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.

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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