Required:

$$ Complete Alvin$$s Music Inc.$$s $($AMI$)2022$ Form $1120,$ Schedule D$,$ and Schedule G $($if applicable$)$ using the information provided below.

$$ Neither Form $4562$ for depreciation nor Form $4797$ for the sale of the equipment is required. Include the amount of tax depreciation and the tax gain on the equipment sale given in the problem $($or determined from information given in the problem$)$ on the appropriate lines on the first page of Form $1120.$

$$ Forms $1125-$A and $1125-$E are not required.

$$ If any information is missing, use reasonable assumptions to fill in the gaps.

$$ The forms, schedules, and instructions can be found at the IRS website $($www$.$irs.gov$).$ The instructions can be helpful in completing the forms.

Facts:

Alvin$$s Music Inc. $($AMI$)$ was formed in $2012$ by Alvin Jones and Theona Smith. Alvin and Theona officially incorporated their store on June $12,2013.$ AMI sells $($retail$)$ all kinds of music$-$related products including musical instruments, sheet music, CDs$,$ and DVDs$.$ Alvin owns $60$ percent of the outstanding common stock of AMI and Theona owns the remaining $40$ percent.

$$ AMI is located at $355$ Music Way, East Palo Alto, California $94303.$

$$ AMI$$s Employer Identification Number is $29-5748859.$

$$ AMI$$s business activity is retail sales of music$-$related products. Its business activity code is $451140.$

$$ Officers of the corporation are as follows:

o Alvin is the chief executive officer and president $($Social Security number $123-45-6789).$

o Theona is the executive vice president $($Social Security number $978-65-4321).$

o Gwen Givens is the vice president over operations

o Carlson Bannister is the secretary

$$ All officers devote $100$ percent of their time to the business and all officers are U$.$S$.$ citizens.

$$ Neither Gwen nor Carlson owns any stock in AMI.

$$ AMI uses the accrual method of accounting and has a calendar year$-$end.

$$ AMI made payments that require Form $1099$s$,$ and will file the Form $1099$s before the tax return is filed.

$$ AMI made four equal estimated tax payments of $$43,000$ each. Its tax liability last year was $$175,000.$ If it has overpaid its federal tax liability, AMI would like to receive a refund.

$$ AMI paid a dividend of $$80,000$ to its shareholders on December $1.$ AMI had sufficient earnings and profits $($E&P$)$ to cover the distribution.