FULL INSTRUCTIONS are attached. Please see attachment for FULL INSTRUCTIONS.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 Information needed to complete the assignment: Link to forms needed to prepare 1120 US Corporation Income tax Return: https://www.irs.gov/forms-pubs-search?search=1120 Link to forms needed to prepare 1065 US Return of Partnership: https://www.irs.gov/forms-pubs-search?search=1065 Additional information needed to complete tax returns: Jim’s Auto Body (Inc., or LLC) 1122 Sesame Street New York, NY, 10002 EIN 90-1234567 Dated incorporated January 1st, 2010 Jim Jameson 8701 Electric Avenue New York, NY, 10002SSN: 123-45-6789 Jim 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 Body Revenues: Service Revenue $28,000.00 Total Revenue $28,000.00 Expenses: Salary Expense $4,500.00 Rent Expense $1,200.00 Utility Expense $300.00 Depreciation Expense $500.00 Insurance Expense $100.00 Supply Expense $400.00 $7,000.00 Net Income $21,000.00 Jim's Auto Body Balance Sheet As of April 30, 2015 Assets Cash $101,800.00 Acct Rec'able 20,000 PP In $1,100.00 Equipment 55,000 Accu. Dep. $500.00 Supplies $2,600.00 Total Assets $180,000.00 ______________________________________________ ______________________________________________ Liabilities and Stockholders' Equity Liabilities: Accounts Payable $8,000.00 Salary Payable 3,000 Total Liabilities $11,000.00 Stockholders' Equity: Common Stock 150,000 Retained Earnings $19,000.00 ______________________________________________ ______________________________________________ Total Stockholders' Equity $169,000.00 Total Liabilities and Stockholders' Equity $180,000.00 ______________________________________________ ______________________________________________