Gross Sales Cost of Goods Sold Gross Profit Other Income: Dividends Interest Tax-Exempt Interest Capital Loss Total Income Expenses: Salaries and Wages Charitable Contributions Meals Total Expenses Net Income Per Books SageGreen Computer Corporation Income Statement For the Year Ended December 31 $ $ 32,000,000.00 20,360,000.00 11,640,000.00 65,000.00 20,000.00 6,000.00 (22,000.00) 11,709,000.00 800,000.00 40,000.00 54,000.00 894,000.00 10,815,000.00 Notes: 1. Meals are subject to 50% limitation. 2. Tax exempt interest of $6,000 is earned from Arizona state bonds. 3. Capital stock transactions: a. 4,000 shares of Tech Inc. stock purchased February 1 for $100,000, sold April 1 for $113,000 b. 2,000 shares of WiresNThings stock purchased June 1 for $50,000, sold September 1 for $55,000 c. 3,000 shares of stock purchased April 1 for $140,000, sold September 1 for $100,000 Cost of Goods Sold notes: Beginning inventory $0 Purchases during the year $17,000,000 Cost of labor $3,000,000 Other costs (depreciation) $360,000 Ending inventory $0 Ending Cash Balance will equal Ending Retained Earnings Balance. Form 1120 Department of the Treasury Internal Revenue Service A Check if: 1a Consolidated return (attach Form 851) b Life/nonlife consoli- dated return. Personal holding co. (attach Sch. PH). 2 3 Personal service corp. (see instructions). 4 Schedule M-3 attached Income Deductions (See instructions for limitations on deductions.) Tax, Refundable Credits, and Payments 2 9 10 11 12 12 13 4 15 1a Gross receipts or sales b Returns and allowances c Balance. Subtract line 1b from line 1a Cost of goods sold (attach Form 1125-A). 3 Gross profit. Subtract line 2 from line 1c. 4 Dividends and inclusions (Schedule C, line 23) 5 Interest 6 7 8 16 U.S. Corporation Income Tax Return For calendar year 2022 or tax year beginning 2022, ending Go to www.irs.gov/Form1120 for instructions and the latest information. Name 1992N222228 TYPE OR PRINT Bad debts. Number, street, and room or suite no. If a P.O. box, see instructions. Rents. 17 Taxes and licenses City or town, state or province, country, and ZIP or foreign postal code E Check if: (1) Initial return Compensation of officers (see instructions-attach Form 1125-E) Salaries and wages (less employment credits) 14 Repairs and maintenance 28 29a b Gross rents Gross royalties Capital gain net income (attach Schedule D (Form 1120)) Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (see instructions-attach statement) Total income. Add lines 3 through 10 Interest (see instructions) Charitable contributions. (2) 24 Employee benefit programs 25 Reserved for future use. Final return 26 Other deductions (attach statement) 27 Total deductions. Add lines 12 through 26 20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) Depletion. Advertising 23 Pension, profit-sharing, etc., plans (3) Name change 1a 1b 30 Taxable income. Subtract line 29c from line 28. See instructions 31 Total tax (Schedule J, Part I, line 11). 32 Reserved for future use.... 33 34 35 36 37 Total payments and credits (Schedule J, Part III, line 23) Estimated tax penalty. See instructions. Check if Form 2220 is attached Amount owed. If line 33 is smaller than the total of lines 31 and 34, enter amount owed Overpayment. If line 33 is larger than the total of lines 31 and 34, enter amount overpaid Enter amount from line 36 you want: Credited to 2023 estimated tax ,20 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. Net operating loss deduction (see instructions) 29a 29b Special deductions (Schedule C, line 24). Add lines 29a and 29b B Employer identification number C Date incorporated (4) D Total assets (see instructions) Refunded 1c 2 3 4 5 6 7 8 9 10 11 12 13 14 Address change 15 16 17 OMB No. 1545-0123 18 19 20 21 22 23 24 2022 Y 25 26 27 28 29c 30 31 32 33 34 35 36 37 Form 1120 (2022) Schedule C Dividends, Inclusions, and Special Deductions (see instructions) 1 Dividends from less-than-20% -owned domestic corporations (other than debt-financed stock)... 2 Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock)... 3 Dividends on certain debt-financed stock of domestic and foreign corporations Dividends on certain preferred stock of less-than-20%-owned public utilities 5 Dividends on certain preferred stock of 20%-or-more-owned public utilities. Dividends from less-than-20%-owned foreign corporations and certain FSCs Dividends from 20%-or-more-owned foreign corporations and certain FSCs Dividends from wholly owned foreign subsidiaries Subtotal. Add lines 1 through 8. See instructions for limitations Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 4 6 7 8 9 10 11 12 13 14 15 Reserved for future use. 16a Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471) (see instructions).. 17 b Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions). c Other inclusions from CFCs under subpart F not included on line 16a, 16b, or 17 (attach Form(s) 5471) (see instructions). Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992). Gross-up for foreign taxes deemed paid IC-DISC and former DISC dividends not included on line 1, 2, or 3 Other dividends 18 Dividends from affiliated group members. Dividends from certain FSCs Foreign-source portion of dividends received from a specified 10% -owned foreign corporation (excluding hybrid dividends) (see instructions). 19 Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13 (including any hybrid dividends). 20 21 Deduction for dividends paid on certain preferred stock of public utilities (a) Dividends and inclusions 22 Section 250 deduction (attach Form 8993) 23 Total dividends and inclusions. Add column (a), lines 9 through 20. Enter here and on page 1, line 4. 24 Total special deductions. Add column (c), lines 9 through 22. Enter here and on page 1, line 29b (b) % 50 65 See instructions 23.3 26.7 50 65 100 See instructions 100 100 100 100 100 Page 2 (c) Special deductions (a) x (b) Form 1120 (2022) Form 1120 (2022) Schedule J Tax Computation and Payment (see instructions) Part I-Tax Computation 1 Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)). See instructions Income tax. See instructions Base erosion minimum tax amount (attach Form 8991) Add lines 2 and 3. 2 3 4 5a Foreign tax credit (attach Form 1118) b Credit from Form 8834 (see instructions) c General business credit (attach Form 3800) d Credit for prior year minimum tax (attach Form 8827) Bond credits from Form 8912 Total credits. Add lines 5a through 5e 6 7 Subtract line 6 from line 4 8 Personal holding company tax (attach Schedule PH (Form 1120)) 9a Recapture of investment credit (attach Form 4255). b Recapture of low-income housing credit (attach Form 8611) c . Interest due under the look-back method-completed long-term contracts (attach Form 8697) .. d Interest due under the look-back method-income forecast method (attach Form 8866) e Alternative tax on qualifying shipping activities (attach Form 8902) f Interest/tax due under section 453A(c) and/or section 453(1) g Other (see instructions-attach statement) Total. Add lines 9a through 9g. 16 17 18 19 20 10 11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 Part II-Reserved For Future Use 12 Reserved for future use Part III-Payments and Refundable Credits 13 2021 overpayment credited to 2022 14 15 2022 estimated tax payments 2022 refund applied for on Form 4466 Combine lines 13, 14, and 15 Tax deposited with Form 7004 Withholding (see instructions) Total payments. Add lines 16, 17, and 18 Refundable credits from: a Form 2439 b Form 4136. c Reserved for future use d Other (attach statement-see instructions) 21 Total credits. Add lines 20a through 20d. 22 Reserved for future use.. 23 Total payments and credits. Add lines 19 and 21. Enter here and on page 1, line 33 5a 5b 5c 5d 5e SESSE 9a 9b 9c 9d 9e 9f 9g 20a 20b 20c 20d 2 3 4 6 7 8 10 11 12 13 14 15 16 17 18 19 21 22 23 Page 3 Form 1120 (2022) Form 1120 (2022) Schedule K Other Information (see instructions) Cash b 1 Check accounting method: a 2 See the instructions and enter the: a Business activity code no. b Business activity c Product or service 3 4 At the end of the tax year: a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part I of Schedule G (Form 1120) (attach Schedule G).. 5 a b Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) At the end of the tax year, did the corporation: Accrual 8 Other (specify) 9 10 11 Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? If "Yes," enter name and EIN of the parent corporation 12 Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) below. (1) Name of Corporation (ii) Employer Identification Number (if any) (ii) Country of Incorporation (ii) Employer Identification Number (if any) b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If "Yes," complete (1) through (iv) below. (1) Name of Entity (iii) Country of Organization 7 At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of the total voting power of all classes of the corporation's stock entitled to vote or at least 25% of the total value of all classes of the corporation's stock? For rules of attribution, see section 318. If "Yes," enter: (a) Percentage owned and (b) Owner's country During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in excess of the corporation's current and accumulated earnings and profits? See sections 301 and 316. If "Yes," file Form 5452, Corporate Report of Nondividend Distributions. See the instructions for Form 5452. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary. (c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached (iv) Percentage Owned in Voting Stock (iv) Maximum Percentage Owned in Profit, Loss, or Capital Check this box if the corporation issued publicly offered debt instruments with original issue discount. If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. Enter the amount of tax-exempt interest received or accrued during the tax year $ Enter the number of shareholders at the end of the tax year (if 100 or fewer) If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions) Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported on page 1, line 29a.) $ Yes If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or the election will not be valid. Page 4 No Form 1120 (2022) Form 1120 (2022) Schedule K Other Information (continued from page 4) 13 15a b 14 Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement? See instructions If "Yes," complete and attach Schedule UTP. 16 17 18 19 20 21 22 23 24 26 Yes No Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the tax year less than $250,000? If "Yes," the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions and the book value of property distributions (other than cash) made during the tax year $ a b Did the corporation make any payments in 2022 that would require it to file Form(s) 1099? If "Yes," did or will the corporation file required Form(s) 1099?. . . . During this tax year, did the corporation have an 80%-or-more change in ownership, including a change due to redemption of its own stock? During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction?. Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair market value of more than $1 million?. Did the corporation have an election under section 1630) for any real property trade or business or any farming business in effect during the tax year? See instructions Does the corporation satisfy one or more of the following? See instructions. The corporation owns a pass-through entity with current, or prior year carryover, excess business interest expense. The corporation's aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $27 million and the corporation has business interest expense. c The corporation is a tax shelter and the corporation has business interest expense. If "Yes," complete and attach Form 8990. 25 Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund?. If "Yes," enter amount from Form 8996, line 15 During the corporation's tax year, did the corporation make any payments that would require it to file Forms 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474) of the Code?. Is the corporation operating on a cooperative basis?.. During the tax year, did the corporation pay or accrue any interest or royalty for which the deduction is not allowed under section 267A? See instructions.. If "Yes," enter the total amount of the disallowed deductions $ Does the corporation have gross receipts of at least $500 million in any of the 3 preceding tax years? (See sections 59A(e)(2) and (3)).. If "Yes," complete and attach Form 8991. Since December 22, 2017, did a foreign corporation directly or indirectly acquire substantially all of the properties held directly or indirectly by the corporation, and was the ownership percentage (by vote or value) for purposes of section 7874 greater than 50 % (for example, the shareholders held more than 50% of the stock of the foreign corporation)? If "Yes," list the ownership percentage by vote and by value. See instructions Percentage: By Vote By Value Page 5 Form 1120 (2022) Schedule L 1 Cash 2a b Less allowance for bad debts 3 Inventories. 4 U.S. government obligations 7 8 9 10a b 5 Tax-exempt securities (see instructions) 6 Other current assets (attach statement) Loans to shareholders Mortgage and real estate loans. Other investments (attach statement) 11a b 12 13a b 14 15 SERTAN 16 Balance Sheets per Books Assets Trade notes and accounts receivable Accounts payable. 17 Mortgages, notes, bonds payable in less than 1 year 18 Other current liabilities (attach statement). Loans from shareholders. 4 Buildings and other depreciable assets Less accumulated depreciation. Depletable assets. Less accumulated depletion. Land (net of any amortization) Intangible assets (amortizable only) 5 Less accumulated amortization. Other assets (attach statement). Total assets Liabilities and Shareholders' Equity 1 Net income (loss) per books. 2 Federal income tax per books 3 20 Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) 22 Capital stock: a Preferred stock. b Common stock 23 Additional paid-in capital.. 24 Retained earnings-Appropriated (attach statement) 25 Retained earnings- Unappropriated 26 Adjustments to shareholders' equity (attach statement) 27 Less cost of treasury stock. 28 Total liabilities and shareholders' equity Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. 7 Excess of capital losses over capital gains Income subject to tax not recorded on books this year (itemize): Expenses recorded on books this year not deducted on this return (itemize): a Depreciation. b Charitable contributions. $ c Travel and entertainment. Beginning of tax year (b) (a) Add lines 1, 2, and 3 6 (c) 7 8 End of tax year 9 Add lines 7 and 8. Add lines 1 through 5. 10 Income (page 1, line 28)-line 6 less line 9 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Schedule L, Line 25) 1 Balance at beginning of year 5 Distributions: a Cash. 2 Net income (loss) per books. b Stock c Property 3 Other increases (itemize): Other decreases (itemize): Add lines 5 and 6. Balance at end of year (line 4 less line 7) Income recorded on books this year not included on this return (itemize): Tax-exempt interest $ Deductions on this return not charged against book income this year (itemize): a Depreciation. . $ b Charitable contributions $ (d) 1120 00001