Question
CAMCO's tax file includes the following relevant facts: Its legal name is the Cleveland American Manufacturing Company Incorporated as a regular C corporation on July
CAMCO's tax file includes the following relevant facts:
Its legal name is the Cleveland American Manufacturing Company
Incorporated as a regular "C" corporation on July 1, 2010
Address: 175 Vine Street, Cleveland, Ohio 44111.
EIN Number: 34-123456
It manufactures fishing gear
Its Business Activity Code is 339900 for "other manufacturing
Key Financial Information
Total assets $15,000,000
Sales 3,000,000
Net Income "per Books" 840,000
Inventory, beginning 200,000
Inventory, ending 200,000
Purchases 1,200,000
Cost of Goods Sold 1,200,000
Inventory is valued at Cost using the FIFO
inventory cost flow method
All non-inventory expenses are reported
using the Cash basis method
CAMCO is owned by a single shareholder, Jan Goetz. Her Social Security number is
333-55-3333. Last year, Jan's salary as President was $300,000, salaries and wages
paid to other CAMCO employees totaled $450,000. In addition, CAMCO paid $50,000
to rent its manufacturing plant, $100,000 to advertise, and $90,000 for repairs and
maintenance.
Page 2 of 3
Additional information included in CAMCO's file for last year:
CAMCO made four estimated tax payments of $25,000 last year.
Overpaid taxes by $14,000
o Carried this $14,000 forward as a credit, which is still available for use this
year
CAMCO contributed a truck it had used in its business for the past 4 years to St.
Raphael Church. The church planned to use the truck to deliver food and clothing
donations to needy families. The truck had a:
o Current adjusted basis of $20,000, and a
o Fair market value of $50,000 .
Depreciation on fixed assets, all from assets placed into service in prior years, was
$120,000
CAMCO owns 10% of Emerald Woods Golf Inc., a domestic corporation, which paid
CAMCO $300,000 in dividends last year
CAMCO also owns 40% of Catawba Vineyards, Inc. (I.D., 34-654321), which is a
domestic U.S. (Ohio) corporation popular as a Midwest destination winery,
restaurant, and resort. Catawba Vineyards is especially known for its sweet, Lake
Erie Catawba wines.
o CAMCO received $300,000 in dividends from Catawba Vineyards last
year.
o CAMCO can answer "no" to all questions on Form 1120, Schedule K,
except question 5a.
CAMCO uses the calendar year for tax filing.
It is not part of any affiliated group of companies.
prepare form 1120 and other forms
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