ACCT $408$ Prepare Provision for Income Tax and Form $1120-$ Due March ${10}^{th},2024$ at $011$:$55$ PM$.$

On January $1,2020,$ Rose Enterprises, Inc., was formed to manufacture and sell Baseball Card Memorabilia. In the current year $2023,$ the went Public and now is listed on the NASDAQ $($Ticker Symbol REIC$)$ is summarized as follows:

Rose Enterprises, Inc.$\text{'}$s business address is $1010$ Northeast Parkway, Tustin CA $9278$; its telephone number is $(714)505-1212.$

The employer identification number is $11-1111122,$ and the principal business activity code is $423910.$

Joseph Rose and Sam Rose each owned $15\%$ of the common stock; Joe is President and CEO, and Sam is COO of the company. Ryan Bryant is the CFO and does not hold any shares.

All the officers are full$-$time employees of Rose Enterprises, Inc. Joe's Social Security number is $123-45-6788,$ Sam's Social Security number is $123-45-6787$ and Ryan's Social Security Number is $123-95-7894.$

The Company sold XYZ Company stock at $12/31/2023$ that was purchased on $1/02/2023$ with IPO proceeds. They purchased $1,000$ shares @ $130$ per share and sold it @ $$230$ per share. The Company also has worthless stock in their portfolio. Trout Enterprises a private company that was purchased for $$350,000$ on January $1,2023,$ and the Company filed for bankruptcy on September $15,2023.$

Rose Enterprises, Inc. is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. No inventory reserves were recorded at $\frac{12}{31}\frac{?}{2023}.$ Rose Enterprises, Inc. uses the straight$-$line method of depreciation for book purposes and accelerated depreciation $($MACRS$)$ but elected straight line for tax purposes. For $2021,$ first year of operations the Company claimed tax depreciation same as the amount for book purposes.

During $2023,$ the corporation distributed a total of $$1,000,000$ of dividends to all shareholders during $2023.$

Rose Enterprises, Inc.$\text{'}$s GAAP redacted summarized audited public financial statements for $2023$ are shown in a separate file.

For $2023,$ the Company claimed deprecation on its Office Equipment for tax purposes for $2023$ as noted in the facts in the separate file. You are provided enough detailed data to complete a Form $4562.$ No book tax difference in depreciation existed at $12/31/2022.$

Rose Enterprises, Inc. made all payments of $$7,500,000$ on January $15,2023.$ Ignore any estimated tax penalties.