ABC, Inc , 110 Apple Street, Okie, OK 71111, is a corporation (EIN 57 1234567) formed on January 1, 2010 Information concerning the corporation and its two shareholders follows It uses tax cash basis accounting, did not pay dividends in excess of earnings and profits, has no foreign shareholders, is not publicly traded, and has no NOL carrybacks Bob Boomer (SSN 445 12 3456), 112 Orange Street, Okie, OK 71111, is a 60 shareholder Sally Boomer (SSN 445 65 4321), 114 Orange Street, Okie, OK 71111, is a 40 shareholder Bob received a dividend of $60,000, and Sally received a dividend of $40,000 Both of these dividends are in addition to their salaries ABC, Inc s Business Activity Code is 111111, Business Activity is consulting, and Product or Service is wisdom ABC, INC Comparative Balance Sheet As of December 31, 2015, and December 31, 2016 12 31 15 12 31 16 Assets Cash $ 39,955 $ 45,459 Investments 258,456 169,125 Office equipment 225,000 310,759 Accumulated depreciation (equipment) (156,000) (165,379) Building 491,200 491,200 Accumulated depreciation (building) (37,232) (49,826) Total assets $821,379 $801,338 Liabilities and equity Notes payable $353,600 $335,458 Common stock 10,000 10,000 Retained earnings 457,779 455,880 Total liabilities and equity $821,379 $801,338 CHECK CHECK Your check figure for Form 1120, page 1, line 28, and Schedule M 1, line 10, is $113,277 Income Statement For the Year Ending December 31,2016 Revenuc Consulting income Interest income Rental incomc Dividend income Long term capital losscs $866,689 4,231 9,000 8,234 (8,200) $879 954 Total revenue Expenses Salaries and wages (nonoaners) $253,000 Officers' salarics Bob 225,000 150,000 21,973 20,127 24,051 15,500 11,850 Meals and entertainment (100 ) 12,452 18,500 7,000 6,450 3,200 12,000 750 $781 853 $ 98 101 Sally Depreciation Interest expense Taxes and licenses Utilities Travel Auto Insurance (health) Accounting and legal Repairs Charitable contributions Payroll penalties Total expenses Net income Dividend income is from less than 20 owned domestic corporation Instructions Prepare Form 1120, pages 1 5, for ABC, Inc Schedule D and Form 4562 can be omitted (the information given is not sufficient to complete these forms) Please use the 2016 forms Your check figure for Form 1120, page 1, line 28, and Schedule M 1, line 10, is $113,277

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ABC, Inc., 110 Apple Street, Okie, OK 71111, is a corporation (EIN 57-1234567) formed on January 1, 2010. Information concerning the corporation and its two

ABC, Inc., 110 Apple Street, Okie, OK 71111, is a corporation (EIN 57-1234567) formed on January 1, 2010. Information concerning the corporation and its two shareholders follows. It uses tax/cash basis accounting, did not pay dividends in excess of earnings and profits, has no foreign shareholders, is not publicly traded, and has no NOL carrybacks.

Bob Boomer (SSN 445-12-3456), 112 Orange Street, Okie, OK 71111, is a 60% shareholder. Sally Boomer (SSN 445-65-4321), 114 Orange Street, Okie, OK 71111, is a 40% shareholder. Bob received a dividend of $60,000, and Sally received a dividend of $40,000. Both of these dividends are in addition to their salaries.

ABC, Inc.s Business Activity Code is 111111, Business Activity is consulting, and Product or Service is wisdom.

ABC, INC. Comparative Balance Sheet As of December 31, 2015, and December 31, 2016
	12/31/15	12/31/16
Assets
Cash	$ 39,955	$ 45,459
Investments	258,456	169,125
Office equipment	225,000	310,759
Accumulated depreciation (equipment)	(156,000)	(165,379)
Building	491,200	491,200
Accumulated depreciation (building)	(37,232)	(49,826)
Total assets	$821,379	$801,338
Liabilities and equity
Notes payable	$353,600	$335,458
Common stock	10,000	10,000
Retained earnings	457,779	455,880
Total liabilities and equity	$821,379	$801,338

CHECK CHECK: Your check figure for Form 1120, page 1, line 28, and Schedule M-1, line 10, is $113,277.

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Income Statement For the Year Ending December 31,2016 Revenuc Consulting income Interest income Rental incomc Dividend income Long-term capital losscs $866,689 4,231 9,000 8,234 (8,200) $879.954 Total revenue Expenses Salaries and wages (nonoaners) $253,000 Officers' salarics Bob 225,000 150,000 21,973 20,127 24,051 15,500 11,850 Meals and entertainment (100%) 12,452 18,500 7,000 6,450 3,200 12,000 750 $781.853 $ 98.101 Sally Depreciation Interest expense Taxes and licenses Utilities Travel Auto Insurance (health) Accounting and legal Repairs Charitable contributions Payroll penalties Total expenses Net income Dividend income is from less-than-20%-owned domestic corporation. Instructions: Prepare Form 1120, pages 1-5, for ABC, Inc. Schedule D and Form 4562 can be omitted (the information given is not sufficient to complete these forms). Please use the 2016 forms. Your check figure for Form 1120, page 1, line 28, and Schedule M-1, line 10, is $113,277