Business Financial Statements & Tax Returns: Creating
This program unlocks the key issues in analyzing business tax returns by creating a business tax return from a conventional financial statement. This shows the major formatting differences and ways balance sheet accounts and income statement items are labeled differently in a tax return. It also reveals the functions of the various schedules. By using a pass-through entity, we further see how the tax return carefully segregates items that move to an owner’s personal tax return via the Schedule K-1. A final step is creating a chart that “maps” a financial statement to both pass-through entities and a regular corporation.