I am having difficulty filling out the deduction part to this 1120 page one.

Page 1 of 5 ACC 316 Fed Tax II 1120 Corporation Tax Project The purpose of this project is to give you an idea of what some of the job responsibilities are like for a staff accountant in a CPA firm. You have been given the trial balance of White Pine, Inc. for their fiscal year ended December 31. As will be seen in the succeeding pages, the trial balance will require some adjustments to accurately prepare form US 1120 and to meet certain other requirements of this project. Using the information and forms given to you, please complete the following requirements to earn the maximum credit possible from this project. REOUIRED: 1) Prepare all adjusting entries that are required for the books. Set up a 10 column electronic spreadsheet with the beginning trial balance, adjusting entries, adjusted trial balance and income statement/balance sheet columns. 2) Prepare form US 1120 following the requirements of the IRS as discussed in class. 3) The project is due April 22, 2013. 4) Sign the return as the paid preparer. Page 2 of 2 The following items are to be considered in preparing adjusting journal entries and in the preparation of form US 1120. 1) White Pine uses the allowance method to value its accounts receivable and to determine its bad debt expense for book purposes. Specifically, they "age" accounts receivable quarterly to estimate their bad debt expense. However, due to an error in their aging process, the allowance for doubtful accounts account should have a balance of $10,000.00. Specific accounts receivable written off during the year totaled $3,600.00. 2) A review of their insurance register showed that the prepaid insurance account is overstated by $1,400.00. 3) A review of their leases shows that the prepaid rent account is understated by $2,100.00. 4) Goodwill expenses have not been recorded to date. The proper amount to expense this year is $1,800.00. 5) A review of their loan agreements shows that interest on the mortgage has not been accrued at year end for the amount of $875.00. 6) An examination of payroll records shows that an accrual for salaries and wages should be made for $3,200.00. 7) Bonuses for all employees are to be accrued in an amount equal to 12% of total current year salaries and wages. 8) The following accruals for payroll taxes are to be made at year end: FICA - $1,200, FUTA - $200, SUTA - $450 9) Depreciation of $825 on a piece of equipment purchased in November was accidently omitted when computing depreciation expense. 10) Fully depreciated equipment costing $11,000 was scrapped for $-0- value. No entry was made to record the retirement of the equipment. 11) A physical inventory showed that book value of inventory exceeded the physical count. This was explained by the fact that a sale of merchandise was made on December 30 and it was not properly recorded in the current year. It was mistakenly deferred to the next year. The buyer picked up the merchandise on December 31. The merchandise sold for $14,000 and its cost was $9,800. (Note: White Pine uses the perpetual lifo costing method for its inventory.) 12) An inventory of office supplies shows that there is $1,450.00 of supplies on hand at year end. Page 3 of 5 13) White Pine decided to drop its coverage of officers life insurance and to self insure the officers itself. On December 31 they received a check for $5,000 for the balance of the Cash Surrender Value of the policies. No entry has been made to record this transaction. 14) An accrual is to be made for additional charitable contributions of $2,500.00. 15) An analysis of the mortgage payable shows that the current portion is $3,900.00. Make an entry to reclassify this amount. 16) Accrued interest on the investment in long term bonds has not been recorded. The amount to accrue is $700.00. 17) The Board of Directors has passed a resolution to appropriate an additional $15,000.00 of retained earnings for self-insurance purposes. 18) A maintenance and repair item for $2,500 was incorrectly recorded as an equipment purchase. Depreciation of $250 was also mistakenly taken on the "asset". 19) An advertising expenditure of $5,000 was fully expensed. Analysis shows, however, that $2,000 of that cost applies to the next year. 20) Accrue Federal Income Tax payable. Use actual FIT rates and ignore state and city rates. There are no credits available. Additional information needed to complete the return: 1) White Pine is located at 1890 Chipper St., Mill Point, MI 49456. 2) Employer ID# is 38-0281147. 3) White Pine incorporated on 1-1-70. 4) White Pine uses lower of cost or market to value its inventory. 5) White Pine is a retailer of quality unfinished white pine rustic furniture. Their business code is 5700. 6) The accrual method of accounting is used. 7) Of the $4,500 of interest income received, $1,500 is from tax-free bonds. 8) All questions on page 3 should be answered no. . Page 4 of 5 9) The officers of White Pine are Mr. Tim Burr who is President and Treasurer and works 100% of the time. He owns 45% of the common stock and his social security number is 818-76-2436. Mr. Arnold (Buzz) Sawyer is Vice President and Secretary and works 100% of the time. He owns 40% of the common stock. His social security number is 616-42-1358. Tim earns $42,000 per year and Buzz earns $40,000 per year. 10) Dividend income received was from a firm in which they own 5% of its common stock. 11) Beginning inventory was $126,000 and net purchases were $1,692,400.00. Perpetual lifo is used by White Pine. 12) Estimated tax payment of $75,000 was made during the year. 13) On page 4 of the US 1120, Schedule L, ignore the beginning of the year values for the balance sheet. 14) The value of unappropriated retained earnings in the trial balance is the ending value for last year. 15) Complete form US 1120. Page 5 of 5 WHITE PINE, INC. Trial Balance December 31, Current Period Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Marketable Securities Prepaid Insurance Prepaid Rent Office Supplies Investment - LT Bonds Building Accumulated Depreciation Equipment Accumulated Depreciation Land Cash Surrender Value-Officer Life Ins. Goodwill Accounts Payable Notes Payable - ST Salaries Payable FIT Payable Miscellaneous Payables Mortgage Payable Common Stock, $10 par Paid-In Capital Retained Earnings, Appropriated Retained Earnings, Unappropriated Sales Sales Return & Allowance Dividends Interest Miscellaneous Income Cost of Goods Sold Salaries & Wages Repairs & Maintenance Bad Debt Expense Rent Expense Taxes Interest Expense Charitable Contributions Pensions Depreciation Expense Advertising TOTALS $ 28,331 108,700 $ 5,000 298,400 120,000 5,000 10,000 2,266 80,000 180,000 60,280 116,700 44,000 20,000 5,000 14,300 34,834 4,300 3,300 75,000 4,100 264,100 200,000 50,000 30,000 167,833 2,010,000 20,000 10,000 4,500 1,000 1,520,000 168,000 800 1,600 9,200 15,000 27,200 23,150 18,300 17,600 ___8,700 $2,893,247-- ___ $2,893,247-- Check Figures Gross Receipts Line 1C, Page 1 Form 1120 - $2,004,000 Total Income Line 11, Page 1 Form 1120 - 488,900 Taxable Income before Net Operating Loss, Page 1 Form 1120 - 171,936 Taxable Income, Line 30 Page 1 Form 1120 - 164,936 Total Assets (End of Year) - Line 15 - 903,751 Retained Earnings - Unappropriated (End of Year) - 269,148 Net Income per Books prior to AJE #20 - 163,890 Net Income per Books, Line 1 Schedule M-1 - 116,315 Taxable Income, line 10 Schedule M-1 - 171,936 (Remember this is the amount before the Dividend Received Deduction) Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Interest Recievable Marketable Securities Prepaid Advertising Prepaid Insurance Prepaid Rent Office Supplies Investment - LT Bonds Building Accumulated Depreciation Equipment Accumulated Amortization Accumulated Depreciation Land Cash Surrender Value-Officer Life Ins. Goodwill Accounts Payable Notes Payable - ST Accrued payroll Taxes Salaries Payable Accrued Charitable Contributions FIT Payable Miscellaneous Payables Mortgage Payable Current Mortgage Payable Common Stock, $10 par Paid-In Capital Retained Earnings, Appropriated Retained Earnings, Unappropriated Sales Sales Return & Allowance Dividends Interest Miscellaneous Income FIT Recievable Cost of Goods Sold Salaries & Wages Repairs & Maintenance Bad Debt Expense Rent Expense Taxes Morgatage Interest Expense Interest Expense Charitable Contributions Pensions Supply Expense FIT Expense Tax Expense Depreciation Expense Advertising Amortization expense Bonus Expense Insurance Expense TOTALS Unadjusted DR CR 28,331 $ 108,700 Adjusment DR CR 5000 14000 5000 9800 5,000 298,400 700 120,000 2000 1400 5,000 10,000 2,266 80,000 180,000 2100 816 825 13500 1800 60,280 116,700 11250 44,000 20,000 5,000 14,300 Adjusted Balance DR CR 33,331 122,700 10,000 288,600 700 120,000 2,000 3,600 12,100 1,450 80,000 180,000 61,105 103,200 1800 32,750 20,000 5000 14,300 34,834 4,300 34,834 5,175 1,850 27,044 2500 875 1,850 23744 2500 75000 3,300 75,000 4,100 3900 260,200 200,000 50,000 45,000 152,833 2,024,000 4,100 3900 3900 264,100 200,000 50,000 30,000 167,833 2,010,000 15000 15000 14000 20,000 20,000 10,000 4,500 1,000 700 27425 9800 3200 2500 5000 1,520,000 168,000 800 1,600 9,200 15,000 2100 875 - 27,200 23,150 18,300 2500 816 47575 1850 825 17,600 8,700 2,893,247 2893247 Schedule M-1 Book income 116315 Federal Income Tax expense 47575 Allowence for bad debts 3000 charitable contribution 6546 Tax exempt income -1500 Taxable income before dividends received 171936 Dividends received deduction Taxable income -7000 164936 1800 20544 1400 180060 250 2000 180060 10,000 5,200 1,000 27425 1,529,800 171,200 3,300 6,600 7,100 15,000 875 27,200 25,650 18,300 816 47,575 1,850 18,175 6,700 1800 20544 1400 2933291 2933291 Form 1120 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) . . . 3 Personal service corp. (see instructions) . . . For calendar year 2012 or tax year beginning Name Deductions (See instructions for limitations on deductions.) Tax, Refundable Credits, and Payments B Employer identification number . . . . . . . . . . White Pne. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38-0281147 . . . . . . . . . . TYPE Number, street, and room or suite no. If a P.O. box, see instructions. C Date incorporated . . . .OR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Before 1900, see Options tab. . . . . . . . . . PRINT 1890 Chipper St 1/1/1970 . . . . . . . . . . City or town . . . . . . . . . . . State . . . . . . . . ZIP code . . . . . D . . . assets .(see .instructions) . . . . . . . . . . . Total . . . . . . . . . . . . . . Mill Point. . . . . . . . . . . . MI . . . . . . . . .49456 . . . . . $ . . . . . . . . . . . . . . . . . . E Check if: (1) Initial return (2) Final return (3) Name change (4) 903,751 Address change 1a b c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29a b c 30 31 32 Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . .1a. . . . 2,024,000 . . . . . . . . . . . . . . . . . . . . Returns and allowance . . . . . . . . . . . . . . . . . . . . . . . . . . .1b. . . . . . 20,000 . . . . . . . . . . . Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,004,000 . . . . . 1c . . . . Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . .1,529,800 . . . . . . . . . Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . 474,200. . . . . . . . Dividends (Schedule C, line 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . .10,000 . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 . . . . . . 3,700 . . . . . . . Gross rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 . . . . . . . . . . . . . Capital gain net income (attach Schedule D (Form 1120)) . . . . . . . . . . . . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . . . . . . Other income (see instructionsattach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 . . . . . . 1,000 . . . . . . . . Total income. Add lines 3 through 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .488,900 . . . . . 11 . . . Compensation of officers (see instructionsattach Form 1125-E) . . . . . . . . . . . . . . . . . . . . . .12. . . . . 82,000. . . . . . . . Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 . . . . 171,200 . . . . . . . . . Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . . . . . .3,300 . . . . . . . Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 . . . . . . 6,600 . . . . . . . . Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 . . . . . . . . . . . . . Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 . . . . . 1,850 . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . 27,200 . . . . . . . . . Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 . . . . . 17,035 . . . . . . . . Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . . . . . . 20 . . . . . . . . . . . . . Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21. . . . . . . . . . . . . Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 . . . . . 6,700 . . . . . . . . Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 . . . . .18,300 . . . . . . . . Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 . . . . . . . . . . . . . . Domestic production activities deduction (attach Form 8903) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 1,400 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 . . . . . . . . . . . . . Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 . . . . .335,585 . . . . . . . . . Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11 . . . . . .28 . . . . 153,315. . . . . . . . . Net operating loss deduction (see instructions) . . . . . . . . . . . . . . . . . 29a. . . . . . . . . . . . . . . . . . . . . . . . . Special deductions (Schedule C, line 20) . . . . . . . . . . . . . . . . . . . 29b . . . . . 7,000 . . . . . . . . . . . . . . . . . . . . Add lines 29a and 29b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29c . . . . . 7,000 . . . . . . . . . Taxable income. Subtract line 29c from line 28 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 . . . . .146,315 . . . . . . . . . . Total tax (Schedule J, Part I, line 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 . . . . . 40,313 . . . . . . . . Total payments and refundable credits (Schedule J, Part II, line 21) . . . . . . . . . . . . . . . . . . . . . 32 . . . . . . . 0 . . . . . . 33 34 35 36 Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . . . . . . . . . . . . . 33 . . . . . . . . . . . . . . . 40,313 Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed . . . . . . . . . . . . .34 . . . . . . . . . . . . . 0 Overpayment. If line 32 is larger than the total of lines 31 and 33, enter amount overpaid . . . . . . . . . . . . 35 . . . . . . . . . . . . . Enter amount from line 35 you want:Credited to 2013 estimated tax Refunded 0 36 Sign Here 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. May the IRS discuss this return with the preparer shown below (see instructions)? X Yes No Tim Burr Signature of officer Print/Type preparer's name Paid Preparer Use Only Date Title Preparer's signature Date SELF-PREPARED RETURN Firm's name City Check if self-employed PTIN Firm's EIN Firm's address For Paperwork Reduction Act Notice, see separate instructions. HTA , ending Information about Form 1120 and its separate instructions is at www.irs.gov/form1120. Schedule M-3 attached Income 4 OMB No. 1545-0123 U.S. Corporation Income Tax Return Phone no. State ZIP code Form 1120 (2012) Form 1120 (2012) Schedule C White Pne Dividends and Special Deductions (see instructions) 38-0281147 (a) Dividends received (b) % Page 2 (c) Special deductions (a) (b) 1 Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 . . .70 . . . . . . . . 7,000 . . . . 2 Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 . . . . . . . . . . 0 3 see Dividends on debt-financed stock of domestic and foreign corporations . . . . . . . . . . . . . . . . . . instructions . . . . . . . . . 0 . . . . . . . 4 Dividends on certain preferred stock of less-than-20%-owned public utilities . . . . . . . . . . . . . . . . . .42 . . . . . . . . . . 0 . . . . . 5 Dividends on certain preferred stock of 20%-or-more-owned public utilities . . . . . . . . . . . . . . . . . . 48 . . . . . . . . . . .0 . . . . 6 Dividends from less-than-20%-owned foreign corporations and certain FSCs . . . . . . . . . . . . . . . . . 70 . . . . . . . . . . .0 . . . . 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs . . . . . . . . . . . . . . . . . 80. . . . . . . . . . . 0. . . . . 8 Dividends from wholly owned foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 . . . . . . . . . . . 0 9 10 7,000 Total. Add lines 1 through 8. See instructions for limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 . . . . . . . . . . . . . . . . . . . 100. . . . . . . . . . . 0 . . . . 11 Dividends from affiliated group members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 . . . . . . . . . . 0. . . . . . 12 Dividends from certain FSCs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100. . . . . . . . . . 0 . 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 . . . . . . . . . . . . .10,000 . . . . . . . . . . . . . . . . . . . . 20 Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b . . . . . . . . . . . . . . . . . . . . . . . . . 7,000 Form 1120 (2012) Form 1120 (2012) Schedule J White Pne 38-0281147 Page 3 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)) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Income tax. Check if a qualified personal service corporation (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . 40,313 . . . . . . . . 3 4 5a b c Alternative minimum tax (attach Form 4626) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . 40,313 . . . . . . . . Foreign tax credit (attach Form 1118) . . . . . . . . . . . . . . . . . . . . . . 5a. . . . . . . . . . . . . . . . . . . . . . . . . . Credit from Form 8834, line 30 (attach Form 8834) . . . . . . . . . .. . . . . . . .. . . .5b . . . . . . . . . . . . . . . . . . . . . . . . . . General business credit (attach Form 3800) . . . . . . . . . . . . . . . . . . . . 5c. . . . . . . . . . . . . . . . . . . . . . . . . . d e 6 7 8 9a b c Credit for prior year minimum tax (attach Form 8827) . . . . . . . . . . . . . . . . 5d . . . . . . . . . . . . . . . . . . . . . . . . . . Bond credits from Form 8912 . . . . . . . . . . . . . . . . . . . . . . . . . . 5e . . . . . . . . . . . . . . . . . . . . . . . . . . Total credits. Add lines 5a through 5e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . 0 . . . . . . . Subtract line 6 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 . . . . . 40,313 . . . . . . . . Personal holding company tax (attach Schedule PH (Form 1120)) . . . . . . . . . . . . . . . . . . . . . . . . 8. . . . . . . . . . . . . Recapture of investment credit (attach Form 4255) . . . . . . . . . . . . . . . . . .9a . . . . . . . . . . . . . . . . . . . . . . . . . . Recapture of low-income housing credit (attach Form 8611) . . . . . . . . . . . . . . 9b . . . . . . . . . . . . . . . . . . . . . . . . . . Interest due under the look-back methodcompleted long-term contracts (attach Form 8697) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9c . . . . . . . . . . . . . . . . . . . . . . . . . . d Interest due under the look-back methodincome forecast method (attach Form 8866) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9d . . . . . . . . . . . . . . . . . . . . . . . . . e Alternative tax on qualifying shipping activities (attach Form 8902) . . . . . . . . . . . .9e. . . . . . . . . . . . . . . . . . . . . . . . . . f Other (see instructionsattach statement) . . . . . . . . . . . . . . . . . . . . . 9f . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Total. Add lines 9a through 9f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10. . . . . . . .0 . . 11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 . . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 11 . . . . . 40,313 . . . . . . . . . Part II-Payments and Refundable Credits 12 13 14 2011 overpayment credited to 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 . . . . . . . . . . . . . . 2012 estimated tax payments . . . . . . . . . . . . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . 13 . . . . . . . . . . . . . . 2012 refund applied for on Form 4466 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . ( . . . . . . . . .) . . . . 15 0 Combine lines 12, 13, and 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 . . . . . . . . . . . . . . 16 17 Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 . . . . . . . . . . . . . . Withholding (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 . . . . . . . . . . . . . . 18 Total payments. Add lines 15, 16, and 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . 0. . . . . . Refundable credits from: Form 2439 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a . . . . . . . . . . . . . . . . . . . . . . . . . . Form 4136 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19b . . . . . . . . . . . . . . . . . . . . . . . . . . Form 8827, line 8c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19c. . . . . . . . . . . . . . . . . . . . . . . . . . Other (attach statementsee instructions) . . . . . . . . . . . . . . . . . . . . .19d . . . . . . . . . . . . . . . . . . . . . . . . . . Total credits. Add lines 19a through 19d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 . . . . . . . 0 . . . . . . . Total payments and credits. Add lines 18 and 20. Enter here and on page 1, line 32 . . . . . . . . . . . . . . . 21 . . . . . . . 0 . . . . . . 19 a b c d 20 21 Schedule K Other Information (see instructions) a Cash b X Accrual c Yes Other (specify) No 1 Check accounting method: 2 a b c 3 See the instructions and enter the: 5700 Business activity code no. Retailer Business activity Unfinished White Pine Rustic Furniture Product or service Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? . . . . . . . . . . . . . . . . . . . . . . . X . . . . EIN If "Yes," enter name and EIN of the parent corporation Name 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) . . . . . . . . . . . . . . . . .X . . . . 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) . . . . . . . . X . . . . . . . Form 1120 (2012) Form 1120 (2012) Schedule K White Pne 38-0281147 Page 4 Other Information continued (see instructions) Yes No 5 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 onForm 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) (iii) Country of Incorporation X (iv) Percentage Owned in Voting Stock 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 . . . . . . X . . . . If "Yes," complete (i) through (iv) below. (i) Name of Entity 6 (ii) Employer Identification Number (if any) (iii) Country of Organization (iv) Maximum Percentage Owned in Profit, Loss, or Capital 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.) . . . . . . . . . . . . . . . . . . . X. . . . 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 the total voting power of all (a) classes of the corporation's stock entitled to vote or(b) the total value of all classes of the corporation's stock? . . . . . . . . . . . . . . . . . . . . X For rules of attribution, see section 318. If "Yes," enter: (i) Percentage owned and (ii) Owner's country (c) The corporation may have to fileForm 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 8 Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . . . . . . . . . . . . . . . . . . . . 9 If checked, the corporation may have to fileForm 8281, Information Return for Publicly Offered Original Issue Discount Instruments. Enter the amount of tax-exempt interest received or accrued during the tax year $ 1,500 3 10 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 . . . . . . . . . . . . . . . . . . . . . . . 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. $ 12 Enter the available NOL carryover from prior tax years (do not reduce it by any deduction on line 29a.) 13 Are the corporation's total receipts (line 1c plus lines 4 through 10 on page 1) for the tax year its total assets at the end of the and tax year less than $250,000? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X . . . . If "Yes," the corporation is not required to complete Schedules L, M-1, and M-2 on page 5. Instead, enter the total amount of cash distributions and the book value of property distributions (other than cash) made during the tax year. $ 14 Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement (see instructions)? . . . . . . . . . . . . . . X . . . . If "Yes," complete and attach Schedule UTP. 15a Did the corporation make any payments in 2012 that would require it to file Form(s) 1099? . . . . . . . . . . . . . . . . . . . . . . . . X . . . . b If "Yes," did or will the corporation file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X. . . . 16 17 18 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? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X . . . . During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value) X 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? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X. . . . Form 1120 (2012) Form 1120 (2012) Schedule L White Pne Balance Sheets per Books Assets 38-0281147 Beginning of tax year (a) (b) Page 5 End of tax year (c) (d) 1 2a b 3 4 5 6 7 8 9 10a b 11a b 12 13a b 14 15 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,331 . . . . . . . Trade notes and accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122,700 . . . . . . . . . . . . . . . . . Less allowance for bad debts . . . . . . . . . . . . ( . . . . . . . ) . . . . . . . . 0. .( . . . . 10,000) . . . . . 112,700. . . . . . . . . . . . . Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126,000 . . . . . . . . . . . . . . 288,600 . . . . . . . . . . . . U.S. government obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax-exempt securities (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other current assets (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,400. . . . . . . . Loans to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mortgage and real estate loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other investments (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200,000 . . . . . . . . Buildings and other depreciable assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,000 . . . . . . . . . . . . . . . . . 61,105) Less accumulated depreciation . . . . . . . . . . . (. . . . . . . .) . . . . . . . . 0 . ( . . . . . . . . . . . . . 118,895 . . . . . . . . . Depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,200 . . . . . . . . . . . . . . . . . 0 Less accumulated depletion . . . . . . . . . . . . .( . . . . . . . ) . . . . . . . . . . (. . . . . 32,750) . . . . . . 70,450 . . . . . . . . . . Land (net of any amortization) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 . . . . . . . Intangible assets (amortizable only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,300 . . . . . . . . . . . . . . . . Less accumulated amortization . . . . . . . . . . . (. . . . . . . .) . . . . . . . . 0 . ( . . . . . 1,800) . . . . . .12,500 . . . . . . . . . . . Other assets (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,875. . . . . . . . Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126,000 . . . . . . . . . . . . . . .903,751 . . . . . . . . . . . 16 17 18 19 20 21 22 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,834 . . . . . . . Mortgages, notes, bonds payable in less than 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,075 . . . . . . . . Other current liabilities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35,494 . . . . . . . Loans from shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mortgages, notes, bonds payable in 1 year or more . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,200 . . . . . . . . Other liabilities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Capital stock: a Preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . .200,000 . . . . . .200,000 . . . . . . . . . . . Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 . . . . . . . . Retained earningsAppropriated (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 . . . . . . . . Retained earningsUnappropriated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152,833 . . . . . . . . Adjustments to shareholders' equity (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Less cost of treasury stock . . . . . . . . . . . . . . . . . . . . . . ( . . . . . . . ). . . . . . . . . . . ( . . . . . . . ). . . . . Total liabilities and shareholders' equity . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . . . . . . . . . 787,436 . . . . . . . . Liabilities and Shareholders' Equity 23 24 25 26 27 28 Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or moresee instructions Net income (loss) per books . . . . . . . . . . . . . . . 105,887. . . Income recorded on books this.year.not . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . Federal income tax per books . . . . . . . . . . . . . . . 40,313 . . . included on .this return. (itemize):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Excess of capital losses over capital gains . . . . . . . . . . . . . . . . Tax-exempt. interest . .$ . . . . 1,500. . . . . . . . . . . . . . . . . . . . . . Income subject to tax not recorded on books 1,500 this year (itemize): 0 8 Deductions on this return not charged 5 Expenses recorded on books this year not against book income this year (itemize): deducted on this return (itemize): a Depreciation . . . . $ . . . . . . . . . . . . . . . . . . . . a Depreciation . . . . . . . . $ . . . . . . . . . . . . . . . . . b. Charitable contributions . . $. . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Charitable contributions . . . . $ . . . . . 8,615 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Travel and entertainment . . . $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3 4 6 0 8,615 9 Add lines 7 and 8 . . . . . . . . . . . . . . . . 1,500 . . . . . . . Add lines 1 through 5 . . . . . . . . . . . . . . . . . .154,815 .10 . Income (page .1, .line 28)line 6. less.line 9 . . . . . 153,315. . . . . . . . . . . . . . . . . . . . . . . . Schedule M-2 1 2 3 4 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) Balance at beginning of year . . . . . . . . . . . . . . . . . . . 5 . Distributions: . . a . Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net income (loss) per books . . . . . . . . . . . . . . . 105,887 . . . . . . . . . b Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . Other increases (itemize): c Property . . . . . . . . . . . . . . . . . . 6 Other decreases (itemize): 0 7 Add lines 5 and 6 . . . . . . . . . . . . . . . . . . 0 . . . . Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . 105,887. . . Balance .at .end of year (line 4 less line .7) . . . . . . 105,887 . . . . . . . 8 . . . . . . . . . . . . . . . . . Form 1120 (2012) White Pne 38-0281147 Line 5 (1120) - Interest Income 1 1 3,700 2 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . 3,700 . . Line 13 (1120) - Salaries and Wages 1 Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 . . . . . . . . . . . . . . . . . . . . 2 Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . 171,200. . . . . . . . . . . . . . . . . 3 3 4 Total salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . 171,200. . . . . . . . . Salaries and wages reported elsewhere on return: 5 Amounts included in Cost of Goods Sold . . . . . . . . . . . . . . . . . . . 5 . . . . . . 0 . . . . . . . . . . . . . . . 6 Elective contributions to a section 401(k) cash or deferred arrangement, or amounts contributed under a salary reductions SEP agreement or a SIMPLE IRA plan . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . . . . . . . . . 7 Total salaries and wages reported elsewhere on return . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . 0 . . . . . Less employment credits: 8 From Form 5884 - Work Opportunity Credit . . . . . . . . . . . . . . . . . .8 . . . . . . .0 . . . . . . . . . . . . . 9 From Form 8844 - Empowerment Zone Employment Credit . . . . . . . . . . . 9 . . . . . . 0 . . . . . . . . . . . . . . . 10 From Form 8845 - Indian Employment Credit . . . . . . . . . . . . . . . . .10 . . . . . . 0. . . . . . . . . . . . . . . 11 11 12 12 13 Total employment credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 . . . . . . 0. . . . . . . 14 Reduction of expenses for other offsetting credits (see attached statement) . . . . . . . . . . . . . 14 . . . . . . 0 . . . . . . . 15 Total salaries and wages less employment credits and expense reductions . . . . . . . . . . . . . 15 . . . . 171,200 . . . . . . . . . Line 17 (1120) - Taxes and Licenses 1 1 1,850 2 Sub Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 . . . . . 1,850 . . . . . . . 3 Total taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . .1,850 . . . . . . . . Line 18 (1120) - Interest Expense 1 1 27,200 2 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 . . . . 27,200 . . . . . . . . White Pne 38-0281147 Line 19 (1120) - Charitable Contributions (A) Amount 1 a b 2 a b c d e 3 4 5 (B) Adjustment under Section 170(d)(2)(B) (C) Deduction Allowed in Current Year (D) Contribution Carryover Contribution for current year: Direct contribution . . . . . . 25,650 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . From partnerships . . . . . . . . 0 1 . . . . . . 25,650. . . . . . . . 0 . . . . . 17,035 . . . . . . 8,615 . . . . . . . . . . . . . . . Carryover from: 5th preceding period . . . . . . . . 2a . . . . . . . . . . . . . . . . . . . . . . . . .0 . . . . . . . . 0 . . . . . . 4th preceding period . . . . . . . . 2b . . . . . . . . . . . . . . . . . . . . . . . . .0 . . . . . . . . 0 . . . . . . 3rd preceding period . . . . . . . . 2c . . . . . . . . . . . . . . . . . . . . . . . . .0 . . . . . . . . 0 . . . . . . 2nd preceding period . . . . . . . . 2d . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . .0 . . . . . . . 1st preceding period . . . . . . . . 2e . . . . . . . . . . . . . . . . . . . . . . . . .0 . . . . . . . . 0 . . . . . . Totals . . . . . . . . . . . . . . 3 . . . . . .25,650 . . . . . . . . 0. . . . . . 17,035 . . . . . . 8,615 . . . . . . . . . . . . . Carryover to expire next year due to 5 year limitation . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . 0 . . . . . . . Total contribution carryover to next year . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . 8,615 Computation of Section 179 Deduction for Estimated Charitable Contribution 6 7 8 9 10 Taxable Income computed without contribution deduction or Section 179 . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . 170,350 Section 179 deduction for purposes of contribution limitation . . . . . . . . . . . . . . . . . . . 7 . . . . . . 0 . . . . . . . Taxable income less Section 179 deduction. Subtract line 7 from line 6 . . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . 170,350 Maximum contribution limitation. Enter 10% of line 8 . . . . . . . . . . . . . . . . . . . . . . .9 . . . . 17,035 . . . . . . . . Contribution deduction considering Section 179 limitation. Smaller of line 3, col A minus lines 2a through 2e, col B or line 9 . . . . . . . . . . . . . . . . . . 10 . . . . 17,035. . . . . . . . . Computation of Actual Charitable Contribution 11 12 13 14 15 16 Actual Section 179 deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . . . . . . 0 . . . . . . . Taxable income less actual Section 179 deduction. Subtract line 11 from line 6 . . . . . . . . . . . . 12 . . . 170,350. . . . . . . . . . Net operating loss deductions limited by line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . 13 Taxable income for purposes of contribution deduction. Subtract line 13 from line 12 . . . . . . . . . .14 . . . 170,350. . . . . . . . . Maximum contribution limitation. Enter 10% of line 14 . . . . . . . . . . . . . . . . . . . . . . 15 . . . . 17,035. . . . . . . . . Actual contribution deduction. Smaller of line 3, col A minus lines 2a through 2e, col B or line 15 . . . . . 16 . . . . 17,035 . . . . . . . . . Computation of Qualified Conservation Property Contributions by Farmers and Ranchers 17 Carryover of 100% contribution from 2011 . . . . . . . . . . . . . . . . . . . . 18 Enter the amount of qualified conservation property contributions Do not include any amount entered in line 1(A) above Direct contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . From partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Net 100% contribution available for current year . . . . . . . . . . . . . . . . . . 20 Taxable income for purposes of 100% contribution deduction. Subtract line 16 from line 14 . 21 100% contribution deduction for current year. Enter the smaller of line 19 or line 20 . . . . 22 Carryover of 100% contribution to 2013. Subtract line 20 from line 19 . . . . . . . . . . . . . . . .17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . . . . . . . . . . . . . 18 19 . . 20 . . 21 . . 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0 . .0 . 0 . . . . 0 . . 0 . . . . . . . . . . . . . . . . . . . . . . . . Part I - Contribution carryover, NOL carryover, and Taxable income without contribution deduction 1 2012 taxable income without contributions deduction . . . . . . . . . . . . . . . . . . . . . . .1 . . . . 170,350 . . . . . . . . 2 Contribution deduction available in 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 . . . . 25,650 . . . . . . . . 3 Prior year NOL carryover to 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . 0 . . . . . . . Part II - Determination of 2012 contributions converted to NOL under Section 170(d)(2)(B) 1 2 3 4 Taxable Income computed without contribution deduction . . . . . . . . . . . . . . . . . . . . . 1 . . . . 170,350 . . . . . . . . Net operating loss deductions. (NOL cannot exceed Part II, line 1) . . . . . . . . . . . . . . . . . 2 . . . . . . 0 . . . . . . . Taxable income for purposes of contribution deduction. Subtract line 2 from line 1 . . . . . . . . . . . 3 . . . . . . . . . . . . . 170,350 Maximum contribution (10% of line 1 when NOL is not applied to taxable income computed without contribution deductions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . 0. . . . . . 5 Actual contribution deduction allowed. Enter line 16 above . . . . . . . . . . . . . . . . . . . . 5 . . . . 17,035 . . . . . . . . . 6 Current year's Section 170(d)(2)(B) contribution deduction converted to NOL. Subtract line 5 from line 4 but do not enter more than the current year contribution less the actual contribution deduction . . . . . . . . . . . . . . . . . . . 6 0 Part III - Determination of 2012 contribution carryover to next year under Section 170(d)(2)(B) 1 2 3 4 5 Contribution deduction available in 2012. Enter Part I, line 2 above . . . . . . . . . . . . . . . . . 1 . . . . 25,650 . . . . . . . . . Contribution deducted for the tax year ending 2012. Enter line 16 above . . . . . . . . . . . . . . . 2. . . . . 17,035. . . . . . . . Current year's Section 170(d)(2)(B) contribution deduction converted to NOL. Enter Part II, line 6 above . . .3 . . . . . . .0 . . . . . Carryover to expire next year due to 5 year limitation. Enter Column D, line 4 above . . . . . . . . . . 4 . . . . . . 0 . . . . . . . Total contribution carryover to next year. Subtract lines 2, 3, and 4 from line 1 . . . . . . . . . . . . . 5 . . . . . 8,615 . . . . . . . White Pne 38-0281147 Line 9, Sch C (1120) - Dividends-Received Deduction after Limitation 1a Amount from line 28, page 1, Form 1120, without any domestic production activities deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,315 . . . . . . . . . . . . . 1a . . . b Adjustment under section 1059 . . . . . . . . . . . . . . . . . . . . . . 1b . . . . . . . . . . . . . . . . . . . . . c Capital loss carryback to the tax year under section 1212(a)(1) . . . . . . . . . .1c . . . . . . . . . . . . . . . . . . . . . d Refigured line 28, page 1, Form 1120 amount. Combine lines 1a through 1c . . . . . . . . . . . . 1d. . . . 153,315 . . . . . . . . . 2 Complete Schedule C, lines 10 through 12, column (c), and enter the total here . . . . . . . . . . . . 2 . . . . . . 0 . . . . . . . 3 Subtract line 2 from line 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . .153,315 . . . . . . . . . 4 Multiply line 3 by 80% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . .122,652 . . . . . . . . . 5a Add Schedule C, lines 2, 5, 7, and 8, column (c) . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . 5a b Enter the part of the deduction on Schedule C, line 3, column (c), that is attributable to dividends from 20%-or-more-owned corporations . . . . . . . . . . . . . . . 5b . . . . . . . . . . . . . . . . . . . . . c Add line 5a and line 5b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5c . . . . . . 0 . . . . . . 6 Enter the smaller of line 4 or 5c. If line 5c is greater than line 4, stop here; enter the amount from line 6 on line 9, column (c), and do not complete the rest of this worksheet . . . . . . . . . . . .6 . . . . . . .0 . . . . . 7a Enter the total amount of dividends from 20%-or-more-owned corporations that are included on Schedule C, lines 2, 5, 7, and 8, column (a) . . . . . . . . . . . . . . . . 7a . . . . . . 0 . . . . . . . . . . . . . . . b Enter the portion of dividends from 20%-or-more-owned corporations included on Schedule C, line 3, column (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7b c Add line 7a and line 7b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7c . . . . . . 0 . . . . . . 8 Subtract line 7c from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 . . . .153,315 . . . . . . . . . 9 Multiply line 8 by 70% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. . . . 107,321. . . . . . . . . 10 Subtract line 5c from the total of Schedule C, lines 1 through 8, column (c) . . . . . . . . . . . . . 10 . . . . . 7,000 . . . . . . . . 11 Enter the smaller of line 9 or line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 . . . . 7,000 . . . . . . . . 12 Dividends-received deduction after limitation (sec. 246(b)). Add lines 6 and 11. Enter the result here and on Schedule C, line 9, column (c) . . . . . . . . . . . . . . . . . . . . . . . 12 . . . . . 7,000 . . . . . . . . White Pne 38-0281147 Line 3, Sch J (1120) - Small Corporation Exempt from AMT Determination Complete this worksheet to determine if the corporation qualifies as a small corporation exempt from the alternative minimum tax. Yes No X Is this tax year the corporation's first year in existence? If "Yes", Stop here. The corporation is exempt from AMT with no other qualification requirements. Did the corporation lose small corporation status in a prior year? If so, enter the change date: If "Yes", Stop here. Once a corporation loses its small corporation status, it cannot qualify in any subsequent tax year. Tax Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Yes or N/A Annualized Gross Receipts Prior Three Year Average Enter Gross Receipts for 1995. Enter Gross Receipts for 1996. 0 Enter Gross Receipts for 1997. 0 Enter Gross Receipts for 1998. 0 Enter Gross Receipts for 1999. 0 Enter Gross Receipts for 2000. 0 Enter Gross Receipts for 2001. 0 Enter Gross Receipts for 2002. 0 Enter Gross Receipts for 2003. 0 Enter Gross Receipts for 2004. 0 Enter Gross Receipts for 2005. 0 Enter Gross Receipts for 2006. 0 Enter Gross Receipts for 2007. 0 Enter Gross Receipts for 2008. 0 Enter Gross Receipts for 2009. 0 Enter Gross Receipts for 2010. 0 Enter Gross Receipts for 2011. 2,018,700 0 No Did the corporation have average annual gross receipts of $5 million or less for the FIRST three-year period beginning after 1993 (for calendar year corps in existence on 1/1/1994 through 1996)? Were the corporation's average gross receipts for EVERY three-year period beginning after 1994 and ending before its tax year beginning in 2012 $7.5 million or less? (For calendar year corporations in existence on 1/1/1994, the three year periods are: 1995-1997, 1996-1998, 1997-1999, 1998-2000, 1999-2001, 2000-2002, 2001-2003, 2002-2004, 2003-2005, 2004-2006, 2005-2007, 2006-2008, 2007-2009, 2008-2010, 2009-2011). If the corporation had only one prior tax year, were the gross receipts for the prior tax year $5 million or less, (or the corporation was established before 1994)? White Pne 38-0281147 Schedule L (1120) - Balance Sheets per Books Assets Beginning Ending 1 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. . . . . . . 0. . . . . . 33,331 . . . . . . . . 2a Trade notes and accounts receivable . . . . . . . . . . . . . . . . . . . 2a . . . . . . . . . . . . 122,700 . . . . . . . . . 2b Less allowance for bad debts . . . . . . . . . . . . . . . . . . . . . . 2b . . . . . . . . . . . . 10,000 . . . . . . . . . 2c Net trade notes and accounts receivable . . . . . . . . . . . . . . . . . . 2c . . . . . . .0 . . . . . 112,700 . . . . . . . . . 3 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 . . . . 126,000 . . . . . 288,600 . . . . . . . . . . . . 4 U.S. government obligations . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . 5 Tax-exempt securities . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . 6 Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . 0. . . . . . 18,400. . . . . . . . 7 Loans to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . .7 . . . . . . . . . . . . . . . . . . . . . 8 Mortgage and real estate loans . . . . . . . . . . . . . . . . . . . . . .8 . . . . . . . . . . . . . . . . . . . . . 9 Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . 0 . . . . . 200,000. . . . . . . . . 10a Buildings and other depreciable assets . . . . . . . . . . . . . . . . . . 10a . . . . . .0 . . . . . 180,000 . . . . . . . . . . . 10b Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . 10b . . . . . . 0 . . . . . .61,105 . . . . . . . . . . 10c Net buildings and other depreciable assets . . . . . . . . . . . . . . . . .10c . . . . . . 0 . . . . .118,895 . . . . . . . . . . 11a Depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,200. . . . . . 11a . . . 11b Less accumulated depletion . . . . . . . . . . . . . . . . . . . . . . 11b . . . . . . . . . . . . 32,750. . . . . . . . . . 11c Net depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . 11c. . . . . . . . . . . . 70,450 . . . . . . 0 . . . 12 Land (net of any amortization) . . . . . . . . . . . . . . . . . . . . . . 12 . . . . . . 0 . . . . . 20,000 . . . . . . . . . . 13a Intangible assets (amortizable only) . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . 14,300. . . . . . 13a . . 13b Less accumulated amortization . . . . . . . . . . . . . . . . . . . . . 13b . . . . . . 0 . . . . . . 1,800 . . . . . . . . . . 13c Net intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . 13c . . . . . . 0 . . . . . .12,500. . . . . . . . . . 14 Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . . . . . . 0. . . . . . 28,875 . . . . . . . . . 15 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 . . . .126,000 . . . . .903,751 . . . . . . . . . . . . Liabilities and Capital 16 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 . . . . . . . . . . . . 34,834 . . . . . . . . . 17 Mortgages, notes, bonds payable in less than 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,075. . . . . . 17 . . 18 Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . 0 . . . . . 35,494 . . . . . . . . . . 19 Loans from shareholders . . . . . . . . . . . . . . . . . . . . . . . . 19 . . . . . . . . . . . . . . . . . . . . . 20 Mortgages, notes, bonds payable in 1 year or more . . . . . . . . . . . . . . 20 . . . . . . . . . . . .260,200 . . . . . . . . . 21 Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 . . . . . . 0 . . . . . . . 0 . . . . . . . . 22a Capital stock (preferred) . . . . . . . . . . . . . . . . . . . . . . . . 22a. . . . . . . . . . . . . . . . . . . . . 22b Capital stock (common) . . . . . . . . . . . . . . . . . . . . . . . . 22b . . . . . . . . . . . 200,000 . . . . . . . . . . . 22c Net Capital Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 22c . . . . . .0 . . . . . 200,000 . . . . . . . . . . . 23 Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . 23 . . . . . . . . . . . . 50,000 . . . . . . . . . 24 Retained earnings - appropriated . . . . . . . . . . . . . . . . . . . . .24 . . . . . . 0. . . . . . 45,000. . . . . . . . . 25 Retained earnings - unappropriated . . . . . . . . . . . . . . . . . . . .25 . . . . . . . . . . . 152,833. . . . . . . . . . 26 Adjustments to shareholders' equity . . . . . . . . . . . . . . . . . . . .26 . . . . . . 0. . . . . . . . 0. . . . . . . 27 Less cost of treasury stock . . . . . . . . . . . . . . . . . . . . . . . 27 . . . . . . . . . . . . . . . . . . . . . 28 Total liabilities and shareholders' equity . . . . . . . . . . . . . . . . . . 28 . . . . . . . . . . . . 787,436 . . . . . . 0 . . . End of year balance sheet out of balance by . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,315. . . . . . . . . White Pne 38-0281147 Line 2, Sch M-1 (1120) - Federal Income Tax per Books 1 Tax per books (Accrual basis) . . . . . . . . . . . . . . . . . . . . . . . 1 . . . . 40,313 . . . . . . . . . . . . . . . . . 2 Enter federal income tax per books. Enter on line 2, Schedule M-1 . . . . . . . . . . . . . . . . . . . . . 40,313 . . . . . 2 . . . Line 4a (4626) - Adjusted Current Earnings 1 2 a b c 3 a b c d e f 4 a b c d e f 5 a b c d e f 6 7 8 9 10 Pre-adjustment AMTI. Enter the amount from line 3 of Form 4626 . . . . . . . . . . . . . . . . . 1 . . . . 146,315 . . . . . . . . ACE depreciation adjustment: AMT depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . 2a ACE depreciation: (1) Post-1993 property . . . . . . . . . . . . . . . . .2b1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Post-1989, pre-1994 property . . . . . . . . . . . . . 2b2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Pre-1990 MACRS property . . . . . . . . . . . . . . 2b3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Pre-1990 original ACRS property . . . . . . . . . . . 2b4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) Property described in sections 168(f)(1) through (4) . . . . . . . . . . . . . . . . . . . . 2b5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) Other property . . . . . . . . . . . . . . . . . . . 2b6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) Total ACE depreciation. Add lines 2b(1) through 2b(6) . . . . . . . . . . . 2b7. . . . . . . . . . . . . . . . . . . . . 0 ACE depreciation adjustment. Subtract line 2b(7) from line 2a . . . . . . . . . . . . . . . . . . 2c . . . . . . 0 . . . . . . . Inclusion in ACE of items included in earnings and profits (E&P): Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 . . . . . . . . . . . . . 3a . . Death benefits from life insurance contracts . . . . . . . . . . . . . . . . . 3b . . . . . . . . . . . . . . . . . . . . . All other distributions from life insurance contracts (including surrenders) . . . . . . 3c . . . . . . . . . . . . . . . . . . . . . Inside buildup of undistributed income in life insurance contracts . . . . . . . . . 3d . . . . . . . . . . . . . . . . . . . . . Other items (see Regulations sections 1.56(g)-1(c)(6)(iii) through (ix) for a partial list) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3e Total increase to ACE from inclusion in ACE of items included in E&P. Add lines 3a through 3e . . . . . 3f . . . . . . . . . . . . . 1,500 Disallowance of items not deductible from E&P: Certain dividends received . . . . . . . . . . . . . . . . . . . . . . . . 4a . . . . . . . . . . . . . . . . . . . . . Dividends paid on certain preferred stock of public utilities that are deductible under section 247 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b. . . . . . . . . . . . . . . . . . . . . Dividends paid to an ESOP that are deductible under section 404(k) . . . . . . . .4c. . . . . . . . . . . . . . . . . . . . . Nonpatronage dividends that are paid and deductible under section 1382(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4d Other items (see Regulations sections 1.56(g)-1(d)(3)(i) and (ii) for a partial list) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4e Total increase to ACE because of disallowance of items not deductible from E&P. Add lines 4a through 4e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4f . . . . . . .0 . . . . . . Other adjustments based on rules for figuring E&P: Intangible drilling costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5a Circulation expenditures . . . . . . . . . . . . . . . . . . . . . . . . . 5b . . . . . . . . . . . . . . . . . . . . . Organizational expenditures . . . . . . . . . . . . . . . . . . . . . . . 5c . . . . . . . . . . . . . . . . . . . . . LIFO inventory adjustments . . . . . . . . . . . . . . . . . . . . . . . .5d. . . . . . . . . . . . . . . . . . . . . Installments sales . . . . . . . . . . . . . . . . . . . . . . . . . . . 5e . . . . . . . . . . . . . . . . . . . . . Total other E&P adjustments. Combine lines 5a through 5e . . . . . . . . . . . . . . . . . . . 5f . . . . . . 0 . . . . . . . Disallowance of loss on exchange of debt pools . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . Acquisition expenses of life insurance companies for qualified foreign contracts . . . . . . . . . . . .7 . . . . . . . . . . . . Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . Basis adjustments in determining gain or loss from sale or exchange of pre-1994 property . . . . . . . . . . . . . . . . . . . . 9 Adjusted current earnings. Combine lines 1, 2c, 3f, 4f, and 5f through 9. Enter the result here and on line 4a of Form 4626 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10. . . . 147,815