%. After retirement, she will no longer be saving for retirement and retirement income is not subject to FICA. So, when Client says “90% of her earnings,” she means earnings that she can spend (i.e., net of retirement savings and FICA). Social Security benefit at FRA of 67? Social Security benefit at age 70? Life expectancy given DOB 2/1/1961? What is Client’s target (total) retirement income in the first year of retirement (at age 67)?How much of the above retirement income must come from Client’s retirement savings?

 

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factory has n jobs 1, 2, . . . , n to be processed, each requiring one day of processing time. There are two machines available. One can handle one job at a time and process it in one day, whereas the

other can process two jobs simultaneously and complete them both in one day. The jobs are subject to precedence constraints represented by a binary relation ≺, where i ≺ j signifies that job i must be

completed before job j is started. The objective is to complete all the jobs while minimizing d1 + d2, where di is the number of days during which machine i is in use. Formulate this problem as one of finding a maximum matching in a suitably defined    graph.

 

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Factors such as human emotion and motivation, the provision of opportunities and allocation of resources, shifts in how families structure themselves, and how religious organizations influence people’s lives all impact human behavior and decision making, making those behaviors difficult to study and predict.

Give three more sources of variation (differences between people or influences from the social world) that you think could influence people’s behavior and decisions. (10 character minimum for each)

 

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15a3 – 18a2b- 10ab2 + 12b3

0 Factor out common terms in the first two terms, then in the last two terms saflrsa — Eb} — 25515;: — Eb} Q Faster out the common term Era. — Ebb {5a — fibHfiufl — 252}

 

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