Complete the following for this assignment:Prepare a 1120 U.S. Corporation Income Tax Return as Jim’s Auto Body, Inc.Complete the appropriate schedules in the 1120 and Statement 1 – Other Deductions.Prepare a 1065 U.S. Return of Partnership as Jim’s Auto Body, LLC.Complete the appropriate schedules in the 1065, Statement 1 – Other Deductions and the 1065 Schedule K1 for Jim.Note: This project is to be completed without the use of tax preparation software. Use of tax preparation software is considered cheating and is grounds for a failing grade.Additional InformationJim’s Auto Body (Inc., or LLC)1122 Sesame StreetNew York, NY, 10002EIN 90-1234567Dated incorporated January 1st, 2010Jim Jameson8701 Electric AvenueNew York, NY, 10002SSN: 123-45-6789Jim Jameson took on Fred as a partner for the LLC. Fred owns 50% of all profits, losses, and capital. You do not have to complete Part 2 K, L, or M on the 1065 Schedule K1 (there is not enough information provided).$4,500 salary expense is officer’s compensation for the corporation and guaranteed payment to partners for the LLC.$55,000 equipment is 7-year property in its 5th year of service and was placed into service in the middle of the year, thus using the half-year convention. Use the correct table from the IRS—Publication 946: How to Depreciate Property—to determine the tax deductible depreciation. Form 4562 is not required.Jim made four quarterly estimated tax payments of $800 each over the course of the year.In accordance with IRS instructions: “Corporations with total receipts and total assets at the end of the tax year less than $250,000 are not required to complete Schedules L, M-1, and M-2” (Internal Revenue Service, n.d.). This also applies to the LLC.For the 1065 Schedule K1, you will not have enough information to fill out Part 2 K, L, and M.Jim’s Auto BodyRevenues:Service Revenue28,000Total Revenue28,000Expenses:Salary Expense4,500Rent Expense1,200Utility Expense300Depreciation Expense500Insurance Expense100Supply Expense4007,000Net Income21,000Jim’s Auto BodyBalance SheetAs of April 30, 2015AssetsCash101,800Acct Rec’able 20,000PP In1,100Equipment 55,000Accu. Dep.500Supplies2,600Total Assets180,000____________________________________________________________________________________________Liabilities and Stockholders’ EquityLiabilities:Accounts Payable8,000Salary Payable 3,000Total Liabilities11000.00Stockholders’ Equity:Common Stock 150,000Retained Earnings19000____________________________________________________________________________________________Total Stockholders’ Equity169000.00Total Liabilities and Stockholders’ Equity180,000____________________________________________________________________________________________ReferenceInternal Revenue Service. (2015). Instructions for form 1120. Retrieved from

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