2022 general information page 1 rose apothecary inc 99 1234567 forms n
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2022
General Information
Page 1
Rose Apothecary, Inc
99-1234567
Forms needed for this return
Federal: 1120, 1125-A, 1125-E, Sch G, 4562
Tax Rates
Federal
Carryovers to 2023
Federal Carryovers
Contributions
-
Current Year
Marginal
Effective
21%
21%
Estimates
Federal Estimates
4/18/23
6/15/23
9/15/23
12/15/23
DO NOT FILE
Overpayment
Balance
0
0.
0
0.
0.
150,000.
150,000.
Total $
150,000. $
0
150,000.
43,889. Form 1120
Department of the Treasury
Internal Revenue Service
A Check if:
1a Consolidated return
(attach Form 851) . . .
b Life/nonlife consoli-
dated return.
2 Personal holding co.
(attach Sch. PH)
3 Personal service
corp. (see instrs)..
U.S. Corporation Income Tax Return
For calendar year 2022 or tax year beginning
TYPE
OR
PRINT
"
2022, ending
Go to www.irs.gov/Form1120 for instructions and the latest information.
Inc
Rose Apothecary,
299 Durham Regional Highway 47
Goodwood, OH 01047
OMB No. 1545-0123
2022
B Employer identification number
99-1234567
C Date incorporated
1/01/2022
D Total assets (see instructions)
$
760,000.
4 Schedule M-3 attached
E
Check if: (1) ☑Initial return (2)
Final return
(3)
Name change (4)
Address change
INCOME
4
FOR LIMITATIONS ON DEDUCTIONS
DEDUCTIONS SEE INSTRUCTIONS
1 a Gross receipts or sales
b Returns and allowances
c Balance. Subtract line 1b from line 1a.
2 Cost of goods sold (attach Form 1125-A).
3 Gross profit. Subtract line 2 from line 1c.
5
Dividends and inclusions (Schedule C, line 23)
Interest..
6 Gross rents..
7 Gross royalties.
8 Capital gain net income (attach Schedule D (Form 1120)).
9 Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
10 Other income (see instructions
11 Total income. Add lines 3 through 10. .....
12 Compensation of officers (see instructions
13 Salaries and wages (less employment credits).
14 Repairs and maintenance.
15 Bad debts
16 Rents
1 a
1 b
1,131,361.
25,000.
1 c
1,106,361.
2
150,000.
3
956,361.
4
10,000.
5
6
7
8
9
-
attach statement).
10
11
966,361.
-
attach Form 1125-E).
12
100,000.
13
70,000.
14
15
17
Taxes and licenses.
CI
T M
от
18
Interest (see instructions).
19
Charitable contributions.
T D
RE
22 Advertising
23 Pension, profit-sharing, etc., plans
24 Employee benefit programs.
25 Reserved for future use.
26 Other deductions (attach statement)
DO NOT FILE
27 Total deductions. Add lines 12 through 26..
25
See Statement 1
28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. .
29 a Net operating loss deduction (see instructions).
b Special deductions (Schedule C, line 24).
c Add lines 29a and 29b.
30
Taxable income. Subtract line 29c from line 28. See instructions.
29 a
29 b
16
12,000.
17
2,000.
18
19
56,111.
20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562). 20
21 Depletion.
100,000.
21
72222222
28
1,250.
461,361
505,000.
120,000.
5,000.
29 c
TAX REFUNDABLE
CREDITS AND PUTS
30
5,000.
500,000.
32
Reserved for future use.
31 Total tax (Schedule J, Part I, line 11).
33 Total payments and credits (Schedule J, Part III, line 23)
34 Estimated tax penalty. See instructions. Check if Form 2220 is attached..
35 Amount owed. If line 33 is smaller than the total of lines 31 and 34, enter amount owed.
36 Overpayment. If line 33 is larger than the total of lines 31 and 34, enter amount overpaid
37 Enter amount from line 36 you want: Credited to 2023 estimated tax
31
105,000.
32
33
105,000.
☐
34
35
0.
36
Refunded
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, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
37
Sign
Here
Signature of officer
Print/Type preparer's name
Paid
Date
Title
Preparer's signature
Date
Non-Paid Preparer
May the IRS discuss
this return with the
preparer shown below?
See instructions.
☐ Yes ☐ No
Preparer
Firm's name
PTIN
Check
if
self-employed
Firm's EIN
Use Only
Firm's address
BAA For Paperwork Reduction Act Notice, see separate instructions.
CPCA0205 10/04/22
Phone no.
Form 1120 (2022) Form 1120 (2022) Rose Apothecary, Inc
Schedule C Dividends, Inclusions, and Special
1
Deductions (see instructions)
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).
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. .
5 Dividends on certain preferred stock of 20%-or-more-owned
public utilities...
6 Dividends from less-than-20%-owned foreign corporations and
certain FSCs..
7 Dividends from 20%-or-more-owned foreign corporations and
certain FSCs..
8 Dividends from wholly owned foreign subsidiaries.
9 Subtotal. Add lines 1 through 8. See instructions for limitations..
10 Dividends from domestic corporations received by a small business
investment company operating under the Small Business
Investment Act of 1958.
11 Dividends from affiliated group members.
12 Dividends from certain FSCs.
13 Foreign-source portion of dividends received from a specified
10%-owned foreign corporation (excluding hybrid dividends)
(see instructions).
14 Dividends from foreign corporations not included on line 3, 6, 7, 8,
11, 12, or 13 (including any hybrid dividends).
15 Reserved for future use.
99-1234567
(a) Dividends and
inclusions
(b) Percentage
10,000.
50
65
10,000.
See
instructions
23.3
26.7
50
Page 2
(c) Special deductions
(a) x (b)
5,000.
65
100
See
instructions
5,000.
DO NOT FILE
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
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.
22
21
Deduction for dividends paid on certain preferred stock of
public utilities...
22 Section 250 deduction (attach Form 8993).
23 Total dividends and inclusions. Add column (a), lines 9 through 20.
Enter here and on page 1, line 4.
10,000.
24 Total special deductions. Add column (c) lines 9 through 22. Enter here and on page 1, line 29b
100
100
100
100
100
5,000.
Form 1120 (2022)
CPCA0212 10/04/22 Form 1120 (2022)
Rose Apothecary, Inc
|Schedule J| Tax Computation and Payment (see instructions)
Part I - Tax Computation
99-1234567
Page 3
1
Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)). See instructions
2 Income tax. See instructions.
2
105,000.
3 Base erosion minimum tax amount (attach Form 8991).
3
4
105,000.
4 Add lines 2 and 3..
5a Foreign tax credit (attach Form 1118).
b Credit from Form 8834 (see instructions).
c General business credit (attach Form 3800).
d Credit for prior year minimum tax (attach Form 8827)
e Bond credits from Form 8912. . . .
6 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)..
b Recapture of low-income housing credit (attach Form 8611).
5a
5b
5c
5d
5e
6
7
105,000.
8
9a
9b
c Interest due under the look-back method
(attach Form 8697)..
-
· completed long-term contracts
9c
d Interest due under the look-back method - income forecast method (attach
Form 8866)..
9d
e Alternative tax on qualifying shipping activities (attach Form 8902).
9e
9f
-
attach statement)
9g
10
11
105,000.
f Interest/tax due under section 453A(c) and/or section 453(1).
g Other (see instructions
10 Total. Add lines 9a through 9g..
11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31.
Part II - Reserved for Future Use
12 Reserved for future use
Part III – Payments and Refundable Credits
13 2021 overpayment credited to 2022.
14 2022 estimated tax payments.
15 2022 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:
a Form 2439.
b Form 4136
c Reserved for future use
DO NOT FILE
d Other (attach statement ― see instructions)
21 Total credits. Add lines 20a through 20d.
22 Reserved for future use
20 a
20 b
20 c
20 d
23 Total payments and credits. Add lines 19 and 21. Enter here and on page 1, line 33.
CPCA0234 10/05/22
12
13
14
105,000.
15
16
105,000.
17
18
19
105,000.
22
བསལ།
105,000.
Form 1120 (2022) Form 1120 (2022)
Schedule K
Rose Apothecary, Inc
Other Information (see instructions)
1 Check accounting method: a ☐ Cash b ☑ Accrual
2 See the instructions and enter the:
a Business activity code no. 456120
b Business activity Retail Store
c Product or service Local Crafts
99-1234567
с ☐ Other (specify)
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 At the end of the tax year:
a 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 I 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 (i) through (iv) below.
Page 4
Yes No
X
☑
X
(i) Name of Corporation
(ii) Employer
Identification Number
(if any)
(iii) Country of
Incorporation
If "Yes," complete (i) through (iv) below.
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.
(i) Name of Entity
DO NOT FILE
(ii) Employer
Identification Number
(if any)
(iii) Country of
Organization
(iv) Percentage
Owned in Voting
Stock
(iv) Maximum
Percentage Owned in
Profit, Loss, or Capital
6 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.
7 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
8 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.
5,000.
9 Enter the amount of tax-exempt interest received or accrued during the tax year $
10 Enter the number of shareholders at the end of the tax year (if 100 or fewer)
11
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.
12 Enter the available NOL carryover from prior tax years (do not reduce it by any
deduction reported on page 1, line 29a.)
CPCA0234 10/05/22
☑
None
Form 1120 (2022)/n Taxation II - Tax Case #3
Rose Apothecary, Inc
Read all this information first before you start the case to get an overview and understanding of the
case.
-
You will be using ProConnect (www.proconnect.intuit.com) to complete this case – like Case #2, but this
time you will be completing a Corporation (1120) on your own. You have been provided with the Prior
Year Tax Return. In the real world, you will ask a new client for the prior year tax return so you can input
the information needed and then update the return with current year information from the trial
balance.
This is a new client to you, so the prior-year tax return has been provided in BlackBoard. You will use this
information, along with the trial balance and information below to complete the tax return.
History on the Company: David Rose created the company to sell goods in a retail store. You picked
them up as a client this year and they have asked you to prepare their 2023 tax return.
Step 1: Review all of the prior-year return. You will be using this information to fill out the general
information in ProConnect.
Step 2: Log into ProConnect (www.proconnect.intuit.com)
Step 3: Click on Tax Returns on the left-hand side and click Create Tax Return on the upper right corner.
Step 4: Choose your existing client from the Drop-down menu “Tax - Semester Year - Your Name" and
Choose Type 1120 and Tax Year 2023. Change the Tax Return Name to “Case #3 – Rose Apothecary".
Step 5: Pull out prior year's return and let's start entering information.
-
Under client information, enter the information from the top of Form 1120 and Page 4.
• Change Prepared by to Non-Paid Preparer
-
Step 6: Click Preview Forms – does everything match at the top except for initial return? Answer this
question in your submission text in Blackboard for 1 point out of your total: Should it be an initial
return? Why or why not? If you don't answer this question in your submission, you will lose one point
out of your total.
Step 7: Let's continue entering information.
• Click on Officer Information and enter the officer information from the prior year 1125-E and
Schedule G. See if you can find their officer wages for this year based on last year's number on
the financials.
Step 8: Using the Financial Statements below, start entering the information from the Income Statement
and Balance Sheet. Stop and compare periodically to see if it closely resembles last year.
Hint: Balance Sheet
- Review the asterisk (*) at the top when entering the Balance Sheet Information. Go to
Deductions -> Depreciation (NOT direct input) •
•
Add in the $100,000 asset from the prior year and 100% bonus. Call it Equipment and use
date 1/1/2022.
Look at Furniture & Fixtures, is there a change from prior year to current year?
O
If yes, What is the difference?
If no, there are no additions.
Before you add this as Furniture, you need to check one more thing. Were there any
sales of equipment? Do you see a Gain/Loss account on your Financials? If no, the
difference is your addition. If yes, ask me for help. Use date 12/31/2023 for the
addition. It's 7 year property for furniture and fixtures.
Income Statement/Notes - make sure to review the 2022 Carryover information to 2023 and when
payments were made on page 1 of the prior year return and enter where appropriate.
Also remember how to calculate the difference between Tax Depreciation and Book Depreciation for
your M adjustment. Also, don't forget how to calculate retained earnings for your M-2.
Step 9: If you have completed everything correctly, your Page 1, line 30 should equal $484,254 and Total
Assets/Liab & Capital on the Balance Sheet should equal $902,000.
Your overpayment will be credited to 2024, not refunded.
Finally, you can print a Complete Return and Upload to Blackboard. Click on File Return -> Print
Complete Return and Create the PDF.
If you want to use the Book to Tax Worksheet, you are welcome to submit it for any partial credit.
REMINDER: ALL PARTS OF ALL CASES MUST BE SUBMITTED TO RECEIVE CREDIT FOR THIS COURSE. IF
YOU SUBMIT LATE, YOU GET NO POINTS BUT THE CASE MUST BE SUBMITTED ANYWAY. Balance Sheet - GAAP Basis
2023
2022
December 31,
Assets
Current Assets
Cash
Accounts Receivable
Less Allowance for Doubtful Accounts
Prepaid expenses and other current assets
Total Current Assets
Property and Equipment
Machinery and equipment
Furniture and fixtures
$ 457,000 $130,000
300,000
250,000
(90,000)
(85,000)
25,000
15,000
692,000
310,000
100,000
100,000
50,000
150,000 100,000
Less accumulated depreciation - Equipment
Less accumulated depreciation - Furniture
Net Property and Equipment
Other Assets
Deposits
Total Other Assets
Total Assets
Liabilities and Stockholder's Equity
Current Liabilities
Current portion of long-term debt
(40,000) (20,000)
110,000
80,000.00
100,000 370,000
100,000 370,000
$ 902,000 $760,000
50,000 100,000
Accounts payable
40,000
40,000
Accrued payroll
125,000
Other Accrued expenses
63,000
130,000
Total Current Liabilities
153,000
395,000
Long-term Liabilities
Long-term debt, net of current portion
450,000
Other Long Term Liabilities
50,000
50,000
Total Long-term Liabilities
500,000
50,000
Total Liabilities
Stockholder's Equity
Common stock
Additional paid-in capital
Retained earnings
Total Stockholder's Equity
Total Liabilities and Stockholder's Equity
$ 902,000 $760,000
653,000
445,000
1,000
40,000
1,000
40,000
208,000 274,000
249,000 315,000 Statement of Income - GAAP BASIS
Year ended December 31,
2023
2022
Sales
Returns and Allowances
Net Sales
Cost of Sales - Labor
Gross Profit
Officer's Wages
Employee Salaries
Bad Debt Expense
Rent Expense
Ohio Tax Expense
Charitable Contributions
Depreciation Expense
Advertising Expense
1,550,000
75,000
1,131,361
25,000
1,475,000
1,106,361
430,000
150,000
1,045,000
956,361
250,000
100,000
175,000
70,000
5,000
85,000
24,000
12,000
5,000
2,000
100,000
20,000
20,000
25,000
120,000
Other Deductions - Meals
10,000
2,500
Other Deductions - Officer's Life Insurance Expense
4,500
4,500
Operating Income
526,500
440,361
Other Income/(Expense) - Dividend Income
15,000
10,000
Other Income/(Expense) - Municipal Bond Interest Income
7,000
5,000
Other Income/(Expense) - Gain on Sale of Equipment
Total Other Income (Expense), net
22,000
15,000
Income Before Federal Income Taxes
Federal Income Tax Expense/Payments
Net Income
548,500 455,361
150,000
105,000
398,500
350,361 Book to Tax Difference Worksheet
Sales
Returns and Allowances
Net Sales
Cost of Sales - Labor
Gross Profit
Officer's Wages
Employee Salaries
Bad Debt Expense
Rent Expense
Ohio Tax Expense
Charitable Contributions
Depreciation Expense
Advertising Expense
Other Deductions - Meals
Operating Income
Other Deductions Officer's Life Insurance Expense
Other Income/(Expense) - Dividend Income
Other Income/(Expense) - Municipal Bond Interest Income
Other Income/(Expense) - Gain on Sale of Equipment
Total Other Income (Expense), net
Income Before Federal Income Taxes
Federal Income Tax Expense/Payments
Net Income
A
2023 Book Numbers
1,550,000
75,000
1,475,000
430,000
1,045,000
250,000
175,000
B
Book to Tax Adjustments Taxable Income
A + B = C
Book Depreciation
Tax Depreciation
Difference (Book - Tax)
If Book Tax = Unfavorable (+)
If Tax Book Favorable (-)
Book Gain/(Loss)
Tax Gain/(Loss)
Difference (Book - Tax)
5,000
24,000
5,000
20,000
25,000
10,000
4,500
526,500
15,000
7,000
22,000
548,500
150,000
398,500
Taxable Income before DRD & NOL