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TAX RETURN CORPORATON FINAL John Smith (111-11-1112) and Oscar Ortega (111-121213) are active members of Temp LLC. The LLC Federal ID is 55-555556. It uses cash basis of accounting and calander year for 2022 tax return. Its current address is 456 Your Street, Houston, TX 77005 The following information was taken from LLC books Temp LLC is in Chemical Manufacturing Business and started business on 01/01/2022 Temp LLC files corporate income tax return-form 1120 Revenues Sales 3,200,000 Taxable interest from Savings Account 1,500 Tax Exempt Interest 2,000 Net Gain on Stock Sale 10,000 13,500 Total Income 3,213,500 Expenses Advertising 380,000 Charitable Contribution 28,000 Depreciation Expense 380,000 Employee w2 Wages 1,000,000 Salaries to officers(each 400,000) 800,000 Legal and Professional 40,000 Rent 120,000 Insurance 60,000 Office Expenses 200,000 Payroll Taxes 56,000 Utilities 62,000 Premium on life insurance policy of John and Ortega 36,000 Total Expenses 3,162,000 Net Income before taxes 51,500 Federal Income Taxes 21,452 Net Income per books 30,048 Temp bought comm stock shares 1000 shares on 04/01/2022 for $100,000 and on 12/31/2022 sold 500 shares for $60,000 The LLC's Balance Sheet on December 31,2022 is as follows Temp bought equipment on 04/01/2022 costing 380,000 and wats to take maximum depreciation Check Figures Beginning Ending Form Line # Amount Assets 1120 11 3,211,500 Cash 120,000 1120 26 362,000 Tax Exempt Securities 120,000 1120 31 21,452 Marketable Securities 50,000 Fixed Assets 380,000 Sch l 15 290,000 Accumulated Depreciation -380,000 SCH L 16 228,500 18 21,452 Fed Income Tax Payable Total Assets 290,000 22b 10,000 28 290,000 Liabilities and Equity SCH M1 1 30,048 Accounts Payable 228,500 2 21,452 Fedearl Income Tax Payable 21,452 6 104,150 Capital Stock 10,000 10 102,150 Retained Earnings 30,048 SCH M2 2 30,048 Total Liabilities and Equity 290,000 John and Ortega both own 50% of stock. Prinipal Business code is 325100

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