Corporate Tax Return Instructions Fall 2018 Myer Wiener Corporation was organized on January 31, 1998. Oscar manufactures television d at 2622 Winnie Street, Orlando, FL 32818. Oscar's financial components. Oscar's offices are locate statements are on the attached pdf files. Oscar's EIN is:57-9899890 and their business activity code is: 3670. During the year, Oscar made estimated federal tax payments totaling $5,800. If there is any overpayment of taxes, the accounting department has requested that it be applied towards next year's estimated tax. If OMWC underpaid on taxes, calculate the underpayment penalty, if any. Oscar paid a total of $36,700 of dividends to its shareholders this year. Oscar's preferred stock is held by 17 different shareholders, none of whom own more than 10% of the stock in the company. Oscar's two officers, Fritz and Winnie Myer, each own 50% of the common stock. Fritz's SSN is: 199-99-1234 and Winnie's SSN is 675-90-9999. Fritz is President of the company and his compensation is $75,000. Winnie is Vice President and her compensation is $66,350. During the year, Oscar sold two investments. St. Lucie county bonds purchased on July 6, 2003 were sold on November 16, 2018 for $3,215. Oscar's adjusted basis in the bonds was $3,740. Oscar sold 100 shares of Pioneer Corp common stock on March 14, 2018 for $26,300. The stock was purchased for $18,200 on May 9, 2000 The bad debt expense reported on the income statement is based on the reserve method of accounting. Actual bad debts written off during the year were $8,950. Tax depreciation $6000 less than book depreciation Instructions 1. Complete Oscar's 1120 for the calendar year ended December 31, 2018. a. Complete all required schedules and forms that accompany the 1120. Prepare a 1 page paper describing the methods that OMWC should use to prepare their estimated tax payments for next year. (12 point font, times new roman, double spaced). 2. "use the 2017 1120 forms and schedules, but use the current tax code to prepare the forms (the 2018 1120 has not been released yet) Oscar Myer Wiener Dog Corp. Comparative Balance Sheets As of December 31st 2017 and 2018 Assets: 2017 S 44,000 $32,000 Cash 2018 Notes Receivable 66,700 33,000 255,890219,780 Accounts Receivable Allowance for Doubtful Accounts Inventories at lower of cost or market Raw Materials Finished Goods $(9,400) 7,800) 46,980 7,616 110,552 Investment in municipal bonds-Orange County, FL 32,000 $ Investment in common stock-Pioneer Corp Land Building Machinery and Equpment Accumulated Depreciation Total Assets $ 140,625 25,000 49,005 s 98,700 $ 98,700 5 182,432 206,379 45,000 $210,000 $ 210,000 (89,988)(128,045) $958,166 990,960 Liabilities and Stockholders' Equity: Bank Loans Accounts Payable Accrued Expenses Bonds Payable Preferred Stock Common Stock Additional paid in capital 2017 $ 78,982 $189,990165,882 $ 11,054 $200,000 200,000 $160,000 160,000 $180,000 200,000 $54,000 S $ 84,140 $ 958,166990,960 2018 76,651 12,894 83,000 92,533 Total Liabilities and Stockholders' Equity Oscar Myer Wiener Dog Corp. Income Statement For the Year Ended December 31st 2018 $1,930,000 (245,662) $1,684,338 Sales less: Sales Returns Net Sales less: COGS Gross Profit 332,967 Operating Expenses: Officers' Salaries Salaries and Wages Expense Repairs $ 141,350 $28,537 $ 2,214 Property Taxes Payroll Taxes Depreciation of Buildings Bad debts expense Advertising Travel Expenses (includes $2000 for meals) Administrative Expenses Net Operating Income 4,200 s 11,398 $ 6,068 $ 7,152 $29,033 s 20,180 s 10,562 (260,694) 72,273 Other Income Dividends from domestic corp (15% ownership) Interest Income ($10S0 from muni bonds) Gain on sale of Pioneer Stock $ 3,600 $3,033 S 8,100 S 14,733 87,006 Other Deductions Loss on sale of Orange County Bonds Interest Expense Contributions to qualified charities Legal Fees Net Income before federal taxes Less: Estimated federal taxes Net Income $ 525 $12,688 12,000 $ 900 S S 900(26,113) 60,893 $ (15,800) 45,093 Cost of Goods Schedule: Inventories at beginning of year Materials purchased Salaries and Wages Other Costs Total goods available for sale Less: inventories at year end Cost of Goods Sold $ 155,736 1,224,000 $ 112,860 77,016 $1,569,612 $ (218,241 $ 1,351,371 Corporate Tax Return Instructions Fall 2018 Myer Wiener Corporation was organized on January 31, 1998. Oscar manufactures television d at 2622 Winnie Street, Orlando, FL 32818. Oscar's financial components. Oscar's offices are locate statements are on the attached pdf files. Oscar's EIN is:57-9899890 and their business activity code is: 3670. During the year, Oscar made estimated federal tax payments totaling $5,800. If there is any overpayment of taxes, the accounting department has requested that it be applied towards next year's estimated tax. If OMWC underpaid on taxes, calculate the underpayment penalty, if any. Oscar paid a total of $36,700 of dividends to its shareholders this year. Oscar's preferred stock is held by 17 different shareholders, none of whom own more than 10% of the stock in the company. Oscar's two officers, Fritz and Winnie Myer, each own 50% of the common stock. Fritz's SSN is: 199-99-1234 and Winnie's SSN is 675-90-9999. Fritz is President of the company and his compensation is $75,000. Winnie is Vice President and her compensation is $66,350. During the year, Oscar sold two investments. St. Lucie county bonds purchased on July 6, 2003 were sold on November 16, 2018 for $3,215. Oscar's adjusted basis in the bonds was $3,740. Oscar sold 100 shares of Pioneer Corp common stock on March 14, 2018 for $26,300. The stock was purchased for $18,200 on May 9, 2000 The bad debt expense reported on the income statement is based on the reserve method of accounting. Actual bad debts written off during the year were $8,950. Tax depreciation $6000 less than book depreciation Instructions 1. Complete Oscar's 1120 for the calendar year ended December 31, 2018. a. Complete all required schedules and forms that accompany the 1120. Prepare a 1 page paper describing the methods that OMWC should use to prepare their estimated tax payments for next year. (12 point font, times new roman, double spaced). 2. "use the 2017 1120 forms and schedules, but use the current tax code to prepare the forms (the 2018 1120 has not been released yet) Oscar Myer Wiener Dog Corp. Comparative Balance Sheets As of December 31st 2017 and 2018 Assets: 2017 S 44,000 $32,000 Cash 2018 Notes Receivable 66,700 33,000 255,890219,780 Accounts Receivable Allowance for Doubtful Accounts Inventories at lower of cost or market Raw Materials Finished Goods $(9,400) 7,800) 46,980 7,616 110,552 Investment in municipal bonds-Orange County, FL 32,000 $ Investment in common stock-Pioneer Corp Land Building Machinery and Equpment Accumulated Depreciation Total Assets $ 140,625 25,000 49,005 s 98,700 $ 98,700 5 182,432 206,379 45,000 $210,000 $ 210,000 (89,988)(128,045) $958,166 990,960 Liabilities and Stockholders' Equity: Bank Loans Accounts Payable Accrued Expenses Bonds Payable Preferred Stock Common Stock Additional paid in capital 2017 $ 78,982 $189,990165,882 $ 11,054 $200,000 200,000 $160,000 160,000 $180,000 200,000 $54,000 S $ 84,140 $ 958,166990,960 2018 76,651 12,894 83,000 92,533 Total Liabilities and Stockholders' Equity Oscar Myer Wiener Dog Corp. Income Statement For the Year Ended December 31st 2018 $1,930,000 (245,662) $1,684,338 Sales less: Sales Returns Net Sales less: COGS Gross Profit 332,967 Operating Expenses: Officers' Salaries Salaries and Wages Expense Repairs $ 141,350 $28,537 $ 2,214 Property Taxes Payroll Taxes Depreciation of Buildings Bad debts expense Advertising Travel Expenses (includes $2000 for meals) Administrative Expenses Net Operating Income 4,200 s 11,398 $ 6,068 $ 7,152 $29,033 s 20,180 s 10,562 (260,694) 72,273 Other Income Dividends from domestic corp (15% ownership) Interest Income ($10S0 from muni bonds) Gain on sale of Pioneer Stock $ 3,600 $3,033 S 8,100 S 14,733 87,006 Other Deductions Loss on sale of Orange County Bonds Interest Expense Contributions to qualified charities Legal Fees Net Income before federal taxes Less: Estimated federal taxes Net Income $ 525 $12,688 12,000 $ 900 S S 900(26,113) 60,893 $ (15,800) 45,093 Cost of Goods Schedule: Inventories at beginning of year Materials purchased Salaries and Wages Other Costs Total goods available for sale Less: inventories at year end Cost of Goods Sold $ 155,736 1,224,000 $ 112,860 77,016 $1,569,612 $ (218,241 $ 1,351,371