Davy Jones provides the following information for Davy Jones’ Nautical Tours, Inc, a C corporation which he operates with his business partner, William Turner.You’re required to prepare a Form 1120 U.S. Corporation Income Tax Return, an 1120 Statement 1 – Other Deductions, and an 1120 Schedule G – Information on Certain Persons Owning StockDavy Jones’ Nautical Tours, Inc, is operated by David K. Jones (SSN 000-00-0000) and William W. Turner (SSN 111-11-1111). They are each 50% common shareholders in the business.Principal Business or Professional Activity Code; 114110Principal business; Charter fishing toursEmployer Identification Number 867530950Business address 1008 North Harbor Drive San Diego, CA 92103 Home address (David K. Jones)8700 Lake Murray Blvd #2San Diego, 92119The cash accounting method and GAAP are utilizedThe business was incorporated on January 1st, 2012Wages consist of $25,000 paid to one employee and $15,000 to anotherOfficer’s Compensation; $42,000 payments to each officer, Jones and Turner.None of this compensation is claimed on Form 1125-A (Cost of Goods Sold).There is no preferred stockDepreciation expense; The Jolly Roger was purchased for $850,000. The depreciation on the income statement is book depreciation and will differ from what is actually used on Line 20 Depreciation of form 1120. The boat is depreciated using the Modified Accelerated Cost Recovery System (MACRS), half year convention, is in its 4th year of service and the 10-year recovery period is used. Utilize Publication 946 How to Depreciate Property to calculate the correct depreciation amount to enter on the 1120 Line 20 (Form 4562 is not required). Locate Table A1 in the Appendix to calculate the tax-deductible depreciation. Interest expense is interest paid on the loan for the boat; the boat loan is considered nonrecourseInsurance payments were made to cover liability for guests and for the boatPayroll taxes; FICA and FUTA payments made on behalf of employees and corporate officersTravel was purely for business purposesParking fines are tickets Jones received for parking illegallyLease expense was paid to Honda Motors for his mother’s car lease, who is not involved in the business in any wayEstimated payments; The Corporation made four quarterly estimated tax payments of $1,000 They’d like any overpayment refunded to them.Davy Jones’ Nautical Tours, Inc. 2016 Income StatementRevenue$400,950.00Wages($40,000.00)Officer's Compensation($84,000.00)FICA($9,486.00)FUTA($169.00)Depreciation($85,000.00)Interest($43,900.00)Advertising($6,350.00)Supplies($23,795.00)Legal fees($6,940.00)Insurance($26,700.00)Boat slip rental($33,010.00)Travel($6,250.00)Office expense($7,940.00)Parking fines($1,350.00)Lease expense($3,650.00)Net Profit$22,410.00Davy Jones' Nautical Tour, Inc 2016 Balance Sheet 1/1/201612/31/2016Cash$15,500.00$15,500.00Boat$850,000.00$850,000.00Accumulated Depreciation($255,000.00)($340,000.00)Total Assets$610,500.00$525,500.00 Loans$525,000.00$417,590.00Equity Investment$50,000.00$50,000.00Retained Earnings$35,500.00$57,910.00Total Equity + Liability$610,500.00$525,500.00Assignment GuidelinesTo prepare the Corporation’s tax return, complete the following steps:Ensure that you have Adobe Reader installed on your computer to open and use the downloadable IRS forms. Go to the IRS Web site and download the fill-in tax forms that you will need to complete. Complete all necessary downloaded fill-in forms on the computer and save. Save the completed forms as PDFs and upload for grading.You may not utilize Tax preparation software to complete this assignment! This constitutes cheating!Save the completed forms as PDFs and upload for grading; double check your PDFs to ensure data was retained when they were uploaded to Submitted Assignments; blank forms will yield 0 points!You will be required to fill out and submit the following forms: 1120 U.S. Corporation Income Tax Return1120 Statement 1 - Other Deductions 1120 Schedule G - Information on Certain Persons Owning Stock Other InformationThere is no additional information to display at this time. LegendExtra Credit View Assignment RubricPrivacy PolicyTerms of UseAbout Our AdsContact Us© 2018 Colorado Technical University. All Rights Reserved. Authorized Users Only.