12/31/2018 Year-End Balance Sheet

Cash: $4,284,189

Inventory: $3,093,452

Land8 $400,000

Stock in Jadis Corp. $50,000

U.S. Treasury Stock $19,000

State of Georgia Bonds $70,000

City of Atlanta, GA Bonds $10,000

Bolt Corp. Bonds $13,500

Forklift (Cost)*9 $123,000

Less: Accumulated Depreciation on Personal Property ($123,000)

Fixed Assets (Personal Property) Net Book Value $0

Liabilities Mortgage Payable $25,000

Shareholders Equity Common Stock $1,000,000

Retained Earnings - Unappropriated*10 $6,915,141

*9 Originally purchased for $123,000 and placed in service on 03/15/2008. Was fully depreciated for financial accounting and tax purposes prior to 2019. Sold for $36,000 on 4/3/19. This was the only fixed asset for the corporation as of 12/31/18 other than the land. *10 All retained earnings are unappropriated.

12/31/2019 Year-End Balance Sheet

Assets

Cash: $5,109,946

Inventory: $2,930,490

Land: $575,000

Stock in Jadis Corp. $50,000

U.S. Treasury Stock $19,000

State of Georgia Bonds $65,800

Bolt Corp. Bonds $12,300

City of Atlanta, GA Bonds $10,000

Pre-Paid Federal Inc. Tax*11 $400,000

New Copier (Cost)*12 $30,000

Less: Accumulated Depreciation ($1,500)

New Desk for Amy (Cost)*13 $5,000

Less: Accumulated Depreciation ($100)

Fixed Assets (Personal Property) Net Book Value $33,400

Liabilities None $0

Shareholders Equity

Common Stock $ 1,000,000

Retained Earnings Unappropriated ??????

(The client was too busy to calculate this figure and they have asked you to complete this for them as a separate engagement from the preparation of the tax returns)

Footnotes

*9 Originally purchased for $123,000 and placed in service on 03/15/2008. Was fully depreciated for financial accounting and tax purposes prior to 2019. Sold for $36,000 on 4/3/19. This was the only fixed asset for the corporation as of 12/31/18 other than the land. *10 All retained earnings are unappropriated.

*11 2019 Federal estimated taxes were paid in 2019. They were paid in four installments as follows: $100,000 on 4/11/19; $100,000 on 6/14/19; $100,000 on 9/13/19 and $100,000 on 12/13/19. *12 Purchased and placed in service on 5/04/19. Royal Crown elects to take the maximum cost recovery on this asset in 2019 under IRC Sect 179, and if applicable, they do not elect out of firstyear bonus depreciation. *13 Purchased and placed in service on 7/4/19. Royal Crown does not elect to take any cost recovery on this asset in 2019 under IRC Sect 179. However, if applicable, they do not elect out of firstyear bonus depreciation.

Hope you can help