CORPORATE TAX RETURN PROJECT CASE INFORMATION $$ AC$312$

General Information

Anna West and Zoe Waters each own one$-$half of the common stock of Lucky Penny Corporation $($LPC$).$ LPC was incorporated on January $1,2022.$ It has only one class of stock outstanding and operates as a C corporation for tax purposes. LPC provides accounting services to clients in and around Parkville, Missouri.

Following is additional information related to LPC:

$$ Office Location: $123$ Park Ave, Parkville, MO $64152$

$$ Employer Identification Number:$11-2233444.$

$$ Business activity code: $541213$

$$ The shareholders are both US citizens and also work as officers for the corporation as follows:

o Anna is the chief executive officer and president $($Social Security number $111-22-3333)$

o Zoe is the chief financial officer and treasurer. $($Social Security number $222-33-4444).$

$$ All officers devote $100$ percent of their time to the business and all officers are U$.$S$.$ citizens.

Financial Information

Following is pertinent financial information related to LPC$$s financial activities in $2022$:

$$ LPC uses the accrual method of accounting and has a calendar year$-$end.

$$ LPC made four equal estimated tax payments of $$15,000$ each.

$$ LPC paid a dividend of $$50,000$ to its shareholders on December $15.$ LPC$$s dividend amount was not in excess of its current and accumulated earnings and profits.

$$ Of the $$18,000$ in interest income, $$6,000$ was from a Platte County bond, $$1,000$ was from a US treasury bond, and $$11,000$ was from a bank account.

$$ LPC owned $15,000$ shares of Accounting Unlimited, Inc.$$s $($AU$)$ stock at the beginning of the year, which represented $15\%$ ownership. AU is a US $($domestic$)$ corporation. AU distributed a $$10,000$ dividend to LPC on June $1.$

$$ On September $16,$ LPC sold $2,000$ shares of its AU stock for $$6,000.$ It had originally purchased the shares on February $14$ for $$16,000.$ After the sale, LPC owned $13\%$ of AU$.$

$$ The officers$$ compensation was as follows: Anna, $$200,000$; and Zoe, $$180,000.$

$$ The stock option compensation is related to NQO stock options expensed during the year $($recipients are officers$).$ The options have not been exercised.

$$ LPC wrote off $$3,000$ in accounts receivable as uncollectible during the year.

$$ The investment in bonds includes a $$8,000$ investment in US treasury bonds and $$43,000$ investment in local Platte County bonds.

$$ The fixed asset is office furniture that was placed in service on January $1$ with a useful life for book purposes of $10$ years. LPC wants to take bonus depreciation on the assets for tax purposes.

$$ The intangible asset is a customer list purchased from another accounting firm on January $1.$ The useful life for book purposes is $5$ years.

$$ The $$5,000$ interest expense was from a business loan.

$$ All meals were related to business.Audited Financial Statements Complete only the requested forms$/$schedules: Form $1120,$ Schedule D$,$ Schedule G$,$ and Form $4562,$ and Line $26($Form $1120)$ Supporting Statement. If a line of a form or schedule requests a different form$/$schedule that is not explicitly required as stated, you do NOT need to complete it$.$