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Corporate Taxation 539

Group Project: S Corporate Tax Return

Client: Slatterys Inc.


5432 Partridge Pl.
Tulsa, OK 74105

Step 1: Scope, budget in hours, work plan, & team

Background:

Slatterys Inc. is an S corporation. It was incorporated on February 1, 2012 and started business
in February 25, 2012. The shareholders are Lisa Cutter (owns 50%), Jeff McMullen (owns 20%)
and Tina Woodbrook (owns 30%). Lisa and Jeff believed that the public would love the recipes
used by Lisas mom, Tina Woodbrook. They also though that they had the necessary experience
to succeed their business, Lisa had experience operating as a small bakery while Jeff currently
owned a fast food franchise business.

Scope of Work:

Obtain, review and evaluate all information about income and finances of Slatterys Inc.
Create a tax trial balance with book to tax adjustments
Prepare computational and other schedules to tax form 1120S
Collect any useful information to complete final tax return
Ensure filing of Slatterys 2012 Tax Returns within the stipulated time\

Budget in hours:

The budget of the professional service that will be rendered in connection of the preparation of
2012 S corporate tax return is detailed in the table below. This budget is a pro forma and the total
billable hours will be adjusted to match the exact billable hours that were used in connection
with the preparation of the client's tax return.

PRO FORMA SERVICE BUDGET


Planned expense
Time (in hours) Description
5.00 Step 1: Scope, workplan
6.00 Step 2: Trial balance with book to tax reconciliation
5.00 Step 3: Schedules to tax form (schedule A, B, K, L, etc.)
2.00 Step 4: Draft of corporate tax return
3.00 Step 5: final corporate tax return
Work Plan:

Assignment goal statement: To increase understanding of S Corporation Income tax Return.

By the end of this assignment, we will be able to prepare Form 1120S

Activity Inputs Timefra Anticipated Progress Reporting


me Outputs
Identify the Scope, Research team 10/29 Complete the Submit the group proposal to
budget in hours, first step the professor
workplan and team
of this assignment
Prepare the tax Balance sheet 11/08 Complete Each team member will
trial balance with Research team schedule L of complete a tax trial balance
book to tax load and form 1120S and email it the group. Each
adjustment reconcile data TB will be reviewed and the
gather general best option will be used going
ledger data into forward.
files
Prepare the Balance sheet, income 11/22 Complete Following the completion of
reconciliation to statement and research schedule M-1 the trial balance; the rest of
book to taxable team and schedule the steps will be distributed to
income load and reconcile data M-2 the group members and
gather general ledger completed by this date for
data into files review.
Prepare draft of S Research team 11/22 Complete form The rest of the steps will be
corporate tax 1120 S with distributed to the group
return attachments members and completed by this
date for review.
Meeting with the Research team 11/22 Complete form The rest of the steps will be
client 1120 with distributed to the group
attachments members and completed by
this date for review.
Prepare final Research team 10/26 Complete form The rest of the steps will be
corporate tax 1120 with distributed to the group
return, with attachments members and completed by
supporting this date for review.
schedules and
workpapers
.

As a team we will complete an 1120S S-Corp Tax Return for problem 11-55 in the book.
We will discuss how to divide up the responsibilities between the group members. Different
responsibilities will include researching the tax treatment of specific book to tax adjustments,
preparing the tax trial balance, preparing supporting schedules and preparing the final tax return.
Group members will be expected to put forth an equal effort toward the completion of the tax
return and complete their share of responsibilities by the outlined dates.We will try to finish the
assignment one week ahead of time, so we can check up our answers with the professor and see
if we would make any adjustments. Also, we will try to read the book and understand the
material during this week to be able to fill up the form and analyze the data correctly.

Team Members

Daniel Mohr: Mohr.Daniel@yahoo.com


Lacey Ault: lacmason@iupui.edu
Ryan Huehne: ryanrhuehne@yahoo.com
Wassim Zhani: wzhani@iupui.edu