TAX 650 Module Six Scenario Guidelines and Rubric The company FPA has the following income, expense, and loss items for the current year.
Sales $850,000 Tax-exempt interest $40,000 Long-term capital gain ,000 Short-term capital loss ,000 Passive activity loss $20,000 Cost of goods sold $480,000 Depreciation $40,000 Section 179 expense $50,000 Other operating expenses $200,000 Net operating loss (from previous year) $24,000
Prepare a calculation of taxable income for the following scenarios and indicate the tax form(s) to report the business activity:
Sole proprietorship
Partnership equally owned by Vinnie and Chandra
Corporation owned by Kim
S corporation owned equally by Henry, Iris, and Jasmine Guidelines for Submission: Scenario assignments must follow these formatting guidelines: double spacing, 12-point Times New Roman font, one-inch margins, and citations in APA format. Page length requirement: 1–2 pages. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions.
Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value
Computation: Sole Proprietorship
Meets “Proficient” criteria and the calculations are complete and error-free
Calculations are free from major errors and demonstrate key steps in computing taxable income on sole proprietorships
The calculation of taxable income has major errors
Does not calculate taxable income
20
Computation: Partnership
Meets “Proficient” criteria and the calculations are complete and error-free
Calculations are free from major errors and demonstrate key steps in computing taxable income on partnerships
The calculation of taxable income has major errors
Does not calculate taxable income
20
http://snhu-media.snhu.edu/files/production_documentation/formatting/rubric_feedback_instructions_student.pdf
Computation: C Corporation
Meets “Proficient” criteria and the calculations are complete and error-free
Calculations are free from major errors and demonstrate key steps in computing taxable income on C corporations
The calculation of taxable income has major errors
Does not calculate taxable income
20
Computation: S Corporation
Meets “Proficient” criteria and the calculations are complete and error-free
Calculations are free from major errors and demonstrate key steps in computing taxable income on S corporations
The calculation of taxable income has major errors
Does not calculate taxable income
20
Application of Resources
Meets “Proficient” criteria and uses the best resources and formulae for each business type
Appropriate resources and formulae are used consistently for each business type
Appropriate resources and formulae are used for some computations, but not consistently for each business type
Does not use appropriate resources or formulae
20
Earned Total 100%