Question

I need help completing the tpt form.

ABC Company
123 Sun Way
Mesa, AZ 85210
555-555-5555
EIN 48-121212
License 121212

Food sales for January 2019 is $10,253
Beverage sales for January 2019 is $4,532
Rent collected from LE Street $2,000
Cost of food $4,000
Cost of beverages $665
Sales Tax Collected Food $1,331
Rental tax collected $36
Enter your name for preparer.

Vendor used to supply food and beverages:
Sunny Market
1234 Fort Drive
Mesa, AZ 85210
555-555-5555
Account # 12345

Inventory:
Business property Account number 987654.
None of the items were transferred from another location and taxes were not already paid.

Purchased 9/7/18 Stove $1,300
Sold 12/3/18 Grill $2,500
Purchased 5/7/18 Beverage Machine $1,000
Purchased 6/14/17 listed Booths $5,000
Balance as of 12/31/18 Food $3,000
Balance as of 12/31/18 Beverages $2,250
Balance as of 12/31/18 Office Supplies $1,400
Enter your name as authorized agent.

STATE (AZ) ICOUNTY TRANSACTION DETAIL (See Table 1 on the Tax Rate Table, www.azdor.gov) (A) (B) (C) (D) (E) (F (G) (J) (K) (L) (M) (H) (J)-(L)= (M) DEDUCTIONS ACCTNG AZI (H) X (K)= (L) OUNTY REG CODE - ( G ) ( H NET TAXABLE DESC. OF CODE BUS. ACTIVITY NAME OF BUS GROSS (H) X ()= (J) TOTAL TAX REGION TAX RATE RATE TAX DUE RECEIPTS SCHEDULE A CREDIT 2 7 AZICOUNTY SUBTOTAL (AMOUNT IN COLUMN M, MUST EQUAL PAGE 1, LINE AA) 0.00 ate Table, www.azdor.gov) CITY TRANSACTION DET (See Table 2 on the Tax (K (C E) (G) DEDUCTIONS FROM (H (I) (J) (L) (M) (J)-(L)- (M) CITY TAX DUE F) CITY LOC CITY CODE CODE BUS DESC. OF BUS. ACTIVITY (F) (G) (H) NET TAXABLE TAX (H) X (I) (J) CITY GROSS RECEIPTS CODE NAME OF CITY SCHEDULE A RATE TOTAL TAX CREDIT 10 11 12 13 14 CITY SUBTOTAL (AMOUNT IN COLUMN M, MUST EQUAL PAGE 1, LINE BB) 0.00 LINE BB AUL NOTE: The total of the amounts listed in Schedule A must equal the total of the Deduction Amounts listed in colume code and business code reported. G SCHEDULE A - DEDUCTION DETAIL INFORMATION SCHEDULE A - DEDUCTION DETAIL INFORMATION CITY DEDUCTIONS DETAIL STATE (AZ) ICOUNTY DEDUCTIONS DETAIL (BI (A) (C) (D) (F) A) (B) (D) (E) F) E) (C) REGION BUS DEDUCTION BUS. DEDUCTION CODE DESCRIPTION OF DEDUCTION CODE DESCRIPTION OF LOC. CITY CODE CODE CODE DEDUCTION AMOUNT DEDUCTION CODE CODE CODE CODE DEDUCTION AMOUNT 9 10 11 12 5 6 AZICOUNTY TOTAL DEDUCTIONS 13 CITY TOTAL DEDUCTIONS TOTAL MUST EQUAL TOTAL ON PAGE 2, LINE 14, COLUMN G TOTAL MUST EQUAL TOTAL ON PAGE 2, LINE 7, COLUMN G AA NET AZ/COUNTY TAX (PAGE 2, LINE 7, COLUMN (M)) 0,00 AA A1 STATE EXCESS TAX COLLECT A1 A2 A2 EXCESS TAX ACCOUNTING CREDIT A3 SUBTOTAL (LINE AA+A1-A2 NETIAZ COUNTY TAX) A3 NET CITY TAX (PAGE 2, LINE 14, COLUMN (M). вв 0.00 BE B1 CITY EXCESS TAX COLLECTED B1 B2 B2 SUBTOTAL (LINE BB+ B1 NET CITY TAX). NET TAX DUE ON THIS RETURN (LINE A3 LINE B2 LINE CC CC CC DD TPT ESTIMATED PAYMENTS TO BE USED ON THIS RETURN (JUNE RETURN ONLY, DUE IN JULY). DD EE TAX DUE NET OF TPT ESTIMATED PAYMENTS (LINE CC - LINE DD LINE EE). EE FF S FF TOTAL AMOUNT REMITTED WITH THIS RETURN eder enaltiee e eriues Ldeelese thet Lheve e d thio roture inolud

Answer 1

(1) Every Company has to be filed the income tax return with in the due date as per income tax act 1961.

Generally if an assessee is an Company , then it is an mandatory to file the financial statements even if company is having an profit or loss or not yet started the company.

Once it is incorporated the company it is required to file the return.

Turnover of the company shall be normally as per the nature of business.

In some cases, if company has been started in any specified locations which has already stated in the act then they will get an special benefits like additional depreciation , special investment allowances or some other benefits has been given.

Computation of Financial statement for the period ending January 2019 for ABC Company.

Particulars	Amount	Particulars	Amount
Cost of Food	$ 4,000	Food Sales	$ 10,253
Cost of Beverages	$ 665	Beverage Sales	$ 4,532
Stock		Stock {Assuming closing also same}
Food	$ 3000	Food	$ 3000
Beverage	$ 2250	Beverages	$ 2250
Office Supplies	$ 1400	Office supplies	$ 1400
Gross Profit	$ ​​​10,120
Total	$ 21,435	Total	$ 21,435

Computation of Depreciation for the following assets.

Stove Life 3 years {1300÷ 3 }÷12 = Depreciation = $ 36.12

Beverage Life 5 years { 1000÷ 5} ÷ 12= Depreciation = $ 16.67

Listed booths life 3 years { 5,000 ÷3} ÷ 12 = Depr = $ 138.89

Total Depreciation for the period of January = $ 191.68

Computation of Net Income taxable for the period January 2019 { see Assumptions}

Particulars	Amount	Amount
Gross Profit		$ 10,120
Deductions
Depreciation		$ 191.68
Taxable Income		$ 9,928
Taxable income after rounding		$ 9,930
Tax @ 30% on 9,930		$ 2,979
Cess @ 4 % on 2979		$ 120
Tax payable{ see Assumptions below}		$ 3,100

Actually in problem they had given the Sales tax collected and Rent tax collected that is not an income of the company.It is to be paid to the government otherwise it is to be treated as income.

I assume that it will be paid to the government with in the specified time period

Actually if company may sale any asset then the company should pay the capital gain tax if it is having an profit on sale of asset but the company has sold the asset in the previous financial year so it's not taxable under this year.

I assume that financial year for the period is an January to December.

I assume that stock has no change for Opening and closing due to not given the details for the closing period.

The taxable income has been calculated based on the details are available .

I assumed that there is no Basic Exemption for the company. It is taxable entirely @ 30% and Education cess @ 4%.

Thank You