ORPORATION INCOME TAXATION
SPRING SEMESTER 2020
INCOME TAX PROJECT
This Income Tax Project comes with three (3) options. You may complete either of the three (3) options you choose.
OPTION 1
Option 1 is a C (Regular
...
ORPORATION INCOME TAXATION
SPRING SEMESTER 2020
INCOME TAX PROJECT
This Income Tax Project comes with three (3) options. You may complete either of the three (3) options you choose.
OPTION 1
Option 1 is a C (Regular) Corporation Tax Return.
OPTION 2
Option 2 is a Partnership Tax (Information) Return.
OPTION 3
Option 3 is an S Corporation Tax Return.
The Income Tax Return may be prepared manually or using the PROSERIES (TURBOTAX) software (or some other
Federal Income Tax (or Information) software that you may have access to) that is located on the Network System in the
Computer Center on the Eight floor (South) at the University Of Houston-Downtown Campus (and the second floor
classrooms in the Shea Street College Of Business Building) (or on the personal computers at UHD-Northwest at Lone
Star College-University Park). If you choose to prepare the Income Tax (or Information) Return using the ProSeries
(TurboTax) software in the Computer Center (or at UHD-Northwest at Lone Star College-University Park), the following
information applies. The ProSeries (TurboTax) software may be accessed from any personal computer in the Computer
Center that is connected to the Network System at the University Of Houston-Downtown Campus (or on the personal
computers on the personal computers at UHD-Northwest at Lone Star College-University Park). Please bring a device
to the Computer Center in order to save your data. (Please be sure that the device is capable of saving your data). To assist
you in using the ProSeries (TurboTax) software, an operator's manual is available in the Computer Center (or at UHDNorthwest at Lone Star College-University Park). Below is a listing of basic instructions in operating the software.
INSTRUCTIONS
Click on START and enter "PROGRAMS" and locate "ProSeries 2019". Click on "2019 ProSeries". The software will
appear on the screen.
CREATING CLIENT/INPUTTING DATA
Click on "New" to create a new client. You will select the type of Income Tax Return. Choose the Income Tax Return for
which of the three (3) options that you choose to prepare an Income Tax Return. After selecting a type of Income Tax
Return, the first document that you will enter (automatically appears on the screen) will be the "Information Worksheet"
(preceded by the name of type of Return chosen, ie. Partnership, etc.). Complete all necessary information on the
"Information Worksheet". To enter specific tax related information, you must enter the form, schedule or document that
relate to the tax related information you wish to enter. Much of the information will be entered on the forms labeled page
1-2. To go to a specific Form or document, you may either click on "Forms" (and then click on “Select Form”), hit the
"F6" key or hit "Control F" then highlight the desired Form, Schedule or document (or press the lighted letter(s) and/ornumber(s) of the desired Form, Schedule or document) and press return (enter).
WORKSHEETS
In many cases, information may (or must) be entered into a worksheet which is automatically transferred to where needed
in the respective Income Tax Returns. This is especially true for Form 1065 (Partnership Return) for entering information
on partners, etc. Accordingly, pay attention to the many worksheets that are available for the Return you are preparing to
see if certain information may (or must) be entered through a worksheet instead of directly in the Forms and/or Schedules
of the Income Tax Return itself.
DEPRECIATION
To enter depreciation information, either click on "Forms" (and then click on “Select Form”), hit the "F6" key or hit
"Control F" and enter the "Depr Entry Wks". Enter a description of the asset to be depreciated and press return (enter).
Highlight the Form or Schedule the asset relates to (for Partnerships and S Corporations) and press return (enter).
Complete the necessary information at the top of the "Asset Entry Worksheet". The computed depreciation will
automatically be transferred to the appropriate Form or Schedule that the asset relates. (If the Form or Schedule that the
asset relates has not been previously created (for Partnerships and S Corporations), you will be asked to create the Form or
Schedule at this time).
PRINTING
To access the print commands, press "Control P" and click on “Tax Returns” then press return (enter) to print the entire Tax
Return. If you desire to print one (1) Form or Schedule at a time, click on the printer on the tool bar with the red arrow,
then click on "Choose" and select the desired Form or Schedule to print.
DEFAULT SETTINGS
DO NOT ALTER ANY OF THE DEFAULT SETTINGS IN THE SOFTWARE.
CORPORATION INCOME TAXATION
SPRING SEMESTER 2020
INCOME TAX PROJECTOPTION 1
FACTS
Valerie Lawson and Clara Norman are the sole equal shareholders in the corporation of Lawson And Norman Enterprises, Inc. The corporation,
which is a retail office supplies and stationery store, began its operations on January 2, 1985 (also date of incorporation). For Federal Income Tax
purposes, the corporation is a calendar year taxpayer and uses the Accrual Method Of Accounting. Its Employer Identification Number is 76-
1234567, address is 4369 Robbie Lane Houston, Texas 77026-3915, telephone number is (281) 479-8132, fax number is (281) 567-9024 and EMail address is "lawsonandnormanenterprises.com". The business activity code for the corporation is 453210. Valerie Lawson is the president of
the corporation and its contact person for Federal Income Tax purposes and Clara Norman is the secretary and treasurer of the corporation. Both
are full-time employees of the corporation devoting one hundred percent (100%) of their time to the business and each has an annual salary of
$75,000. Valerie Lawson's social security number is 234-56-7890 and her address is 8124 Annette Court Houston, Texas 77031-9475. Clara
Norman has social security number of 890-12-3456 and her address is 2716 Nanette Drive Houston, Texas 77061-3459.
FINANCIAL INFORMATION
During the year of 2019, Lawson And Norman Enterprises, Inc. reported the following Income and Expenses (including necessary accruals) for
Financial Accounting purposes:
Gross Receipts $1,482,00
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