please complete the 2017 federal income tax return using the following information:

Instructions: Please complete the 2017 Federal income tax return for Fun Fair of Ventura, Inc. based upon the facts presented b elow. If required information is missing, use reasonable assumptions to fill in the gaps Fun Fair of Ventura, Inc. (FF) is organized as a corporation and is taxed as a "C" corporation with a calendar year-end. FF owns and operates an amusement park in Oxnard, California. Oxnard's weather allows FF to operate year-round. FF's address, employer identification number (EIN), and date of incorporation are as follows: Fun Fair of Ventura, Inc. 50 Boardwalk Oxnard, California 93030 EIN: 36-4385943 Date Incorporated: July 23, 2001 FF has been at the same address since inception FF has only common shares issued (no preferred stock). FF is owned by 86 shareholders. The majority owner of FF is a large private equity firm based in San Jose, California called Amusement Ventures, LLC (AV). AV's address, employer identification, and other information are as follows: Amusement Ventures, LLC 675 Shady Wood Boulevard San Jose, California 95101 EIN: 54-8293213 AV is taxed as a partnership for federal tax purposes. AV is organized in California. It owns 30% of the voting stock of FF directly. No other person or entity owns directly 20% or more, or owns, directly or indirectly, more than 50% of the voting stock of FF FF uses the accrual method of accounting. FF is not a subsidiary nor is it in an affiliated group with any other entity. FF is not audited by a CPA firm. It does, however, use GAAP-based financial statements. FF has never had a restatement of its income statement. FF reported the following information for 2017 FF did not pay dividends in excess of its current and accumulated earnings and profits None of the stock of FF is owned by non-U.S. persons FF has never issued publicly offered debt instruments. FF is not required to file a Form UTP FF made payments that required it to file federal Form(s) 1099. These Forms 1099 were filed timely by FF None of the shareholders of FF changed during the year FF has never disposed of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction . ot receive any assets in a Section 351 transfer dur FF did not rece Additional information d by a former 2017 FF was notified by its legal counsel that FF was being sue On August 1, her termination of employment from FF. On December 21, 2017, a menta reached with this terminated employee. As part of the settlement, FF agreed to pay se on its 2017 financial settlement amount of $190,000 on January 10, 2018. FF accrued this expen statements ns a portfolio of tax-exempt securities (none of which is a private activity bond) and publicly FF maintai traded stocks as a measure to provide immediate liquidity if needed (none of these investments is debt financed. All of these securities originate from less than 20% owned domestic corporations. From inception until this year the Rapid Coaster had been FF's main attraction. However due to safety, crowd appeal, and other factors, FF disposed of the Rapid Coaster on March 1, 2017 and purchased a new attraction known as the Vomitnator. The Rapid Coaster originally cost $2,000,000 and was placed in service on September 1, 2006. The Rapid Coaster was fully depreciated for book, regular tax, and AMT tax depreciation purposes. The Vomitnator was installed and rendered operational on March 1, 2017. The Vomitnator cost $6,000,000 to acquire, install, and make ready for service. FF's regular tax depreciation for the year is correctly calculated as $1,112,499 before considering the 2017 addition of the Vomitnator. FF's AMT depreciation for the year is correctly calculated as $744,977 before considering the 2017 addition of the Vomitnator. FF does not want to claim any current year bonus depreciation FF officer information for the year is as follows (compensation amounts included in total wages on the income statement for all employees): Name Social security Percent of time Percent of stock Amount of compensation owned devoted to business 100% 100% 100% 100% number Marissa Hunt Dakon Williams Deon Johnson Jennifer Conley 05% 03% 0% 0% $235,000 $195,000 $165,000 $150,000 435-54-2342 243-98-3242 194-23-7435 623-53-3920 ear the end of the year, FF switched its property and casualty insurance company. As a result, the plan e contract was altered. On December 31, 2017 FF prepaid insurance premium e coverage through February 15, 2018 as a condition of being accepted by the new ot expense any of the prepayment for financial accounting purposes s of FF rents from ven dors several pieces of equipment to use in its business. As of December 31, 2016 and December 31, 2017, respectively, FF had prepaid vendors for equipment rental of $30,000 for January 2016 and $35,000 for January 2018. On December 26, 2017 FF prepaid a contractor $17,500 to repair several pieces of maintenance shop equipment in January of 2018. FF fully expects that the contractor will have completed the project January 31, 2018. All the accrued wages and bonus amounts on the financial statements as of December 31, 2016 were paid on February 28, 2018 As of December 31, 2016 and 2017, respectively, FF had vacation accruals on its book s of $29,000 and $35,000. As of March 15, 2017 and 2018 , respectively, FF had paid $5,000 and $8,000 of those accrued amounts On December 2, 2017, the millionth customer entered the park. To recognize the accomplishment and to promote the amusement park through print and radio media advertisements, FF held a give-away contest wherein the lucky customer deemed to be the millionth customer would be given $100,000. The check was presented to the lucky winner on January 15, 2018. The land on which FF resides is owned by the county. FF has a very favorable lease with the county that allows FF the ability to sublease any portion of the ground to another tenant. The board of directors of FF made the decision in the fall of 2017 to seek out a tenant for unimproved land that would not be utilized in any potential expansion plans. FF identified the potential renter and entered into a contract with the renter on December 1, 2017. The rent period is to begin on January 1, 2018; however, as part of the contract, the renter was required to pay a full six-month rental amount ($50,000) to FF by December 31, 2017. FF received a check of $50,000 on December 27, 2017 from the renter. This rental payment is not refundable to the renter under any circumstances. FF maintains an inventory of several items that it uses in its amusement park. Inventory is valued at cost. FF has never has never changed it inventory method. FF uses specific identification for its inventory. FF has never written down any subnormal goods. The rules of Section 263A (Unicap) apply to FF. The Unicap calculated costs related to ending inventory at December 31, 2016 and 2017 respectively, were $15,000 and $19,000. On December 1, 2017, FF paid a $400,000 dividend to all common stockholders During the year, FF made Federal estimated income tax payments of $72,500 each on April 15, June 15 September 15 and December 15 of 2017 ($290,000 in total). If FF has overpaid its current year estimated taxes, it would like to apply the excess to its estimated tax payments for next year. FF is NOT a "large corporation." FF's 2016 tax liability was $200,000. FF made California state estimated income tax payments of $15,000 each on April 15, June 15 September 15 and December 15 of 2017 ($60,000 in total). FF does not have a minimum tax credit carryover from 2016 dlete Financial Statements (kept on a GAAP basis) FUN FAIR OF VENTURA, INC. Balance Sheet 12/31/16 12/31/17 165,000 128,000 (43,000) 422,000 150,000 200,000 24,000,000 (13,542,000) $ 119,000 75,000 (49,000) 390,000 150,000 200,000 28,000,000 Cash Accounts Receivable Less: Allowance for Bad Debts Inventory Tax-exempt Securities Publicly Traded Stocks Fixed Assets Less: Acc. Depreciation Prepaid Insurance Prepaid Rent Prepaid Installation Contract (12,892,000) 0 0,000 0 150,000 25,000 35,000 17,500 250,000 Total Assets: $11,660,000 $16,320,500 Liabilities and Shareholders' Equity: Accounts Payable Accrued Wages Accrued Bonuses Accrued Vacation Legal Settlement Accrual Prize Accrual Unearned Rental Income Note Payable-First Bank of CA (Credit Line) Note Payable-Equipment Leasing, Inc 48,000 123,000 68,500 29,000 62,000 118,000 39,000 35,000 190,000 100,000 50,000 1, 084,000 11,728,000 0 1,540,000 7,112,000 Capital Stock 100,000 2,000,000 814,500 100,000 2,000,000 639,500 Additional paid-in Capital Retained Earnings-Unappropriated $16,320,500 Total Liabilities and Shareholders' Equity: $11,660,000 Income Statement for the period ending December 31, 2017 Am Income: Gross Sales 26,523,275 (113,500 26,409,775 Less: Returns Net Sales Cost of Goods Sold (2,052,500) Dividend Income 4,300 2,650 2,300 Interest Income Municipal Bond Interest Income Total Income: 24,366,525 Expenses: Employee Salaries 13,905,600 492,350 58,000 1,543,000 1,112,400 10,750 277,000 781,000 1,350,000 33,950 53,750 31,000 2,500 5,000 290,500 143,250 8,500 13,550 215,000 190,000 100,000 158,675 Repairs and Maintenance Bad Debts Rent Payroll Taxes Licensing Fees Property Taxes Interest Expense Depreciation Office Supplies Employee Training Safety Expenses Political Contribution CA Safety Commission Fine Advertising Admission Supplies Meals and Entertainment Travel Insurance Legal Settlement Prize Contest Expense Fuel Utilities Telephone 2,530,500 135,250 $23,441,525 Total Expenses before taxes: 60,000 290,000 CA state income tax expense Federal tax expense $350,000 575,000 Total income taxes Net Income: Instructions: Please complete the 2017 Federal income tax return for Fun Fair of Ventura, Inc. based upon the facts presented b elow. If required information is missing, use reasonable assumptions to fill in the gaps Fun Fair of Ventura, Inc. (FF) is organized as a corporation and is taxed as a "C" corporation with a calendar year-end. FF owns and operates an amusement park in Oxnard, California. Oxnard's weather allows FF to operate year-round. FF's address, employer identification number (EIN), and date of incorporation are as follows: Fun Fair of Ventura, Inc. 50 Boardwalk Oxnard, California 93030 EIN: 36-4385943 Date Incorporated: July 23, 2001 FF has been at the same address since inception FF has only common shares issued (no preferred stock). FF is owned by 86 shareholders. The majority owner of FF is a large private equity firm based in San Jose, California called Amusement Ventures, LLC (AV). AV's address, employer identification, and other information are as follows: Amusement Ventures, LLC 675 Shady Wood Boulevard San Jose, California 95101 EIN: 54-8293213 AV is taxed as a partnership for federal tax purposes. AV is organized in California. It owns 30% of the voting stock of FF directly. No other person or entity owns directly 20% or more, or owns, directly or indirectly, more than 50% of the voting stock of FF FF uses the accrual method of accounting. FF is not a subsidiary nor is it in an affiliated group with any other entity. FF is not audited by a CPA firm. It does, however, use GAAP-based financial statements. FF has never had a restatement of its income statement. FF reported the following information for 2017 FF did not pay dividends in excess of its current and accumulated earnings and profits None of the stock of FF is owned by non-U.S. persons FF has never issued publicly offered debt instruments. FF is not required to file a Form UTP FF made payments that required it to file federal Form(s) 1099. These Forms 1099 were filed timely by FF None of the shareholders of FF changed during the year FF has never disposed of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction . ot receive any assets in a Section 351 transfer dur FF did not rece Additional information d by a former 2017 FF was notified by its legal counsel that FF was being sue On August 1, her termination of employment from FF. On December 21, 2017, a menta reached with this terminated employee. As part of the settlement, FF agreed to pay se on its 2017 financial settlement amount of $190,000 on January 10, 2018. FF accrued this expen statements ns a portfolio of tax-exempt securities (none of which is a private activity bond) and publicly FF maintai traded stocks as a measure to provide immediate liquidity if needed (none of these investments is debt financed. All of these securities originate from less than 20% owned domestic corporations. From inception until this year the Rapid Coaster had been FF's main attraction. However due to safety, crowd appeal, and other factors, FF disposed of the Rapid Coaster on March 1, 2017 and purchased a new attraction known as the Vomitnator. The Rapid Coaster originally cost $2,000,000 and was placed in service on September 1, 2006. The Rapid Coaster was fully depreciated for book, regular tax, and AMT tax depreciation purposes. The Vomitnator was installed and rendered operational on March 1, 2017. The Vomitnator cost $6,000,000 to acquire, install, and make ready for service. FF's regular tax depreciation for the year is correctly calculated as $1,112,499 before considering the 2017 addition of the Vomitnator. FF's AMT depreciation for the year is correctly calculated as $744,977 before considering the 2017 addition of the Vomitnator. FF does not want to claim any current year bonus depreciation FF officer information for the year is as follows (compensation amounts included in total wages on the income statement for all employees): Name Social security Percent of time Percent of stock Amount of compensation owned devoted to business 100% 100% 100% 100% number Marissa Hunt Dakon Williams Deon Johnson Jennifer Conley 05% 03% 0% 0% $235,000 $195,000 $165,000 $150,000 435-54-2342 243-98-3242 194-23-7435 623-53-3920 ear the end of the year, FF switched its property and casualty insurance company. As a result, the plan e contract was altered. On December 31, 2017 FF prepaid insurance premium e coverage through February 15, 2018 as a condition of being accepted by the new ot expense any of the prepayment for financial accounting purposes s of FF rents from ven dors several pieces of equipment to use in its business. As of December 31, 2016 and December 31, 2017, respectively, FF had prepaid vendors for equipment rental of $30,000 for January 2016 and $35,000 for January 2018. On December 26, 2017 FF prepaid a contractor $17,500 to repair several pieces of maintenance shop equipment in January of 2018. FF fully expects that the contractor will have completed the project January 31, 2018. All the accrued wages and bonus amounts on the financial statements as of December 31, 2016 were paid on February 28, 2018 As of December 31, 2016 and 2017, respectively, FF had vacation accruals on its book s of $29,000 and $35,000. As of March 15, 2017 and 2018 , respectively, FF had paid $5,000 and $8,000 of those accrued amounts On December 2, 2017, the millionth customer entered the park. To recognize the accomplishment and to promote the amusement park through print and radio media advertisements, FF held a give-away contest wherein the lucky customer deemed to be the millionth customer would be given $100,000. The check was presented to the lucky winner on January 15, 2018. The land on which FF resides is owned by the county. FF has a very favorable lease with the county that allows FF the ability to sublease any portion of the ground to another tenant. The board of directors of FF made the decision in the fall of 2017 to seek out a tenant for unimproved land that would not be utilized in any potential expansion plans. FF identified the potential renter and entered into a contract with the renter on December 1, 2017. The rent period is to begin on January 1, 2018; however, as part of the contract, the renter was required to pay a full six-month rental amount ($50,000) to FF by December 31, 2017. FF received a check of $50,000 on December 27, 2017 from the renter. This rental payment is not refundable to the renter under any circumstances. FF maintains an inventory of several items that it uses in its amusement park. Inventory is valued at cost. FF has never has never changed it inventory method. FF uses specific identification for its inventory. FF has never written down any subnormal goods. The rules of Section 263A (Unicap) apply to FF. The Unicap calculated costs related to ending inventory at December 31, 2016 and 2017 respectively, were $15,000 and $19,000. On December 1, 2017, FF paid a $400,000 dividend to all common stockholders During the year, FF made Federal estimated income tax payments of $72,500 each on April 15, June 15 September 15 and December 15 of 2017 ($290,000 in total). If FF has overpaid its current year estimated taxes, it would like to apply the excess to its estimated tax payments for next year. FF is NOT a "large corporation." FF's 2016 tax liability was $200,000. FF made California state estimated income tax payments of $15,000 each on April 15, June 15 September 15 and December 15 of 2017 ($60,000 in total). FF does not have a minimum tax credit carryover from 2016 dlete Financial Statements (kept on a GAAP basis) FUN FAIR OF VENTURA, INC. Balance Sheet 12/31/16 12/31/17 165,000 128,000 (43,000) 422,000 150,000 200,000 24,000,000 (13,542,000) $ 119,000 75,000 (49,000) 390,000 150,000 200,000 28,000,000 Cash Accounts Receivable Less: Allowance for Bad Debts Inventory Tax-exempt Securities Publicly Traded Stocks Fixed Assets Less: Acc. Depreciation Prepaid Insurance Prepaid Rent Prepaid Installation Contract (12,892,000) 0 0,000 0 150,000 25,000 35,000 17,500 250,000 Total Assets: $11,660,000 $16,320,500 Liabilities and Shareholders' Equity: Accounts Payable Accrued Wages Accrued Bonuses Accrued Vacation Legal Settlement Accrual Prize Accrual Unearned Rental Income Note Payable-First Bank of CA (Credit Line) Note Payable-Equipment Leasing, Inc 48,000 123,000 68,500 29,000 62,000 118,000 39,000 35,000 190,000 100,000 50,000 1, 084,000 11,728,000 0 1,540,000 7,112,000 Capital Stock 100,000 2,000,000 814,500 100,000 2,000,000 639,500 Additional paid-in Capital Retained Earnings-Unappropriated $16,320,500 Total Liabilities and Shareholders' Equity: $11,660,000 Income Statement for the period ending December 31, 2017 Am Income: Gross Sales 26,523,275 (113,500 26,409,775 Less: Returns Net Sales Cost of Goods Sold (2,052,500) Dividend Income 4,300 2,650 2,300 Interest Income Municipal Bond Interest Income Total Income: 24,366,525 Expenses: Employee Salaries 13,905,600 492,350 58,000 1,543,000 1,112,400 10,750 277,000 781,000 1,350,000 33,950 53,750 31,000 2,500 5,000 290,500 143,250 8,500 13,550 215,000 190,000 100,000 158,675 Repairs and Maintenance Bad Debts Rent Payroll Taxes Licensing Fees Property Taxes Interest Expense Depreciation Office Supplies Employee Training Safety Expenses Political Contribution CA Safety Commission Fine Advertising Admission Supplies Meals and Entertainment Travel Insurance Legal Settlement Prize Contest Expense Fuel Utilities Telephone 2,530,500 135,250 $23,441,525 Total Expenses before taxes: 60,000 290,000 CA state income tax expense Federal tax expense $350,000 575,000 Total income taxes Net Income