Problem 3: Using the excel file provided which is data from the IRS related to Schedule M-3 from the year 2007 and research skills, answer the following data analytical and research questions: Required: 1. Which industry had the fewest returns filed? 2. Which industry had the most returns filed? 3. What industries, if any, appear to be operating at a loss? 4. What is a section 78 gross up? Provide the source to where you found your answer. 5. Are there any industries that do not engage in hedging transactions? If so which industries do not engage in hedging transactions? 6. What is a section 162(m) limitation? Provide the source to where you found your answer. E G H J K M N o R S T U A B D 1 Table 2. Corporations Filing Schedule M-3 as part of a Corporate Tax Return [1] 2 Selected Items, by Industrial Sector, Tax Year 2007 3 (All figures are estimates based on samples-money amounts and size of total assets are in thousands of dollars.) NAICS Industrial Sector 51 5 11 21 22 23 31 42 44 48 52 53 61 62 71 72 81 Line Item Agriculture, Forestry, Fishing and Hunting (2) 5091 Other 54 55 56 Administrative and Support and Waste Professional, Management Scientific, and Management of and Technical Companies (Holding Remediation Services Companies) Services (14) (15) 3,8351 4,651 830 Total Manufacturing Accomodation and Food Services Wholesale Trade Information Transportation and Warehousing (10) 1,237 Mining (3) 1,087 Utilities (4) Construction (5) 2,643 Real Estate and Rental and Leasing (13) 3,406 Retail Trade (8) 3,122 Finance and Insurance (12) 5,227 Health Care and Social Assistance (18) 830 (1) Arts, Entertainment, and Recreation (19) 481 Educational Services (17) 1631 (11) (16) (20) Services (21) 515 49,179 432 10,408 6,672 2,318 815 21,355,709 17,724,129 2,495,415 710,900 490,374 12,631 689,848 382,006 244,464 11,037 1,415,691 202,603 47,933 57,319 87,0751 0 6 7 8 Number of Retums 9 Part 1 10 4 Worldwide consolidated net income (loss) 11 5a Net income nonincludible foreign entities 12 5b Net loss nonincludible foreign entities 13 6a Net income nonincludible US entities 14 6b Net loss nonincludible US entities 15 7a Net income (ss) other disrgd entities 16 7b Net income (ss) other includible entities 17 8 Adjustment to elim bet incl and nonincl 18 9 Adjustment to reconcile income statement 19 10a Intercompany div adjustments reconcile in 11 20 10b Othr statutory acctng adjsmnts reconcile 21 10c Other adjustments to reconcile line 11 22 11 Net income (loss) per income statement 23 Part II 826,114 218,147 59,735 224,145 * 25,961 0 -202,037 68,309 19,844 -3,100 804,702,184 759,014,717 247,137,958 160,802,001 40,916,070 3,977,319 7,363,469 335,275,148 4,831,165 46,299,270 13,207,778 38,887,991 623,344,020 0 0 58,230,931 22,642,043 6,016,543 8,239,376 2,257,878 0 130,087 20,607,501 156,657 -60,963 -198 -398,036 56,233,820 44,068,584 5,334,189 1,957,646 4,965,199 1,800,979 -51,666 571,104 3,835,083 119,513 61,117 25,206 -715,259 41,380,807 -9,271,637 1,280,207 1,047,833 625,935 303,304 7,043 -14,957 255,469 -14,626 1,428 -24, 118 116,924 -9,597,634 390,110,633 558,574,663 169,394,316 52,974,673 10,293,775 4,133,055 6,780,934 245,122,054 4,389,759 34,570,429 7,578,911 36,981,382 297,734,571 59,964,071 19,911,463 3,482,011 1,461,145 518,902 -89,230 258,658 7,685,013 46,585 870,476 * -1,521,257 167,236 50,076,093 58,622,552 10,885,075 3,142,551 6,648,788 1,327,687 27 -10,312 3,406,983 311,964 1,387,713 136,127 158,285 50,957,379 54,382,472 37,020,679 16,278,848 11,697,491 4,454,731 -10,565 62,137 -13,194,639 405,182 1,014,273 -10,025 4,260,286 18,883,499 -18,821 614,930 -19,110 111,529 8,418 -710,399 15,459,529 50,275,384 31,078,751 24,429,187 11,616,493 -68,170 215,368 -10,602,365 -813,102 4,924,933 7,106,702 -2,497,112 -12,213,738 5,467,951 4,732,197 1,924,996 3,366,769 3,056,481 -3,050 130,040 1,493,887 45,512 -2.331 0 -121,909 3,880,208 -1,724,162 7,660,411 3,309,131 1,072,426 618,736 40,300 8,619 459,921 447,354 23,325 -19,862 262,223 -6,248,745 -1,363,531 226,765 129,599 177,430 131,049 0 -656 -10,795 * 20,066 85,496,591 30,481,432 5,909,499 38,625,817 2,991,726 -2,006 -372,390 74,886,684 594,575 2,681,193 -159,286 353,298 103,489,486 6,979,055 1,965,404 490,477 1,619,326 178,642 -385 36,096 227,203 5,858 73,164 -7,994 657,384 5,041,829 2,382,458 692,427 224,149 2,168,502 626,611 3,779 76,567 14,938 -7,287 123,014 -369 354,456 903,420 0 57,665 -775 0 9,344,726 4,034,206 1,688,575 1,947,061 613,408 98,797 -286,095 338,461 106,919 600,869 95,525 -9,857 6,644,202 0 -872 8,847 2,009 -77,801 0 2,372 1,225,332 0 0 0 13,084 365,618 -84 597,115 13,715 -1,468,770
