Offices located at 204 Ambulance Street, Anywhere, CA 92345

Corporate EIN: 57-1234567

Officers: Bruce Harrell (SSN 412-34-5670) 1018 Lexington Downs, Anywhere CA 92345

Della Smith (SSN 412-34-5671) 4564 Yates Road Anywhere, CA 92345

Bruce: Compensation $150,000, Dividend $40,000, 40% shareholder

Della: Compensation $225,000, Dividend $60,000 60% owner

Corporation formed 1/1/2009

MACRS depreciation for assests purchased before 2017: 22,000

The compnay does not want to take the 179 deduction

Included in the Non-officer salaries are wages of $20,000 paid to 2 different employees ($10,00 each) that were both certified by a designated local agency as being a member of one of the targeted groups and completed 500 hours of service to the employer each The company has an unused NOL carryover from 2014 of $20,000

HARRELL AND SMITH, INC.

Comparative Balance Sheet

As of December 31, 2014, and December 31, 2015

AssetsCash$ 39,955$ 45,459

Investments258,456169,125

Office equipment225,000310,759

Accumulated depreciation (equipment)(156,000)(165,379)

Building491,200491,200

Accumulated depreciation (building)(37,232)(49,826)

Total assets$821,379$801,338

Liabilities and equity

Notes payable$353,600$335,458

Common stock10,00010,000

Retained earnings457,779455,880

Total liabilities and equity$821,379$801,338

Harrell and Smith, Inc.

Income Statement

12/31/2017

Revenue Consulting Income 866,689

Long-term Capital Gains 4,231

Rental Income 9,000 Dividend Income (15% Ownership) 8,234

Long-term Capital Losses (8,200)

Total Revenue 879,954

Expenses Non-officer salaries 253,000

Officers Salaries 375,000

Depreciation 21,973

Interest Expense 20,127

Taxes and Licenses 24,051

Utilities 15,500

Travel 11,850

Meals and Entertainment 12,452

Auto 18,500

Insurance 7,000

Prepare form 1120