Project Information:
You are working for a local accountant during tax season and the accountant has asked you to help with the tax preparation needs of Palo Alto, Inc. Palo Alto is a newly formed hi-tech company that specializes in manufacturing security chips for credit cards. The controller of Palo Alto, Michael Smith, would like your help with the following:
Week 3: Write a short report, 2-3 pages, evaluating the tax issues related to Palo Alto Inc. Be sure to include the reconcilaton form last week and the tax for Schedule M-1 found at irs.gov. Based on the book income to taxable income reconciliation you completed in week 2, and any feedback provided, use the attached spreadsheet to assist you filling out the IRS form for Palo Alto’s Schedule M-1.
