TAX FORM 1120

Candace Zachary is a small business owner who owns 100 percent of a corporation, Doc AlmightyA Professional Corporation, that operates a cash basis, calendar year, medical practice. The company's gross receipts from services for 2019 were $1,420,000. The corporation also earned interest of $23 and dividends from a publicly traded corporation of $123. Business expenses were as follows: Dr. Zachary's salary $ 649,500 Salaries and wages (not for officers) 362,500 Employee benefits 77,073 Retirement contributions 110,200 Rent on premises 88,000 Office expenses including supplies, utilities, and custodial 46.890 Federal corporate income tax for 2018 -- Not deductible on Form 1120 5,500 DepreciationPer Books (Tax depreciation = $64,200) 42,500 Distributions for the year 22,500 The balance sheet of the corporation per books (for Schedule K) follows: Cash $260,000 $317,983 Equipment 200,000 200,000 Investments 40,000 40.000 Accumulated depreciation - 77,500 - 120,000 Capital stock $100,000 $100,000 Retained earnings 322,500 337,837 # The taxable income of a professional service corporation is taxed at a flat rate of 21% + Any additional information such as Social Security numbers, Employer ID numbers, etc. is not needed. Fom 1120 2019 18 Deductions (See instructions for limitations on deductions.) U.S. Corporation Income Tax Return OMB No. 1545-0123 For calendar year 2019 or tax year beginning 2019, ending 20 Department of the Treasury Internal Revenue Service Go to www.irs.gov/Form1120 for instructions and the latest information. A Check if: Name B Employer identification number 1a Consolidated return (attach Form 851) TYPE b Lifeonlife consoli- Number, street, and room or suite no. If a P.O. box, see instructions. C Date incorporated dated return OR 2 Personal holding co. PRINT (attach Sch.PH City or town, state or province, country, and ZIP or foreign postal code D Total assets (see instructions) 3 Personal service corp. (see Instructions) 4 Schedule M-3 attached OE Check if: (1) Initial return E (2) Final return (3) Name change (4) Address change 1a Gross receipts or sales. 1a b Returns and allowances. 1b c Balance. Subtract line 1b from line 1a 1c 2 Cost of goods sold (attach Form 1125-A). 2 3 Gross profit. Subtract line 2 from line 10 3 3 4 Dividends and inclusions (Schedule C, line 23) 4 5 Interest 5 6 Gross rents 6 7 Gross royalties 7 8 Capital gain net income (attach Schedule D (Form 1120)) 8 9 9 Net gain or loss) from Form 4797, Part II, line 17 (attach Form 4797) 10 Other income (see instructions-attach statement) 10 11 Total income. Add lines 3 through 10 11 12 Compensation of officers (see instructions-attach Form 1125-E) 12 13 Salaries and wages (less employment credits) 13 14 Repairs and maintenance 14 15 Bad debts 15 16 Rents. 16 17 Taxes and licenses 17 Interest (see instructions) 18 19 Charitable contributions 19 20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on retum (attach Form 4562) 20 $ 21 Depletion 21 22 Advertising 22 23 Pension, profit-sharing, etc., plans 23 24 Employee benefit programs 24 25 Reserved for future use. 25 26 Other deductions (attach statement) 26 27 Total deductions. Add lines 12 through 26 27 28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 28 29a Net operating loss deduction (see instructions) 29a b Special deductions (Schedule C, line 24). 29b Add lines 29a and 29b 29c 30 Taxable income. Subtract line 29c from line 28. See instructions 30 31 Total tax (Schedule J, Part I, line 11) 31 32 2019 net 965 tax liability paid (Schedule J, Part II, line 12) 32 33 Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23) 33 Estimated tax penalty. See instructions. Check if Form 2220 is attached 34 35 Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed 35 36 Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid 36 37 Enter amount from line 36 you want: Credited to 2020 estimated tax Refunded! 37 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, Sign and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge May the IRS discuss this return Here with the preparer shown below? See instructions. Yes No Signature of officer Date Title Print/Type preparer's name Preparer's signature Date PTIN Paid Check it self-employed Preparer Use Only Firm's name Firm's EIN Firm's address Phone no For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 114500 Form 1120 (2019) :::::: 34 (a) Dividends and inclusions Page 2 (c) Special deductions (a) (b) (b) % Form 1120 (2019) Schedule C Dividends, Inclusions, and Special Deductions (see instructions) 1 Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock) 2 Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock). 50 65 see Instructions 3 Dividends on certain debt-financed stock of domestic and foreign corporations 4 Dividends on certain preferred stock of less-than-20%-owned public utilities 23.3 5 Dividends on certain preferred stock of 20%-or-more-owned public utilities 26.7 6 Dividends from less-than-20%-owned foreign corporations and certain FSCs 50 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs 65 8 Dividends from wholly owned foreign subsidiaries 100 9 Instructions 10 Subtotal. Add lines 1 through 8. See instructions for limitations Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 100 11 Dividends from affiliated group members 100 12 100 13 Dividends from certain FSCS Foreign-source portion of dividends received from a specified 10%-owned foreign corporation (excluding hybrid dividends) (see instructions) Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13 (including any hybrid dividends) 100 14 Instructions 100 15 Section 965(a) inclusion 16a Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471) (see instructions) b Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions) c Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17 (attach Form(s) 5471) (see instructions) .. 17 Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992) 18 Gross-up for foreign taxes deemed paid. 19 IC-DISC and former DISC dividends not included on line 1, 2, or 3 20 Other dividends 21 Deduction for dividends paid on certain preferred stock of public utilities 22 23 Section 250 deduction (attach Form 8993) Total dividends and inclusions. Add column (a), lines 9 through 20. Enter here and on page 1, line 4 Total special deductions. Add column (c), lines 9 through 22. Enter here and on page 1, line 295 24 Form 1120 (2019) Page 3 2 3 4 5a e 6 6 7 8 9c e Form 1120 (2019) Schedule J Tax Computation and Payment (see instructions) Part I-Tax Computation 1 Check if the corporation is a member of a controlled group (attach Schedule 0 (Form 1120)). See instructions 2 Income tax. See instructions 3 Base erosion minimum tax amount (attach Form 8991) 4 Add lines 2 and 3. 5a Foreign tax credit (attach Form 1118) b Credit from Form 8834 (see instructions) 5b General business credit (attach Form 3800) 50 d Credit for prior year minimum tax (attach Form 8827) 5d Bond credits from Form 8912 5e Total credits. Add lines 5a through 5e 7 Subtract line 6 from line 4 8 Personal holding company tax (attach Schedule PH (Form 1120)) 9a Recapture of investment credit (attach Form 4255) 9 b Recapture of low-income housing credit (attach Form 8611) 9b Interest due under the look back method - completed long-term contracts (attach Form 8697) d Interest due under the look back method-income forecast method (attach Form 8866) 9d Alternative tax on qualifying shipping activities (attach Form 8902) 9e f Other (see instructions-attach statement) 9f 10 Total. Add lines 9a through 9f 11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 Part II-Section 965 Payments (see instructions) 12 2019 net 965 tax liability paid from Form 965-B, Part II, column (k), line 3. Enter here and on page 1, line 32 Part III-Payments, Refundable Credits, and Section 965 Net Tax Liability 13 2018 overpayment credited to 2019 14 2019 estimated tax payments 15 2019 refund applied for on Form 4466 16 Combine lines 13, 14, and 15 17 Tax deposited with Form 7004 18 Withholding (see instructions) 19 Total payments. Add lines 16, 17, and 18 20 Refundable credits from: Form 2439 20a Form 4136 20b Form 8827, line 5c 20c d Other (attach statement-see instructions) 20d 21 Total credits. Add lines 20a through 20d. 22 2019 net 965 tax liability from Form 965-B, Part I, column (d), line 3. See instructions 23 Total payments, credits, and section 965 net tax liability. Add lines 19, 21, and 22. Enter here and on page 1, line 33 10 11 12 13 14 15 16 17 18 19 b 21 22 23 Form 1120 (2019) Page 4 Yes No Form 1120 (2019) Schedule K Other Information (see instructions) 1 Check accounting method: a Cash b Accrual Other (specify) 2 See the instructions and enter the Business activity code no. b Business activity c Product or service 3 Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? If "Yes," enter name and EIN of the parent corporation 4 a At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part 1 of Schedule G (Form 1120) (attach Schedule G)..... b Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) 5 At the end of the tax year, did the corporation: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions. If "Yes," complete through (iv) below. (11) Employer Name of Corporation (iv) Percentage Identification Number (in) Country of Owned in Voting of any ) Incorporation Stock b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) below. (1) Employer (iii) Country of iv) Maximum Name of Entity Identification Number Percentage Owned in ) Organization Profit, Loss, or Capital 6 7 During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in excess of the corporation's current and accumulated earnings and profits? See sections 301 and 316 If "Yes," file Form 5452, Corporate Report of Nondividend Distributions. See the instructions for Form 5452. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary. At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of the total voting power of all classes of the corporation's stock entitled to vote or at least 25% of the total value of all classes of the corporation's stock? For rules of attribution, see section 318. If "Yes,"enter: (a) Percentage owned and (b) Owner's country (c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached Check this box if the corporation issued publicly offered debt instruments with original issue discount If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. Enter the amount of tax-exempt interest received or accrued during the tax year $ Enter the number of shareholders at the end of the tax year (if 100 or fewer) If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions) If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or the election will not be valid. Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported on page 1, line 29a.). $ Form 1120 2019) 8 9 10 11 12 Page 5 Yes No b Form 1120 (2019) Schedule K Other Information (continued from page 4) 13 Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the tax year less than $250,000? If "Yes," the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions and the book value of property distributions (other than cash) made during the tax year $ 14 Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement? See instructions If "Yes," complete and attach Schedule UTP. 15a Did the corporation make any payments in 2019 that would require it to file Form(s) 1099? If "Yes," did or will the corporation file required Form(s) 1099? . 16 During this tax year, did the corporation have an 80%-or-more change in ownership, including a change due to redemption of its own stock? 17 During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction? 18 Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair market value of more than $1 million? . 19 During the corporation's tax year, did the corporation make any payments that would require it to file Forms 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474) of the Code? . 20 Is the corporation operating on a cooperative basis?. 21 During the tax year, did the corporation pay or accrue any interest or royalty for which the deduction is not allowed under section 267A? See instructions If "Yes," enter the total amount of the disallowed deductions $ 22 Does the corporation have gross receipts of at least $500 million in any of the 3 preceding tax years? (See sections 59A(e)(2) and (3)) . a If "Yes," complete and attach Form 8991. 23 Did the corporation have an election under section 163() for any real property trade or business or any farming business in effect during the tax year? See instructions 24 Does the corporation satisfy one or more of the following? See instructions The corporation owns a pass-through entity with current, or prior year carryover, excess business interest expense. b The corporation's aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $26 million and the corporation has business interest expense. The corporation is a tax shelter and the corporation has business interest expense. If "Yes," to any, complete and attach Form 8990. 25 Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund?. If "Yes," enter amount from Form 8996, line 14 $ Form 1120 (2019) 1 1 Form 1120 (2019) Page 6 Schedule L Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) ( (c) (d) Cash 2a Trade notes and accounts receivable b Less allowance for bad debts 3 Inventories. 4 U.S. government obligations 5 Tax-exempt securities (see instructions) 6 Other current assets (attach statement) 7 Loans to shareholders 8 Mortgage and real estate loans 9 Other investments (attach statement) 10a Buildings and other depreciable assets b Less accumulated depreciation. 11a Depletable assets b Less accumulated depletion 12 Land (net of any amortization) 13a Intangible assets (amortizable only) b Less accumulated amortization. 14 Other assets (attach statement) 15 Total assets Liabilities and Shareholders' Equity 16 Accounts payable.. 17 Mortgages, notes, bonds payable in less than 1 year 18 Other current liabilities (attach statement). . ) 19 Loans from shareholders 20 Mortgages, notes, bonds payable in 1 year or more 21 Other liabilities (attach statement), 22 Capital stock: a Preferred stock b Common stock 23 Additional paid-in capital 24 Retained earnings-Appropriated (attach statement) 25 Retained earnings-Unappropriated. 26 Adjustments to shareholders' equity (attach statement) 27 Less cost of treasury stock 28 Total liabilities and shareholders' equity Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. 1 Net income (loss) per books. 7 Income recorded on books this year 2 Federal income tax per books not included on this retum (itemize): 3 Excess of capital losses over capital gains Tax-exempt interest $ - Income subject to tax not recorded on books this year (itemize): 8 Deductions on this retum not charged 5 Expenses recorded on books this year not against book income this year (itemize): deducted on this return (itemize): a Depreciation $ a Depreciation b Charitable contributions $ b Charitable contributions. $ c Travel and entertainment $ 9 Add lines 7 and 8 Add lines 1 through 5. Income (page 1, line 28) - line 6 less line 9 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 1 Balance at beginning of year 5 Distributions: a Cash. 2 Net income (loss) per books. b Stock 3 Other increases (itemize): c Property 6 Other decreases (itemize): 7 Add lines 5 and 6 5 Add lines 1, 2, and 3 8 Balance at end of year (line 4 less line 7) Form 1120 (2019) 4 $ 6 10 4 Candace Zachary is a small business owner who owns 100 percent of a corporation, Doc AlmightyA Professional Corporation, that operates a cash basis, calendar year, medical practice. The company's gross receipts from services for 2019 were $1,420,000. The corporation also earned interest of $23 and dividends from a publicly traded corporation of $123. Business expenses were as follows: Dr. Zachary's salary $ 649,500 Salaries and wages (not for officers) 362,500 Employee benefits 77,073 Retirement contributions 110,200 Rent on premises 88,000 Office expenses including supplies, utilities, and custodial 46.890 Federal corporate income tax for 2018 -- Not deductible on Form 1120 5,500 DepreciationPer Books (Tax depreciation = $64,200) 42,500 Distributions for the year 22,500 The balance sheet of the corporation per books (for Schedule K) follows: Cash $260,000 $317,983 Equipment 200,000 200,000 Investments 40,000 40.000 Accumulated depreciation - 77,500 - 120,000 Capital stock $100,000 $100,000 Retained earnings 322,500 337,837 # The taxable income of a professional service corporation is taxed at a flat rate of 21% + Any additional information such as Social Security numbers, Employer ID numbers, etc. is not needed. Fom 1120 2019 18 Deductions (See instructions for limitations on deductions.) U.S. Corporation Income Tax Return OMB No. 1545-0123 For calendar year 2019 or tax year beginning 2019, ending 20 Department of the Treasury Internal Revenue Service Go to www.irs.gov/Form1120 for instructions and the latest information. A Check if: Name B Employer identification number 1a Consolidated return (attach Form 851) TYPE b Lifeonlife consoli- Number, street, and room or suite no. If a P.O. box, see instructions. C Date incorporated dated return OR 2 Personal holding co. PRINT (attach Sch.PH City or town, state or province, country, and ZIP or foreign postal code D Total assets (see instructions) 3 Personal service corp. (see Instructions) 4 Schedule M-3 attached OE Check if: (1) Initial return E (2) Final return (3) Name change (4) Address change 1a Gross receipts or sales. 1a b Returns and allowances. 1b c Balance. Subtract line 1b from line 1a 1c 2 Cost of goods sold (attach Form 1125-A). 2 3 Gross profit. Subtract line 2 from line 10 3 3 4 Dividends and inclusions (Schedule C, line 23) 4 5 Interest 5 6 Gross rents 6 7 Gross royalties 7 8 Capital gain net income (attach Schedule D (Form 1120)) 8 9 9 Net gain or loss) from Form 4797, Part II, line 17 (attach Form 4797) 10 Other income (see instructions-attach statement) 10 11 Total income. Add lines 3 through 10 11 12 Compensation of officers (see instructions-attach Form 1125-E) 12 13 Salaries and wages (less employment credits) 13 14 Repairs and maintenance 14 15 Bad debts 15 16 Rents. 16 17 Taxes and licenses 17 Interest (see instructions) 18 19 Charitable contributions 19 20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on retum (attach Form 4562) 20 $ 21 Depletion 21 22 Advertising 22 23 Pension, profit-sharing, etc., plans 23 24 Employee benefit programs 24 25 Reserved for future use. 25 26 Other deductions (attach statement) 26 27 Total deductions. Add lines 12 through 26 27 28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 28 29a Net operating loss deduction (see instructions) 29a b Special deductions (Schedule C, line 24). 29b Add lines 29a and 29b 29c 30 Taxable income. Subtract line 29c from line 28. See instructions 30 31 Total tax (Schedule J, Part I, line 11) 31 32 2019 net 965 tax liability paid (Schedule J, Part II, line 12) 32 33 Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23) 33 Estimated tax penalty. See instructions. Check if Form 2220 is attached 34 35 Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed 35 36 Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid 36 37 Enter amount from line 36 you want: Credited to 2020 estimated tax Refunded! 37 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, Sign and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge May the IRS discuss this return Here with the preparer shown below? See instructions. Yes No Signature of officer Date Title Print/Type preparer's name Preparer's signature Date PTIN Paid Check it self-employed Preparer Use Only Firm's name Firm's EIN Firm's address Phone no For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 114500 Form 1120 (2019) :::::: 34 (a) Dividends and inclusions Page 2 (c) Special deductions (a) (b) (b) % Form 1120 (2019) Schedule C Dividends, Inclusions, and Special Deductions (see instructions) 1 Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock) 2 Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock). 50 65 see Instructions 3 Dividends on certain debt-financed stock of domestic and foreign corporations 4 Dividends on certain preferred stock of less-than-20%-owned public utilities 23.3 5 Dividends on certain preferred stock of 20%-or-more-owned public utilities 26.7 6 Dividends from less-than-20%-owned foreign corporations and certain FSCs 50 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs 65 8 Dividends from wholly owned foreign subsidiaries 100 9 Instructions 10 Subtotal. Add lines 1 through 8. See instructions for limitations Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 100 11 Dividends from affiliated group members 100 12 100 13 Dividends from certain FSCS Foreign-source portion of dividends received from a specified 10%-owned foreign corporation (excluding hybrid dividends) (see instructions) Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13 (including any hybrid dividends) 100 14 Instructions 100 15 Section 965(a) inclusion 16a Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471) (see instructions) b Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions) c Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17 (attach Form(s) 5471) (see instructions) .. 17 Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992) 18 Gross-up for foreign taxes deemed paid. 19 IC-DISC and former DISC dividends not included on line 1, 2, or 3 20 Other dividends 21 Deduction for dividends paid on certain preferred stock of public utilities 22 23 Section 250 deduction (attach Form 8993) Total dividends and inclusions. Add column (a), lines 9 through 20. Enter here and on page 1, line 4 Total special deductions. Add column (c), lines 9 through 22. Enter here and on page 1, line 295 24 Form 1120 (2019) Page 3 2 3 4 5a e 6 6 7 8 9c e Form 1120 (2019) Schedule J Tax Computation and Payment (see instructions) Part I-Tax Computation 1 Check if the corporation is a member of a controlled group (attach Schedule 0 (Form 1120)). See instructions 2 Income tax. See instructions 3 Base erosion minimum tax amount (attach Form 8991) 4 Add lines 2 and 3. 5a Foreign tax credit (attach Form 1118) b Credit from Form 8834 (see instructions) 5b General business credit (attach Form 3800) 50 d Credit for prior year minimum tax (attach Form 8827) 5d Bond credits from Form 8912 5e Total credits. Add lines 5a through 5e 7 Subtract line 6 from line 4 8 Personal holding company tax (attach Schedule PH (Form 1120)) 9a Recapture of investment credit (attach Form 4255) 9 b Recapture of low-income housing credit (attach Form 8611) 9b Interest due under the look back method - completed long-term contracts (attach Form 8697) d Interest due under the look back method-income forecast method (attach Form 8866) 9d Alternative tax on qualifying shipping activities (attach Form 8902) 9e f Other (see instructions-attach statement) 9f 10 Total. Add lines 9a through 9f 11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 Part II-Section 965 Payments (see instructions) 12 2019 net 965 tax liability paid from Form 965-B, Part II, column (k), line 3. Enter here and on page 1, line 32 Part III-Payments, Refundable Credits, and Section 965 Net Tax Liability 13 2018 overpayment credited to 2019 14 2019 estimated tax payments 15 2019 refund applied for on Form 4466 16 Combine lines 13, 14, and 15 17 Tax deposited with Form 7004 18 Withholding (see instructions) 19 Total payments. Add lines 16, 17, and 18 20 Refundable credits from: Form 2439 20a Form 4136 20b Form 8827, line 5c 20c d Other (attach statement-see instructions) 20d 21 Total credits. Add lines 20a through 20d. 22 2019 net 965 tax liability from Form 965-B, Part I, column (d), line 3. See instructions 23 Total payments, credits, and section 965 net tax liability. Add lines 19, 21, and 22. Enter here and on page 1, line 33 10 11 12 13 14 15 16 17 18 19 b 21 22 23 Form 1120 (2019) Page 4 Yes No Form 1120 (2019) Schedule K Other Information (see instructions) 1 Check accounting method: a Cash b Accrual Other (specify) 2 See the instructions and enter the Business activity code no. b Business activity c Product or service 3 Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? If "Yes," enter name and EIN of the parent corporation 4 a At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part 1 of Schedule G (Form 1120) (attach Schedule G)..... b Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) 5 At the end of the tax year, did the corporation: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions. If "Yes," complete through (iv) below. (11) Employer Name of Corporation (iv) Percentage Identification Number (in) Country of Owned in Voting of any ) Incorporation Stock b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) below. (1) Employer (iii) Country of iv) Maximum Name of Entity Identification Number Percentage Owned in ) Organization Profit, Loss, or Capital 6 7 During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in excess of the corporation's current and accumulated earnings and profits? See sections 301 and 316 If "Yes," file Form 5452, Corporate Report of Nondividend Distributions. See the instructions for Form 5452. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary. At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of the total voting power of all classes of the corporation's stock entitled to vote or at least 25% of the total value of all classes of the corporation's stock? For rules of attribution, see section 318. If "Yes,"enter: (a) Percentage owned and (b) Owner's country (c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached Check this box if the corporation issued publicly offered debt instruments with original issue discount If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. Enter the amount of tax-exempt interest received or accrued during the tax year $ Enter the number of shareholders at the end of the tax year (if 100 or fewer) If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions) If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or the election will not be valid. Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported on page 1, line 29a.). $ Form 1120 2019) 8 9 10 11 12 Page 5 Yes No b Form 1120 (2019) Schedule K Other Information (continued from page 4) 13 Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the tax year less than $250,000? If "Yes," the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions and the book value of property distributions (other than cash) made during the tax year $ 14 Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement? See instructions If "Yes," complete and attach Schedule UTP. 15a Did the corporation make any payments in 2019 that would require it to file Form(s) 1099? If "Yes," did or will the corporation file required Form(s) 1099? . 16 During this tax year, did the corporation have an 80%-or-more change in ownership, including a change due to redemption of its own stock? 17 During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction? 18 Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair market value of more than $1 million? . 19 During the corporation's tax year, did the corporation make any payments that would require it to file Forms 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474) of the Code? . 20 Is the corporation operating on a cooperative basis?. 21 During the tax year, did the corporation pay or accrue any interest or royalty for which the deduction is not allowed under section 267A? See instructions If "Yes," enter the total amount of the disallowed deductions $ 22 Does the corporation have gross receipts of at least $500 million in any of the 3 preceding tax years? (See sections 59A(e)(2) and (3)) . a If "Yes," complete and attach Form 8991. 23 Did the corporation have an election under section 163() for any real property trade or business or any farming business in effect during the tax year? See instructions 24 Does the corporation satisfy one or more of the following? See instructions The corporation owns a pass-through entity with current, or prior year carryover, excess business interest expense. b The corporation's aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $26 million and the corporation has business interest expense. The corporation is a tax shelter and the corporation has business interest expense. If "Yes," to any, complete and attach Form 8990. 25 Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund?. If "Yes," enter amount from Form 8996, line 14 $ Form 1120 (2019) 1 1 Form 1120 (2019) Page 6 Schedule L Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) ( (c) (d) Cash 2a Trade notes and accounts receivable b Less allowance for bad debts 3 Inventories. 4 U.S. government obligations 5 Tax-exempt securities (see instructions) 6 Other current assets (attach statement) 7 Loans to shareholders 8 Mortgage and real estate loans 9 Other investments (attach statement) 10a Buildings and other depreciable assets b Less accumulated depreciation. 11a Depletable assets b Less accumulated depletion 12 Land (net of any amortization) 13a Intangible assets (amortizable only) b Less accumulated amortization. 14 Other assets (attach statement) 15 Total assets Liabilities and Shareholders' Equity 16 Accounts payable.. 17 Mortgages, notes, bonds payable in less than 1 year 18 Other current liabilities (attach statement). . ) 19 Loans from shareholders 20 Mortgages, notes, bonds payable in 1 year or more 21 Other liabilities (attach statement), 22 Capital stock: a Preferred stock b Common stock 23 Additional paid-in capital 24 Retained earnings-Appropriated (attach statement) 25 Retained earnings-Unappropriated. 26 Adjustments to shareholders' equity (attach statement) 27 Less cost of treasury stock 28 Total liabilities and shareholders' equity Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. 1 Net income (loss) per books. 7 Income recorded on books this year 2 Federal income tax per books not included on this retum (itemize): 3 Excess of capital losses over capital gains Tax-exempt interest $ - Income subject to tax not recorded on books this year (itemize): 8 Deductions on this retum not charged 5 Expenses recorded on books this year not against book income this year (itemize): deducted on this return (itemize): a Depreciation $ a Depreciation b Charitable contributions $ b Charitable contributions. $ c Travel and entertainment $ 9 Add lines 7 and 8 Add lines 1 through 5. Income (page 1, line 28) - line 6 less line 9 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 1 Balance at beginning of year 5 Distributions: a Cash. 2 Net income (loss) per books. b Stock 3 Other increases (itemize): c Property 6 Other decreases (itemize): 7 Add lines 5 and 6 5 Add lines 1, 2, and 3 8 Balance at end of year (line 4 less line 7) Form 1120 (2019) 4 $ 6 10 4