the current corporate tax rate is 21%

all forms included

Corporate Tax Return Problem 2 . Required: Complete Blue Catering Service Inc.'s (BCS) 2019 Form 1120, Schedule D, and Schedule G (if applicable) using the information provided below. Form 4562 for depreciation is not required. Include the amount of tax depreciation given in the problem on the appropriate line on the first page of Form 1120. 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: Cara Siler, Janna Funk, and Valerie Cloward each own one-third of the common stock of Blue Catering Services Inc. (BCS). BCS was incorporated on February 4, 2011. It has only one class of stock outstanding and operates as a C corporation for tax purposes. BCS caters all types of social events throughout southern California. . . O O BCS is located at 540 Waverly Way, San Diego, California 92101. BCS's Employer Identification Number is 38-4743474. BCS's business activity is catering food and services. Its business activity code is 722300. The shareholders also work as officers for the corporation as follows: Cara is the chief executive officer and president (Social Security number 231-54- 8976). Janna is the executive vice president and chief operating officer (Social Security number 798-56-3241). Valerie is the vice president of finance (Social Security number 879-21-4536). All officers devote 100 percent of their time to the business and all officers are U.S. citizens. BCS uses the accrual method of accounting and has a calendar year-end. BCS made four equal estimated tax payments of $8,750 each. Its tax liability last year was $41,000. If it has overpaid its federal tax liability, BCS would like to receive a refund. BCS paid a dividend of $30,000 to its shareholders on November 1. BCS had ample earnings and profits (E&P) to absorb the distribution. O The following is BCS's audited income statement for 2019- BCS Income Statement For year ending December 31, 2019 Revenue from sales $ 1,800,000 Sales returns and allowances (5,000) Cost of goods sold (350.000) Gross profit from operations $ 1,445,000 Other income: Capital loss $ (15,000) Dividend income 25,000 Interest income 10,000 Gross income $ 1,465,000 Expenses: Compensation $ (950,000) Depreciation (10,000) Bad debt expense (15,000) Meals (3,000) Maintenance (6,000) Property taxes (11,000) State income taxes (45,000) Other taxes (44,000) Rent (60,000) Interest (5,000) Advertising (52,000) Professional services (16,000) Employee benefits (32,000) Supplies (5,000) (27,000) (1.281.000) Income before taxes 184,000 Federal income tax expense (62,000) Net income after taxes $ 122,000 Other expenses Total expenses Notes: 1. BCS's inventory-related purchases during 2019 were $360,000. It values its inventory based on cost using the FIFO inventory cost flow method. Assume the rules of $263 A do not apply to BCS. 2. Of the $10,000 interest income, $1,250 was from a City of Irvine bond issued in 2016, $1,750 was from an Oceanside city bond issued in 2018, $1,000 was from a U.S. Treasury bond, and the remaining $6,000 was from a money market account. 3. BCS's dividend income came from Clever Cakes Inc. (CC). BCS owned 10,000 shares of the stock in Clever Cakes at the beginning of the year. This represented 10 percent of SSM outstanding stock. 4. On October 1, 2019, BCS sold 1,000 shares of its CC stock for $25,000. It had originally purchased these shares on April 18, 2014, for $40,000. After the sale, BCS owned 9 percent of CC. 5. BCS's compensation is as follows: . Cara, $150,000 Janna, $140,000 Valerie, $130,000 Other, $530,000 6. BCS wrote off $25,000 in accounts receivable as uncollectible during the year. 7. BCS's tax depreciation was $28,000. None of the depreciation should be claimed on Form 1125A. 8. The $5,000 interest expense was from a business loan. 9. Other expenses include $6,000 for premiums paid on term life insurance policies for which BCS is the beneficiary. The policies cover the lives of Cara, Janna, and Valerie. The following are BCS's audited balance sheets as of January 1, 2019, and December 31, 2019. 2019 December 31 January 1 Assets Cash Accounts receivable Allowance for doubtful accounts Inventory U.S. government bonds State and local bonds Investments in stock Fixed assets Accumulated depreciation Other assets Total assets Liabilities and Shareholders' Equity Accounts payable Other current liabilities Other liabilities Capital stock Retained earnings Total liabilities and shareholders' equity $ 180,000 560,000 (60,000) 140,000 20,000 120,000 400,000 140,000 (50,000) 20,000 $1,470,000 $ 205,000 580,000 (50,000) 150,000 20,000 120,000 360,000 160,000 (60,000) 21,000 $1,506,000 $ 280,000 20,000 40,000 400,000 730,000 $1,470,000 $ 240,000 18,000 26,000 400,000 822,000 $1,506,000 OMEN 1545012 rom 1120 2019 Employw deca cute incorporated Total section 19 Adresse unge Income Rents U.S. Corporation Income Tax Return .2019, ending For calendar year 2018 or tax year beginning Department of the Thay Go to www.insgolForm120 for Instructions and the latest information inte levere are A Check it Name la Consolidated wch Form 181 TYPE Literie como Number, street and room or suite nella P.O.Box, se instruction de return OR 2 Personengo PRINT nach Scho . Cry or town, state or province, country, and ZIP or foreign postal code 3 Puson Vice Final return E Check it return Name change Sched ta ta Gross receptor sales. 1b b Returns and allowances 1c c Balance. Subtract line 1b from line 1a 2 2 Cost of goods sold attach Form 1125-A) 3 3 Gross profit. Subtract line 2 from line 10 4 Dividends and inclusions (Schedule C, line 23) 5 5 Interest 6 Grossrents 6 7 Gross royalties 7 8 8 Capital gain net income (attach Schedule D Form 11201 9 9 Net gain or loss) from Form 4797. Part II, line 17 (attach Form 4797) 10 Other income se instructions-attach statement 10 11 Total income. Addins through 10 11 12 Compensation of officers (instructions-attach Form 1125- 12 13 Salaries and wages fess employment credits 13 14 Repairs and maintenance 14 15 Bad debts 15 16 16 17 Traces and licenses 17 18 Interests instructions 18 19 Charitable contributions. 19 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) 20 21 Depletion 21 22 Advertising 23 Pension, profit sharing, etc.. plans 24 Employee benefit programs 24 Reserved for Mure use. 25 26 Other deductions (attach statement 27 Total deductions. Add lines 12 through 26 27 28 Taxable income before net operating to deduction and special deductions. Subtract line 27 from Iine 11. 28 2 Net operating loss deduction (see instructions 23 b Special deductions (Schedule C, line 24 Add lines 29 and 29b 30 Taxable income. Subtract line 280 from line 28. See instructions 30 31 Total tax (Schedule J, Part I line 11). 31 2019 net 965 tax liability paid (Schedule J, Part , line 12). 33 Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23) 33 34 Estimated tax penalty. See Instructions. Check if Form 2220 is attached 34 35 Amount owed. line 33 is smaller than the total of Ines 31, 32, and 34, enter amount owed 36 Overpayment. I line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid 35 37 Enter amount from line 36 you want: Credited to 2020 estimated tax Refunded 37 Under Berat ry, I declare that I have also including comme dans une tell my browse and com Sign and complecione prepor other man foydalion which preparar May the discuss thirum Here Serruction. YN Title Dale Signature of officer PrintType preparer's name Preparer's sure Paid Check seller Preparer Firm's EN Deductions (See Instructions for imitations on deductions.) XRXURY8.9u 8 Use Only Formy name Phone Cat No. 114500 Form 1120 2019 For Paperwork Reduction Act Notice, see separate instructions. Dividends and Inclusions Page 2 Specchio 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 3 Dividends on certain debt-financed stock of domestic and foreign corporations Dividends on certain preferred stock of less-than-20%-owned public utilities 4 233 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 FSC 65 8 Dividends from wholly owned foreign subsidiaries 100 9 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, of 13 (including any hybrid dividends). 100 14 Instruction 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 Forms) 5471) (see instructions) b Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions). Other inclusions from CFCs under subpart F not included on line 15, 16, 16b, or 17 (attach Form) 5471) (see instructions). 17 Global Intangible Low-Taxed Income (GILTI (attach Form) 5471 and Form 8992) 18 Gross-up for foreign taxes doomed 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 8983) Total dividends and inclusions. Add column (al. lines 9 through 20. Enter here and on page 1. line 4 Total special deductions. Add column (cl. lines 9 throuch 22. Enter here and on page 1. in 29 24 Form 1120 2019 Page 3 2 3 4 e 6 6 7 8 Form 1120 (2019) Schedule J Tax Computation and Payment (see instructions) Part Tax Computation 1 Check if the corporation is a member of a controlled group (attach Schedule (Form 11201). 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) 5a b Credit from Form 8834 (see instructions) 5b C General business credit (attach Form 3800) 5c 5d d Credit for prior year minimum tax (attach Form 8827) 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) 9a 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) 9c d Interest due under the look back method-income forecast method (attach Form 8866) 9d Alternative tax on qualifying shipping activities (attach Form 8902) Se f Other (see instructions-attach statement) 9f 10 Total. Add lines 9a through 91 . 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 IIl-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. b Form 4136 20b Form 8827, line 50 20c d Other (attach statement-see instructions) 200 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 20a 21 23 Form 1120 20199 Page c Other specity Yes Form 1120 2019 Schedule K Other Information (see instructions) 1 Check accounting method a Cash b Accrual 2 See the instructions and enter the a Busines activity code no Business activity c Product or service 3 Is the corporation a subsidiary in an aliated group or a parent-subsidiary controlled group? "Yes." enter name and EIN of the parent corporation 4 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 dasses of the corporation's stock entitled to vote? I "Yes." complete Part of Schedule G (Form 1120) (attach Schedule 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? Yes." complete Part II of Schedule G Form 1120) (attach Schedule 5 At the end of the tax yeur, did the corporation 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 861, Affiliations Schedule? For rules of constructive ownership, see instructions If "Yes" complete through ( below Employer Name of Corporation Country of M Percentage Identification Number Incorporation Owned in Voting ad 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. Yes complete through Mbelow. Employer Country of PM Manrum Name of Crity derication Number Percentage Oured arv Organization Profit Loss, or CAN 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 eaming and profits? See sections 301 and 316 .. I "Yes," e 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 51 for each subsidiary. At any time during the tax year, did one foreign person own directly or indirectly, at 25% of the total voting power of 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.W "Yes,"enter: (A) Percentage owned and Owner's country Ic) 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 bax the corporation issued publicly offered debt instruments with originale discount checked the corporation may have to file Form 1981, Information Retum for Publicy Offered Originale Discount Instruments Enter the amount of tax-exempt interest received or acred during the tax your Enter the number of shareholders at the end of the tax year of 100 or fewer If the corporation has an NOL. for the tax year and is clecting to forego the carryback period, check here free instruction If the corporation is fling a consolidated retum, the statement required by Regions section 1.1502-21) 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 29) Form 11200 8 10 11 12 Page 5 Yes No 16 17 18 Form 1120 (2019) Schedule K Other Information (continued from page 4) 13 Are the corporation's total receipts (page 1, line 1a, plus lines A through 10) for the tax year and its total assets at the end of the tax year less than $250,000? , total amount of cash distributions and the book value of property distributions (other than cash) made during the tax years 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? b "Yes," did or will the corporation file required Form(s) 10997. 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? 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? 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 59 (0)(2) and (3)) "Yes," complete and attach Form 8991. Did the corporation have an election under section 1621) for any real property trade or business or any farming business in effect during the tax year? See Instructions. Does the corporation satisfy one or more of the following? See instructions a 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. 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 23 24 25 End of tary Form 1120 2019 Schedule L Beginning of tax year Balance Sheets per Books (a) Assets b) la 1 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 Depleta de assets. Less accumulated depletion 12 Land not of any amortization 13a Intangible assets armortizable 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 Babilities (attach statement 22 Capital stock a Preferred stock b Common stock 23 Additional paid-in capital 24 Retained earnings-Appropriated (attach statement 25 Retained earrings-Unappropriated Adjustments to shareholders' equity attach statement 27 Less cost of treasury stock 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 foss) per books. 7 Income recorded on books this year 2 Federal income tax per books not included on this return hemice 3 Excess of capital losses over capital gains Tax-exempt interest 4 Income subject to tax not recorded on books this year itemize 8 Deductions on this return not charged 5 Expenses recorded on books this year not against book income this year terme deducted on this return (itemire: a Depreciation $ a Depreciation. $ Charitable contributions $ b Charitable contributions $ c Travel and entertainment. $ Add lines 7 and 8 6 Add lines 1 through 10 Income paza 1. in 28---fine blessing Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 5 1 Balance at beginning of year Distributions a Cash b Stock 2 Net income foss) per books 3 Other increases (tomize c Property 6 Other decreases (temire 7 Add lines and 6 B Balance at end of year Dine 4 less line 7 4 Add Ines 1.2 and 3 For 1120 2018 Corporate Tax Return Problem 2 . Required: Complete Blue Catering Service Inc.'s (BCS) 2019 Form 1120, Schedule D, and Schedule G (if applicable) using the information provided below. Form 4562 for depreciation is not required. Include the amount of tax depreciation given in the problem on the appropriate line on the first page of Form 1120. 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: Cara Siler, Janna Funk, and Valerie Cloward each own one-third of the common stock of Blue Catering Services Inc. (BCS). BCS was incorporated on February 4, 2011. It has only one class of stock outstanding and operates as a C corporation for tax purposes. BCS caters all types of social events throughout southern California. . . O O BCS is located at 540 Waverly Way, San Diego, California 92101. BCS's Employer Identification Number is 38-4743474. BCS's business activity is catering food and services. Its business activity code is 722300. The shareholders also work as officers for the corporation as follows: Cara is the chief executive officer and president (Social Security number 231-54- 8976). Janna is the executive vice president and chief operating officer (Social Security number 798-56-3241). Valerie is the vice president of finance (Social Security number 879-21-4536). All officers devote 100 percent of their time to the business and all officers are U.S. citizens. BCS uses the accrual method of accounting and has a calendar year-end. BCS made four equal estimated tax payments of $8,750 each. Its tax liability last year was $41,000. If it has overpaid its federal tax liability, BCS would like to receive a refund. BCS paid a dividend of $30,000 to its shareholders on November 1. BCS had ample earnings and profits (E&P) to absorb the distribution. O The following is BCS's audited income statement for 2019- BCS Income Statement For year ending December 31, 2019 Revenue from sales $ 1,800,000 Sales returns and allowances (5,000) Cost of goods sold (350.000) Gross profit from operations $ 1,445,000 Other income: Capital loss $ (15,000) Dividend income 25,000 Interest income 10,000 Gross income $ 1,465,000 Expenses: Compensation $ (950,000) Depreciation (10,000) Bad debt expense (15,000) Meals (3,000) Maintenance (6,000) Property taxes (11,000) State income taxes (45,000) Other taxes (44,000) Rent (60,000) Interest (5,000) Advertising (52,000) Professional services (16,000) Employee benefits (32,000) Supplies (5,000) (27,000) (1.281.000) Income before taxes 184,000 Federal income tax expense (62,000) Net income after taxes $ 122,000 Other expenses Total expenses Notes: 1. BCS's inventory-related purchases during 2019 were $360,000. It values its inventory based on cost using the FIFO inventory cost flow method. Assume the rules of $263 A do not apply to BCS. 2. Of the $10,000 interest income, $1,250 was from a City of Irvine bond issued in 2016, $1,750 was from an Oceanside city bond issued in 2018, $1,000 was from a U.S. Treasury bond, and the remaining $6,000 was from a money market account. 3. BCS's dividend income came from Clever Cakes Inc. (CC). BCS owned 10,000 shares of the stock in Clever Cakes at the beginning of the year. This represented 10 percent of SSM outstanding stock. 4. On October 1, 2019, BCS sold 1,000 shares of its CC stock for $25,000. It had originally purchased these shares on April 18, 2014, for $40,000. After the sale, BCS owned 9 percent of CC. 5. BCS's compensation is as follows: . Cara, $150,000 Janna, $140,000 Valerie, $130,000 Other, $530,000 6. BCS wrote off $25,000 in accounts receivable as uncollectible during the year. 7. BCS's tax depreciation was $28,000. None of the depreciation should be claimed on Form 1125A. 8. The $5,000 interest expense was from a business loan. 9. Other expenses include $6,000 for premiums paid on term life insurance policies for which BCS is the beneficiary. The policies cover the lives of Cara, Janna, and Valerie. The following are BCS's audited balance sheets as of January 1, 2019, and December 31, 2019. 2019 December 31 January 1 Assets Cash Accounts receivable Allowance for doubtful accounts Inventory U.S. government bonds State and local bonds Investments in stock Fixed assets Accumulated depreciation Other assets Total assets Liabilities and Shareholders' Equity Accounts payable Other current liabilities Other liabilities Capital stock Retained earnings Total liabilities and shareholders' equity $ 180,000 560,000 (60,000) 140,000 20,000 120,000 400,000 140,000 (50,000) 20,000 $1,470,000 $ 205,000 580,000 (50,000) 150,000 20,000 120,000 360,000 160,000 (60,000) 21,000 $1,506,000 $ 280,000 20,000 40,000 400,000 730,000 $1,470,000 $ 240,000 18,000 26,000 400,000 822,000 $1,506,000 OMEN 1545012 rom 1120 2019 Employw deca cute incorporated Total section 19 Adresse unge Income Rents U.S. Corporation Income Tax Return .2019, ending For calendar year 2018 or tax year beginning Department of the Thay Go to www.insgolForm120 for Instructions and the latest information inte levere are A Check it Name la Consolidated wch Form 181 TYPE Literie como Number, street and room or suite nella P.O.Box, se instruction de return OR 2 Personengo PRINT nach Scho . Cry or town, state or province, country, and ZIP or foreign postal code 3 Puson Vice Final return E Check it return Name change Sched ta ta Gross receptor sales. 1b b Returns and allowances 1c c Balance. Subtract line 1b from line 1a 2 2 Cost of goods sold attach Form 1125-A) 3 3 Gross profit. Subtract line 2 from line 10 4 Dividends and inclusions (Schedule C, line 23) 5 5 Interest 6 Grossrents 6 7 Gross royalties 7 8 8 Capital gain net income (attach Schedule D Form 11201 9 9 Net gain or loss) from Form 4797. Part II, line 17 (attach Form 4797) 10 Other income se instructions-attach statement 10 11 Total income. Addins through 10 11 12 Compensation of officers (instructions-attach Form 1125- 12 13 Salaries and wages fess employment credits 13 14 Repairs and maintenance 14 15 Bad debts 15 16 16 17 Traces and licenses 17 18 Interests instructions 18 19 Charitable contributions. 19 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) 20 21 Depletion 21 22 Advertising 23 Pension, profit sharing, etc.. plans 24 Employee benefit programs 24 Reserved for Mure use. 25 26 Other deductions (attach statement 27 Total deductions. Add lines 12 through 26 27 28 Taxable income before net operating to deduction and special deductions. Subtract line 27 from Iine 11. 28 2 Net operating loss deduction (see instructions 23 b Special deductions (Schedule C, line 24 Add lines 29 and 29b 30 Taxable income. Subtract line 280 from line 28. See instructions 30 31 Total tax (Schedule J, Part I line 11). 31 2019 net 965 tax liability paid (Schedule J, Part , line 12). 33 Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23) 33 34 Estimated tax penalty. See Instructions. Check if Form 2220 is attached 34 35 Amount owed. line 33 is smaller than the total of Ines 31, 32, and 34, enter amount owed 36 Overpayment. I line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid 35 37 Enter amount from line 36 you want: Credited to 2020 estimated tax Refunded 37 Under Berat ry, I declare that I have also including comme dans une tell my browse and com Sign and complecione prepor other man foydalion which preparar May the discuss thirum Here Serruction. YN Title Dale Signature of officer PrintType preparer's name Preparer's sure Paid Check seller Preparer Firm's EN Deductions (See Instructions for imitations on deductions.) XRXURY8.9u 8 Use Only Formy name Phone Cat No. 114500 Form 1120 2019 For Paperwork Reduction Act Notice, see separate instructions. Dividends and Inclusions Page 2 Specchio 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 3 Dividends on certain debt-financed stock of domestic and foreign corporations Dividends on certain preferred stock of less-than-20%-owned public utilities 4 233 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 FSC 65 8 Dividends from wholly owned foreign subsidiaries 100 9 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, of 13 (including any hybrid dividends). 100 14 Instruction 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 Forms) 5471) (see instructions) b Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions). Other inclusions from CFCs under subpart F not included on line 15, 16, 16b, or 17 (attach Form) 5471) (see instructions). 17 Global Intangible Low-Taxed Income (GILTI (attach Form) 5471 and Form 8992) 18 Gross-up for foreign taxes doomed 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 8983) Total dividends and inclusions. Add column (al. lines 9 through 20. Enter here and on page 1. line 4 Total special deductions. Add column (cl. lines 9 throuch 22. Enter here and on page 1. in 29 24 Form 1120 2019 Page 3 2 3 4 e 6 6 7 8 Form 1120 (2019) Schedule J Tax Computation and Payment (see instructions) Part Tax Computation 1 Check if the corporation is a member of a controlled group (attach Schedule (Form 11201). 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) 5a b Credit from Form 8834 (see instructions) 5b C General business credit (attach Form 3800) 5c 5d d Credit for prior year minimum tax (attach Form 8827) 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) 9a 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) 9c d Interest due under the look back method-income forecast method (attach Form 8866) 9d Alternative tax on qualifying shipping activities (attach Form 8902) Se f Other (see instructions-attach statement) 9f 10 Total. Add lines 9a through 91 . 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 IIl-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. b Form 4136 20b Form 8827, line 50 20c d Other (attach statement-see instructions) 200 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 20a 21 23 Form 1120 20199 Page c Other specity Yes Form 1120 2019 Schedule K Other Information (see instructions) 1 Check accounting method a Cash b Accrual 2 See the instructions and enter the a Busines activity code no Business activity c Product or service 3 Is the corporation a subsidiary in an aliated group or a parent-subsidiary controlled group? "Yes." enter name and EIN of the parent corporation 4 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 dasses of the corporation's stock entitled to vote? I "Yes." complete Part of Schedule G (Form 1120) (attach Schedule 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? Yes." complete Part II of Schedule G Form 1120) (attach Schedule 5 At the end of the tax yeur, did the corporation 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 861, Affiliations Schedule? For rules of constructive ownership, see instructions If "Yes" complete through ( below Employer Name of Corporation Country of M Percentage Identification Number Incorporation Owned in Voting ad 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. Yes complete through Mbelow. Employer Country of PM Manrum Name of Crity derication Number Percentage Oured arv Organization Profit Loss, or CAN 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 eaming and profits? See sections 301 and 316 .. I "Yes," e 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 51 for each subsidiary. At any time during the tax year, did one foreign person own directly or indirectly, at 25% of the total voting power of 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.W "Yes,"enter: (A) Percentage owned and Owner's country Ic) 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 bax the corporation issued publicly offered debt instruments with originale discount checked the corporation may have to file Form 1981, Information Retum for Publicy Offered Originale Discount Instruments Enter the amount of tax-exempt interest received or acred during the tax your Enter the number of shareholders at the end of the tax year of 100 or fewer If the corporation has an NOL. for the tax year and is clecting to forego the carryback period, check here free instruction If the corporation is fling a consolidated retum, the statement required by Regions section 1.1502-21) 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 29) Form 11200 8 10 11 12 Page 5 Yes No 16 17 18 Form 1120 (2019) Schedule K Other Information (continued from page 4) 13 Are the corporation's total receipts (page 1, line 1a, plus lines A through 10) for the tax year and its total assets at the end of the tax year less than $250,000? , total amount of cash distributions and the book value of property distributions (other than cash) made during the tax years 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? b "Yes," did or will the corporation file required Form(s) 10997. 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? 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? 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 59 (0)(2) and (3)) "Yes," complete and attach Form 8991. Did the corporation have an election under section 1621) for any real property trade or business or any farming business in effect during the tax year? See Instructions. Does the corporation satisfy one or more of the following? See instructions a 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. 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 23 24 25 End of tary Form 1120 2019 Schedule L Beginning of tax year Balance Sheets per Books (a) Assets b) la 1 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 Depleta de assets. Less accumulated depletion 12 Land not of any amortization 13a Intangible assets armortizable 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 Babilities (attach statement 22 Capital stock a Preferred stock b Common stock 23 Additional paid-in capital 24 Retained earnings-Appropriated (attach statement 25 Retained earrings-Unappropriated Adjustments to shareholders' equity attach statement 27 Less cost of treasury stock 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 foss) per books. 7 Income recorded on books this year 2 Federal income tax per books not included on this return hemice 3 Excess of capital losses over capital gains Tax-exempt interest 4 Income subject to tax not recorded on books this year itemize 8 Deductions on this return not charged 5 Expenses recorded on books this year not against book income this year terme deducted on this return (itemire: a Depreciation $ a Depreciation. $ Charitable contributions $ b Charitable contributions $ c Travel and entertainment. $ Add lines 7 and 8 6 Add lines 1 through 10 Income paza 1. in 28---fine blessing Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 5 1 Balance at beginning of year Distributions a Cash b Stock 2 Net income foss) per books 3 Other increases (tomize c Property 6 Other decreases (temire 7 Add lines and 6 B Balance at end of year Dine 4 less line 7 4 Add Ines 1.2 and 3 For 1120 2018