Maple Corporation is a domestic, calendar-year, accrual- basis C corporation that operates home furnishing stores. It was incorporated and began business on January 1, 2015. Maples address is 13 Fulton St. Upper Marlboro, MD. Maples employer identification number is 12-3456789. The following individuals own Maples common stock (all of whom are Maple employees who devote 100% of their time to the business and are U.S. citizens):

Name Soc. Sec. No. % owned Other information

Joan Smith 123-45-6786 50% Maples president

Richard Smith 123-45-6787 32% Maples vice-president and

Joans son

Deborah Smith 123-45-6788 18% Maples treasurer and

Joans daughter

Maple paid $13,600 of dividends to its shareholders during the

year. Maple did not own more than 1% of any corporations stock, was not a partner in a partnership, did not have a beneficial interest in a trust, and had no foreign operations. Maple did not make any payments that would require it to file a Form 1099. An income statement and balance sheet are available on the following pages. Additional information follows. There are six pages altogether for the instructions to the project.

Required:

1. Prepare Maples federal income tax return.

2. Prepare a calculation of Maples current E&P.

Additional information and instructions for completing the project:

1. Round all dollar amounts on the tax return to the nearest dollar (amounts that are exactly 50 are rounded up to the next dollar). However, if you have to add two or more amounts to figure the total to enter on a line, include cents when adding the amount and round off only the total calculated.

2. For rules on depreciation, take into consideration the provisions for earnings and profit purposes (page 4 in Chapter 4) and for alternative minimum tax purposes (pages 5 through 8 in Chapter 5).

3. Assume the corporation is not allowed any Section 199 qualified production activities deduction.

4. Maple wants any overpayment of tax to be refunded to it (but do not complete Form 8050).

5. Forms, schedules, publications, and instructions (including Form 1120) are available at www.irs.gov. Use forms for tax year 2015.

6. With one exception, do not include any unnecessary forms or schedules (points will be deducted it they are included). The exception is Form 4626 (alternative minimum tax); complete it even though no alternative minimum tax is due (i.e., assume the corporation is not exempt from the alternative minimum tax).

7. Students do not need to complete Form 8941 (Credit for Small Employer Health Insurance Premiums).

8. When a tax return line item is calculated from several items (which are not on the tax return), include a supporting schedule showing how you calculated it. This allows me to give you partial credit more generously. These supporting schedules will not be considered to be unnecessary forms or schedules.

9. If you are working in a group of two or three students, turn in only one tax return for the group. You may work only with students of your own group; you are not allowed to work with members of other groups nor with persons outside of the class.

10. Use the corporate tax rate schedule to determine the tax on the corporations taxable income.

11. Assume the income tax expense reported on the income statement is correct (even though it is not). This means that you do not have to adjust the amounts on the Form 1120s Schedule L, Schedule M-1, and Schedule M-2 to reflect all the effects of using the GAAP-compliant income tax expense.

12. Place the forms and schedules in the following order:

1-IRS forms and schedules, in the order detailed on

pages 3 and 4 of the 2015 Form 1120 instructions.

2-Your calculation of the corporations current E&P.

3-Any of your own schedules showing how you calculated tax

return line items.