Professional Documents
Culture Documents
Background
The Bike Shop, Inc. jointly owned and operated by Sam Smith and Jane Jones was incorporated
in May 1, 1995. Sam Smith is the President and owns 70% while Jane Jones is secretary
treasurer owns 30%. Both of them are also full time employees.
Scope of Work
Obtain, review and evaluate all information about income and finances of The Bike Shop
Review prior years tax filling and tax liability status of The Bike Shop
Research and properly prepare 2012 tax form 1120 and ensure that tax liability is at its
legal minimum
Prepare computational and other schedules to tax form 1120.
Ensure filing of The Bike Shop 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
2013 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.
Assignment goal statement: To increase understanding of U.S. Corporation Income tax Return.
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
Team members