GENERAL COMPANY INFORMATION

Margaret Brown owns 100% of AZ Products, Inc. common stock. The company was formed on January 1, 2016 and the business activity is general retail. The business activity code is 452300.

The company's business address is 2134 Main Street, Lake City, NV, 22222.

The employer identification number is 11-1111111. Margaret is the president of the company. Margaret's Social Security number is 100-00-0000.The percent of time devoted to the business should be 100% for Margaret.

The company applies the accrual method and is a calendar-year taxpayer. The company uses the straight-line method of depreciation for both book and tax purposes. (You do not have enough detailed data to complete a Form 4562 [depreciation]. Enter the amount of depreciation on line 20 of Form 1120.) The corporation had beginning inventory of $5,000 and ending inventory of $2,800.The cost method is used to value ending inventory.There was no change in determining quantities, cost, or valuations between opening and closing inventory.

During the year, the corporation distributed cash dividends of $15,000.

The company made estimated tax payments of $2,000 each quarter to the IRS.Any income tax refund should be applied to the 2019 tax year.

Form 1099s were issued to independent contractors for the 2018 tax year.

AZ Products, Inc. Income Statement

Sales revenue$850,000

Cost of goods sold252,000

Gross profit $598,000

Operating Expenses

Salariesofficers

Margaret Brown$145,000

Salariesother employees210,000

Taxes

Property7,200

Payroll22,400

Other miscellaneous1,38030,980

Repairs and maintenance6,340

Meals (subject to 50% limit) 9,800

Travel5,200

Advertising 14,650

Rent18,000

Depreciation15,900

Contributions to pension plans31,000

Employee benefit programs21,250

Accounting service13,800

Dues and subscriptions4,100

Insurance17,200

Interest expense2,000

Legal and professional services17,000

Miscellaneous3,470

Telephone8,160

Total expenses573,850

Net operating income before taxes$24,150

Other Income

Interest income2,400

Federal income tax(5,700)

Net income per books$ 20,850

AZ Products, Inc. Balance Sheet

AssetsDecember 31, 2017December 31, 2018

Cash$75,000$85,410

Accounts receivable45,10042,300

Inventory5,0002,800

Other current assets1008,100

Depreciable assets210,900215,700

Accumulated depreciation(47,520)(63,420)

Land42,00042,000

Other assets3,5404,490

Total assets$ 334,120$ 337,380

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Liabilities and EquityDecember 31, 2017December 31, 2018

Accounts payable$27,000$28,400

Other current liabilities15,11016,120

Long-term notes payable120,000115,000

Common stock150,000150,000

Retained earnings22,01027,860

Total liabilities and equity$ 334,120$ 337,380

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