Hi there! I am trying to get the calculation for line 26 here. Here are the files I was provided with. This is from ACC 455 week 4 team assignment.

1120 U.S. Corporation Income Tax Return Form Department of the Treasury Internal Revenue Service A Check if: 1a Consolidated return (attach Form 851) . b Lifeonlife consolidated return . . . 2 Personal holding co. (attach Sch. PH) . . Income Deductions (See instructions for limitations on deductions.) B Employer identification number Phoenix Medical Inc TYPE OR PRINT 24-5678501 C Date incorporated Number, street, and room or suite no. If a P.O. box, see instructions. 1122 Three Ave 3/27/2006 D Total assets (see instructions) City or town, state, or province, country and ZIP or foreign postal code $ Phoenix, AX 85001 . E Check if: (1) (2) Initial return (3) Final return . . . . . . . . . . . . 1a 2 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b . . . . . . . . 5 6 7 Interest . . Gross rents . Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 10 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 instructionsattach statement) . . . . . . . . . . . . . . . . . . 11 12 13 Total income. Add lines 3 through 10 . . . . . . . . . Compensation of officers (see instructionsattach Form 1125-E) . . . . . . . . Salaries and wages (less employment credits) Repairs and maintenance . . . . . . Bad debts . . . . . . . . . . . Rents . . . . . . . . . . . . . . . . . . . . . 14 15 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 19 Taxes and licenses . . Interest . . . . . Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross receipts or sales . . . . . 6515837 (4) Name change Returns and allowances . . . . . Balance. Subtract line 1b from line 1a . Cost of goods sold (attach Form 1125-A) Gross profit. Subtract line 2 from line 1c Dividends (Schedule C, line 19) . . Address change . . . . 5615706 17633 . . . . . . . . . . . . . . . . 1c 2 3 4 5598073 . . . . . . . . . . . . . . . . . . 5 6 7 833 240000 . . . . . . . . . . . . . . . . . . . . . 8 9 10 75000 . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 13 5993906 940000 321580 . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 16 18855 216085 . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 19 242366 63678 100000 20 21 22 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21 22 628702 23 24 25 Pension, profit-sharing, etc., plans . . . . . . . . Employee benefit programs . . . . . . . . . . Domestic production activities deduction (attach Form 8903) . . . . 23 24 25 26 27 28 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . . Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 29a b Net operating loss deduction (see instructions) . Special deductions (Schedule C, line 20) . . . b c Tax, Refundable Credits, and Payments 2014 14 , 20 Name 4 Schedule M-3 attached 1a 12/31 , 2014, ending Information about Form 1120 and its separate instructions is at www.irs.gov/form1120. 3 Personal service corp. (see instructions) . 1/1 For calendar year 2014 or tax year beginning OMB No. 1545-0123 c 30 31 32 33 34 35 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Add lines 29a and 29b . . . . . . . . . . . . . Taxable income. Subtract line 29c from line 28 (see instructions) . . . . . . . . . . . . . . . . . . . . 29a 29b . . . . . . . . . . . . . 1535624 56000 . . . . . . . . Total tax (Schedule J, Part I, line 11) . . . . . . . . . . . . . . . . Total payments and refundable credits (Schedule J, Part II, line 21) . . . . . . . Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed . . . . . . . . Overpayment. If line 32 is larger than the total of lines 31 and 33, enter amount overpaid Enter amount from line 35 you want: Credited to 2015 estimated tax . . . . . Refunded . . . . . . . . . . . . . . 1252 26 27 28 451263 2983780 3010126 29c 30 1591624 1418502 31 32 33 34 35 36 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Date Signature of officer Paid Preparer Use Only Print/Type preparer's name Preparer's signature Sign Here . . . 5598073 80000 May the IRS discuss this return with the preparer shown below (see instructions)? Yes No Title Date Check if self-employed Firm's name Firm's EIN Firm's address Phone no. For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11450Q PTIN Form 1120 (2014) Page 2 Form 1120 (2014) Schedule C Dividends and Special Deductions (see instructions) (a) Dividends received (b) % 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 debt-financed stock of domestic and foreign corporations . . . . . 4 Dividends on certain preferred stock of less-than-20%-owned public utilities . . . 42 5 Dividends on certain preferred stock of 20%-or-more-owned public utilities . . . . 48 6 Dividends from less-than-20%-owned foreign corporations and certain FSCs . . . 70 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs . . . 80 8 Dividends from wholly owned foreign subsidiaries 100 9 Total. Add lines 1 through 8. See instructions for limitation . . . . . . . . . . . . . . . . . . . 70 80000 see instructions Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 . . . . . 100 11 Dividends from affiliated group members . . . . . . . . . . . . . . 100 12 Dividends from certain FSCs . . . . . . . . . . . . . 100 13 Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12 . . . 14 Income from controlled foreign corporations under subpart F (attach Form(s) 5471) 15 Foreign dividend gross-up . . . . . . . 16 IC-DISC and former DISC dividends not included on lines 1, 2, or 3 . . . . . . 17 Other dividends . . . . . . 18 Deduction for dividends paid on certain preferred stock of public utilities . . . . 19 Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 . . . 20 Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56000 80 10 . (c) Special deductions (a) (b) . . . . . . . 56000 Form 1120 (2014) Page 3 Form 1120 (2014) Schedule J Tax Computation and Payment (see instructions) Part I-Tax Computation 1 2 3 Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)) . Income tax. Check if a qualified personal service corporation (see instructions) . . . . . Alternative minimum tax (attach Form 4626) . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5a b Add lines 2 and 3 . . . . . . . . Foreign tax credit (attach Form 1118) . . Credit from Form 8834 (see instructions) . . . . . . 3 4 . . . . . . . . . . . . 6 7 . . 9a . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General business credit (attach Form 3800) . . . Credit for prior year minimum tax (attach Form 8827) Bond credits from Form 8912 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Total credits. Add lines 5a through 5e Subtract line 6 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . 8 9a Personal holding company tax (attach Schedule PH (Form 1120)) . Recapture of investment credit (attach Form 4255) . . . . . . . . . . . . . . . . b Recapture of low-income housing credit (attach Form 8611) . . . . . c Interest due under the look-back methodcompleted long-term contracts (attach Form 8697) . . . . . . . . . . . . . . . . . . . . . . 9c d Interest due under the look-back methodincome forecast method 8866) . . . . . . . . . . . . . . . . . . . Alternative tax on qualifying shipping activities (attach Form 8902) . Other (see instructionsattach statement) . . . . . . . . 9d 9e 9f c d e e f 10 11 . . . . . . . . . . . . . . . . Total. Add lines 9a through 9f . . . . . . . . . . . . Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 . (attach . . . . . . . . . 5a 5b 2 5c 5d 5e . . 9b Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 Part II-Payments and Refundable Credits 12 13 2013 overpayment credited to 2014 2014 estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 14 15 16 2014 refund applied for on Form 4466 . Combine lines 12, 13, and 14 . . . Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 ( 15 16 17 18 Withholding (see instructions) . . . . Total payments. Add lines 15, 16, and 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 206103 241144 19 Refundable credits from: Form 2439 . . . . . . . . . . . . . . . . . . 20 Form 4136 . . . . . . . . . . Form 8827, line 8c . . . . . . . Other (attach statementsee instructions). Total credits. Add lines 19a through 19d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a 19b 19c 19d . . . . . . . . 21 Total payments and credits. Add lines 18 and 20. Enter here and on page 1, line 32 . . . . . . 20 21 241144 a b c d Schedule K . . . . Other Information (see instructions) 1 Check accounting method: a 2 a b See the instructions and enter the: Business activity code no. Business activity Medcal c Product or service Skin care Cash b Accrual c . Yes No 621111 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 4 At the end of the tax year: b ) 35041 Other (specify) 3 a . 35041 . . . . . . . . . . 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) . . . . . . 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) . Form 1120 (2014) Page 4 Form 1120 (2014) Schedule K Other Information continued (see instructions) Yes 5 No At the end of the tax year, did the corporation: a 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. (i) Name of Corporation (ii) Employer Identification Number (if any) (iv) Percentage Owned in Voting Stock (iii) Country of Incorporation 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 (i) through (iv) below. (i) Name of Entity 6 (ii) Employer Identification Number (if any) (iv) Maximum Percentage Owned in Profit, Loss, or Capital (iii) Country of Organization 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. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary. 7 At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power of all classes of the corporation's stock entitled to vote or (b) the total value of all classes of the corporation's stock? . . . . For rules of attribution, see section 318. If \"Yes,\" enter: (i) Percentage owned and (ii) Owner's country 8 (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 Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . . 9 10 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) 11 If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here 12 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. Enter the available NOL carryover from prior tax years (do not reduce it by any deduction on line 29a.) $ 1535624 13 . . . . . 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 $ 14 15a b Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement (see instructions)? If \"Yes,\" complete and attach Schedule UTP. Did the corporation make any payments in 2014 that would require it to file Form(s) 1099? . . . . . . . If \"Yes,\" did or will the corporation file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 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? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 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? . . . . . . . . . . . . . . . . . . 18 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? . . . . . . . . . . . . . . . . . . . . . . . . . . . Form 1120 (2014) Page 5 Form 1120 (2014) Schedule L Balance Sheets per Books Beginning of tax year (a) Assets 1 . . . 2a b 3 4 5 6 7 8 9 10a b 11a b 12 13a b 14 15 Cash Trade notes and accounts receivable . Less allowance for bad debts . . . Inventories . . . . . . . . . U.S. government obligations . . . Tax-exempt securities (see instructions) Other current assets (attach statement) Loans to shareholders . . . . . Mortgage and real estate loans . . . Other investments (attach statement) . Buildings and other depreciable assets Less accumulated depreciation . . . Depletable assets . . . . . . . Less accumulated depletion . . . . Land (net of any amortization) . . . Intangible assets (amortizable only) . Less accumulated amortization . . . Other assets (attach statement) . . . Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 18 19 20 21 22 Accounts payable . . . . . . . . . Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) . . Loans from shareholders . . . . . . . Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) . . . . Capital stock: a Preferred stock . . . . b Common stock . . . . Additional paid-in capital . . . . . . . Retained earningsAppropriated (attach statement) Retained earningsUnappropriated . . . Adjustments to shareholders' equity (attach statement) Less cost of treasury stock . . . . . . Total liabilities and shareholders' equity . . End of tax year (b) (c) (d) 672344.28 ( 826113 ) 1725614.28 260990 ) ( 0 75000 ( 1677093 1240071 ) 437022 ( 1946981 1568773 ) ( ) ( ) ( ) 2670870.20 ( 4606349.48 ) 378208 4073025.20 6512837.48 Liabilities and Shareholders' Equity 23 24 25 26 27 28 Schedule M-1 0 1000 107245 122601 61117.51 36065.51 1333423.72 1207401.72 0 1000 1000 1000 3103563.25 ( 3103563.25 ) ( 4606349.48 ) 6512837.48 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3 (see instructions). 1 Net income (loss) per books . . . . . . 2439206 2 Federal income tax per books . . . . . 829330.04 3 Excess of capital losses over capital gains 4 Income subject to tax not recorded on books this year (itemize): 5 a b c 6 4 Income recorded on books this year not included on this return (itemize): 17621 Tax-exempt interest $ 8 Deductions on this return not charged against book income this year (itemize): 628702 a Depreciation . . $ 60000 b Charitable contributions $ 705427 3973963.04 9 10 Add lines 7 and 8 . . . . . . Income (page 1, line 28)line 6 less line 9 3103563.25 2439206 5 . 5032950 Expenses recorded on books this year not deducted on this return (itemize): Depreciation . . . . $ Charitable contributions . $ Travel and entertainment . $ Add lines 1 through 5 . Schedule M-2 1 2 3 7 . . 628702 60000 16725 . . . . . 688702 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) Balance at beginning of year Net income (loss) per books . Other increases (itemize): Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . 5542769.25 6 7 8 Distributions: a Cash . b Stock . c Property Other decreases (itemize): . . . . . . . . . Add lines 5 and 6 . . . . . . Balance at end of year (line 4 less line 7) 5721652 1262437.04 400000 13597 413597 5129172.25 Form 1120 (2014) Supplemental information for Phoenix Medical, Inc. Calendar year ending 12/31/2014: Page 1 Information: Company Name: B. C. Phoenix Medical, Inc. 1122 Three Ave. Phoenix, AZ 85001 EIN: 24-5678901 Date Incorporated: 3/27/2006 Page 2 Information: 1. Dividends were received from Big Labs. Phoenix Medical holds a 15% ownership of Big Labs. Schedule K Information: Line 2. a. Business Activity Code: 621111 b. Business Activity: Medical c. Product or Services: Skin Care Line 3. Not a subsidiary. Line 4. a. Not owned by a foreign or domestic entity. b. Owned equally by three individuals (33.33%). Line 5. Not an owner of 20% or more of a foreign or domestic corporation or partnership. Line 6-11. No. Line 12. NOL carryforward of $1,535,624 is available to offset 2014 income. Line 13 & 14. No. Line 15. Yes and Yes. Line 16-18. No. Phoenix Medical 7:08 AM 11/04/15 Accrual Basis Balance Sheet As of December 31, 2014 Dec 31, 14 Dec 31, 13 $ Change ASSETS Current Assets Checking/Savings 10001 Checking 609,842.00 277,131.00 332,711.00 10010 Savings 557,392.23 325,541.23 231,851.00 10020 Cash Maximizer 558,380.05 69,672.05 488,708.00 1,725,614.28 672,344.28 ### 260,990.00 826,113.00 -565,123.00 260,990.00 826,113.00 -565,123.00 75,000.00 0.00 75,000.00 75,000.00 0.00 75,000.00 2,061,604.28 1,498,457.28 563,147.00 15000 Furniture and Equipment 40,316.00 40,316.00 0.00 15500 Leasehold Improvements 506,889.00 506,889.00 0.00 1,399,776.00 1,129,888.00 269,888.00 Total Checking/Savings Accounts Receivable 11000 Accounts Receivable Total Accounts Receivable Other Current Assets 18100 Loan to Shareholder Total Other Current Assets Total Current Assets Fixed Assets 16100 Medical Equipment 17000 Accumulated Depreciation Total Fixed Assets ### ### -328,702.00 378,208.00 437,022.00 -58,814.00 3,206,518.00 2,306,518.00 900,000.00 866,507.20 364,352.20 502,155.00 4,073,025.20 6,512,837.48 2,670,870.20 4,606,349.48 ### ### 122,601.00 107,245.00 15,356.00 122,601.00 107,245.00 15,356.00 39,065.51 34,742.51 4,323.00 39,065.51 34,742.51 4,323.00 0.00 26,375.00 -26,375.00 Other Assets 18001 Investment in Big Labs 18050 Investment in R&D Company Total Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 20001 Accounts Payable Total Accounts Payable Credit Cards 20100 Credit Cards Total Credit Cards Other Current Liabilities 20200 Accrued Salaries Total Other Current Liabilities 0.00 26,375.00 -26,375.00 161,666.51 168,362.51 -6,696.00 28001 Business Loan 1,207,401.72 1,333,423.72 -126,022.00 Total Long Term Liabilities 1,207,401.72 1,333,423.72 -126,022.00 1,369,068.23 1,501,786.23 -132,718.00 Total Current Liabilities Long Term Liabilities Total Liabilities Page 2 of 7 7:08 AM 11/04/15 Accrual Basis Phoenix Medical Balance Sheet As of December 31, 2014 Dec 31, 14 Dec 31, 13 $ Change Equity 30100 Capital Stock 1,000.00 1,000.00 0.00 -400,000.00 0.00 -400,000.00 32000 Retained Earnings 3,103,563.25 3,103,563.25 0.00 Net Income 2,439,206.00 0.00 ### Total Equity TOTAL LIABILITIES & EQUITY 5,143,769.25 6,512,837.48 3,104,563.25 4,606,349.48 ### ### 31400 Shareholder Distributions Page 3 of 7 Phoenix Medical 7:09 AM 11/04/15 Accrual Basis Profit & Loss January through December 2014 Jan - Dec 14 Ordinary Income/Expense Income 43700 Fee for Service Income 47300 Refunds Total Income 5,615,706.00 -17,633.00 5,598,073.00 Expense 60000 Advertising and Promotion 60200 Automobile Expense 1,252.00 11,961.00 60400 Bank Service Charges 8,808.00 61000 Business Licenses and Permits 5,611.00 61100 Charitable Contributions (Cash) 100,000.00 61700 Computer and Internet Expenses 13,575.00 62400 Depreciation Expense 62500 Dues and Subscriptions 628,702.00 8,327.00 62600 Equipment Rental 62610 Laser Facility Rent 62600 Equipment Rental - Other Total 62600 Equipment Rental 63300 Insurance Expense 63400 Interest Expense 14,979.00 201,106.00 216,085.00 55,356.00 63,678.00 63600 Laboratory Testing Fees 121,653.00 64300 Meals and Entertainment 8,362.50 64400 Medical Records and Supplies 103,456.00 66700 Professional Fees 123,945.00 67200 Repairs and Maintenance 18,855.00 67800 Salaries and Wages 67810 Officers Compensation 940,000.00 67800 Salaries and Wages - Other 321,580.00 Total 67800 Salaries and Wages 1,261,580.00 68000 Taxes 68010 Payroll Taxes 68020 State Tax Total 68000 Taxes 206,103.00 30,652.00 236,755.00 68500 Uniforms 16,121.00 68600 Utilities 30,364.00 Total Expense Net Ordinary Income 3,034,446.50 2,563,626.50 Other Income/Expense Other Income 70200 Interest Income 70222 Tax Exempt Interest 70300 Sublease Rents 71000 Dividends 833.00 0.00 240,000.00 80,000.00 Page 4 of 7 7:09 AM 11/04/15 Accrual Basis Phoenix Medical Profit & Loss January through December 2014 Jan - Dec 14 75000 Gain on Sale of Assets Total Other Income 75,000.00 395,833.00 Other Expense M-1 AC M-1 Accrual to Cash Adjustment Total Other Expense Net Other Income Net Income 13,597.00 13,597.00 382,236.00 2,945,862.50 Schedule M-1 Line 10 Page 5 of 7 Phoenix Medical 12:55 PM 10/26/15 Accrual Basis Profit & Loss January through December 2014 Jan - Dec 14 Ordinary Income/Expense Income 43700 Fee for Service Income 47300 Refunds Total Income 5,050,583.00 -17,633.00 5,032,950.00 Expense 60000 Advertising and Promotion 60200 Automobile Expense 1,252.00 11,961.00 60400 Bank Service Charges 8,808.00 61000 Business Licenses and Permits 5,611.00 61100 Charitable Contributions (Cash) 60,000.00 61700 Computer and Internet Expenses 62400 Depreciation Expense 62500 Dues and Subscriptions 13,575.00 628,702.00 8,327.00 62600 Equipment Rental 62610 Laser Facility Rent 62600 Equipment Rental - Other Total 62600 Equipment Rental 63300 Insurance Expense 63400 Interest Expense 14,979.00 201,106.00 216,085.00 55,356.00 63,678.00 63600 Laboratory Testing Fees 121,653.00 64300 Meals and Entertainment 16,725.00 64400 Medical Records and Supplies 103,456.00 66700 Professional Fees 123,945.00 67200 Repairs and Maintenance 18,855.00 67800 Salaries and Wages 67810 Officer Compensation 940,000.00 67800 Salaries and Wages - Other 321,580.00 Total 67800 Salaries and Wages 1,261,580.00 68000 Taxes 68010 Payroll Taxes 68020 State Tax Total 68000 Taxes 68500 Uniforms 68600 Utilities Total Expense Net Ordinary Income 206,103.00 35,041.00 241,144.00 16,121.00 30,364.00 3,007,198.00 2,025,752.00 Other Income/Expense Other Income 70200 Interest Income 70222 Tax Exempt Interest 70300 Sublease Rents 833.00 17,621.00 240,000.00 12:55 PM 10/26/15 Accrual Basis Phoenix Medical Profit & Loss January through December 2014 Jan - Dec 14 71000 Dividends 80,000.00 75000 Gain on Sale of Assets 75,000.00 Total Other Income Net Other Income Net Income INFORMATION ONLY - NOT TO INPUT. 413,454.00 413,454.00 2,439,206.00 Schedule M-1 Line 1