Melodic Musical Sales, Inc. is located at 5500 Fourth Avenue, City, ST 98765. The cor- poration uses the calendar year and accrual basis for both book and tax purposes. It is gaged in the sale of musical instruments with an employer identification number (EIN) of XX-2019017. The company incorporated on December 31, 2013, and began business on January 2, 2014. Table C:3-3 contains balance sheer information at January 1, 2017, and December 31, 2017. Table C:3-4 presents an unaudited GAAP income statement for 2017. These schedules are presented on a book basis. Other information follows the tables. Estimated Tax Payments (Form 2220): The corporation deposited estimated tax payments as follows: en- April 15, 2017 June 15, 2017 September 15, 2017 December 15, 2017 Total S100,000 200,000 235,000 235,000 $770,000 Taxable income in 2016 was $1.4 million, and the 2016 tax was $476,000. The corpora- tion earned its 2017 taxable income evenly throughout the year. Therefore, it does not use the annualization or seasonal methods. TABLE C:3-3 Melodic Musical Sales, Inc.-Book Balance Sheet Information January 1, 2017 Debit December 31, 2017 Debit Account Credit Credit Cash Accounts receivable Allowance for doubtful accounts Inventory Investment in corporate stock Investment in municipal bonds Cash surrender value of insurance policy Land Buildings Accumulated depreciation-Buildings Equipment Accumulated depreciation-Equipment $ 469,491 340,000 $ 953,648 425,000 $ 17,000 $21,250 2,125,000 262,000 30,000 60,000 300,000 1,000,000 2,975,000 50,000 30,000 80,000 300,000 1,000,000 50,000 70,000 600,000 900,000 150,000 165,000 100,000 100,000 Accumulated depreciation-Trucks Accounts payable Notes payable (short-term) Accrued payroll taxes Accrued state income taxes Accrued federal income taxes Bonds payable (long-term) Net deferred tax liability Capital stock-Common Retain earnings-Unappropriated 50,000 270,000 560,000 15,810 6,375 103,943 900,000 134,719 850,000 3,666,551 $5,286,491 $5,286,491 $6,813,648 $6,813,648 30,000 300,000 700,000 12,648 3,825 2,125 1,400,000 70,893 850,000 1,700,000 Melodic Musical Sales, Inc. is located at 5500 Fourth Avenue, City, ST 98765. The cor- poration uses the calendar year and accrual basis for both book and tax purposes. It is gaged in the sale of musical instruments with an employer identification number (EIN) of XX-2019017. The company incorporated on December 31, 2013, and began business on January 2, 2014. Table C:3-3 contains balance sheer information at January 1, 2017, and December 31, 2017. Table C:3-4 presents an unaudited GAAP income statement for 2017. These schedules are presented on a book basis. Other information follows the tables. Estimated Tax Payments (Form 2220): The corporation deposited estimated tax payments as follows: en- April 15, 2017 June 15, 2017 September 15, 2017 December 15, 2017 Total S100,000 200,000 235,000 235,000 $770,000 Taxable income in 2016 was $1.4 million, and the 2016 tax was $476,000. The corpora- tion earned its 2017 taxable income evenly throughout the year. Therefore, it does not use the annualization or seasonal methods. TABLE C:3-3 Melodic Musical Sales, Inc.-Book Balance Sheet Information January 1, 2017 Debit December 31, 2017 Debit Account Credit Credit Cash Accounts receivable Allowance for doubtful accounts Inventory Investment in corporate stock Investment in municipal bonds Cash surrender value of insurance policy Land Buildings Accumulated depreciation-Buildings Equipment Accumulated depreciation-Equipment $ 469,491 340,000 $ 953,648 425,000 $ 17,000 $21,250 2,125,000 262,000 30,000 60,000 300,000 1,000,000 2,975,000 50,000 30,000 80,000 300,000 1,000,000 50,000 70,000 600,000 900,000 150,000 165,000 100,000 100,000 Accumulated depreciation-Trucks Accounts payable Notes payable (short-term) Accrued payroll taxes Accrued state income taxes Accrued federal income taxes Bonds payable (long-term) Net deferred tax liability Capital stock-Common Retain earnings-Unappropriated 50,000 270,000 560,000 15,810 6,375 103,943 900,000 134,719 850,000 3,666,551 $5,286,491 $5,286,491 $6,813,648 $6,813,648 30,000 300,000 700,000 12,648 3,825 2,125 1,400,000 70,893 850,000 1,700,000