Viola Holloway and Renee Forrow are the sole equal shareholders in the corporation of Holloway And Forrow Enterprises, Inc.

 

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The Ilolloway And Eomow Enterprises, Inc. owns the following depreciable assets: ASSET DESCRIPTION Automobile - 2018 Lexus 460 (Five-year Property) Automobile – 2018 Cadillac Seville (Five-year Property) Furniture And Fixtures (Seven-year Property) DATE ACQUIRED April 1, 2018 ORIGINAL COST $ 50,000 FACTS Viola Ilolloway and Renee Forrow are the sole equal shareholders in the corporation of IHolloway And Forrow Enterprises, Inc. The corporation, which is a retail office supplies and stationery store, began its operations on January 2, 1985 (also date of incorporation). For Federal Income Tax purposes, the corporation is a calendar year taxpayer and uses the Accrual Method Of Accounting. Viola Holloway is the president of the corporation and its contact person for Federal Income Tax purposcs and Rence Forrow is the socretary and treasurer of the corporation. Both are full-time ermployees of the corporation devoting one hundred percent (100%) of their time to the business and each has an annual salary of $75,000. Viola Holloway's social security number is 678-90-1234 Renee Eorrow has social security number of 789-01-2345 and her address is 1606 Natalic Court Ilouston, Texas 77089-4637. FINANCIAL INFORMATION During the year of 2019, Holloway And Egrow, Enterpriscs, Inc. reported the following Income and Expenses (including necessary accruals) for Financial Accounting purposes: April 1, 2018 50,000 May 1, 2017 150,000 Each automobile was used a total of 18,000 miles during the year of 2019 all which were business miles. The automobiles were not available for personal use during off-duty hours and were used solely by Viola Holloway and Rence Forrow, who both have another vchicle available for personal use. For Federal Income Tax purposes, all of these assets are depreciated using the Modified Accelerated Cost Recovery System (MACRS). Section 179 Deduction was not elected in regards to any of these assets nor was Straight-Line Depreciation used. BALANCE SIIEETS The Balance Sheets (Financial Accounting) for the Holloway And Forrow Enterprises, Inc, at the beginning and cnding of the ycar of 2019 arc as follows: ASSETS Cash Trade Notes And Accounts Roccivable Inventory (Valued At Cost)* Marketable Securities - Long Term Depreciable Assets (And Land) Less: Accumulated Depreciation Other Assets (Deposits) Gross Reccipts Sales Retums And Allowances Purchases $1,482,000 109,000 510,000 Dividends Reccived Ermm Stock (Not Qualificd Dividends) January 1 S16,000 96,000 120,000 140,000 200.00K) ** 165,000) 12,000 December 31 $ 84,000 90,000 100,000 170,000 260,000 ** (115,000) 12,000 Investments In Less Than twenty percent (20%) Owned United States (U. S.) Corporation Interest Income: 80,000 Taxable Interest 18,000 7,200 150,(KX) 108,000 19,300 Тах-Еxermpt Interest Salarics: Officers Other Employees Repairs And Maintenance $ 599,000 $ 601,000 TOTAL ASSETS Rent Expense - Office Rent Expense - Equipment Payroll Taxes (Federal And State) Interest Expense Advertising Expense Charitable Contributions Legal And Professional Fees Depreciation Expense Utilities Expense Employee's Health Insurance Premiums Meals Eor Clients Officers' Life Insurance Premiums 84,000 15,500 19,600 25,200 33,500 48,000 18,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable (Non Recourse) Federal Income Taxes Payable Notes Payable - Short Tem (Recourse) Notes Puyable - Long Term (Recourse) S 96,000 8,600 16,000 164,000 10,000 304,400 $ 70,400 24,000 212,000 10,000 279,890 Common Stock Retained Earnings (Unappropriated) TOTAL LIABILITIES AND 50,000 * 27,300 14,200 5,000 14,400 ** ------ STOCKHOLDERS EQUITY $. 599.000 $ 601,000 * - The rules of Section 263A of the Internal Revenue Code do not apply to the corporation. ** - Includes S10,000 allocated to Land. *- Based upon Straight-Line Depreciation, a useful life of five (5) years and no salvage value for all assets (see specific assets below).** - Holloway And Forow Enterprises, Inc. Is The Designated Beneficiary. The Ilolloway And Eomow Enterprises, Inc. owns the following depreciable assets: ASSET DESCRIPTION Automobile - 2018 Lexus 460 (Five-year Property) Automobile – 2018 Cadillac Seville (Five-year Property) Furniture And Fixtures (Seven-year Property) DATE ACQUIRED April 1, 2018 ORIGINAL COST $ 50,000 FACTS Viola Ilolloway and Renee Forrow are the sole equal shareholders in the corporation of IHolloway And Forrow Enterprises, Inc. The corporation, which is a retail office supplies and stationery store, began its operations on January 2, 1985 (also date of incorporation). For Federal Income Tax purposes, the corporation is a calendar year taxpayer and uses the Accrual Method Of Accounting. Viola Holloway is the president of the corporation and its contact person for Federal Income Tax purposcs and Rence Forrow is the socretary and treasurer of the corporation. Both are full-time ermployees of the corporation devoting one hundred percent (100%) of their time to the business and each has an annual salary of $75,000. Viola Holloway's social security number is 678-90-1234 Renee Eorrow has social security number of 789-01-2345 and her address is 1606 Natalic Court Ilouston, Texas 77089-4637. FINANCIAL INFORMATION During the year of 2019, Holloway And Egrow, Enterpriscs, Inc. reported the following Income and Expenses (including necessary accruals) for Financial Accounting purposes: April 1, 2018 50,000 May 1, 2017 150,000 Each automobile was used a total of 18,000 miles during the year of 2019 all which were business miles. The automobiles were not available for personal use during off-duty hours and were used solely by Viola Holloway and Rence Forrow, who both have another vchicle available for personal use. For Federal Income Tax purposes, all of these assets are depreciated using the Modified Accelerated Cost Recovery System (MACRS). Section 179 Deduction was not elected in regards to any of these assets nor was Straight-Line Depreciation used. BALANCE SIIEETS The Balance Sheets (Financial Accounting) for the Holloway And Forrow Enterprises, Inc, at the beginning and cnding of the ycar of 2019 arc as follows: ASSETS Cash Trade Notes And Accounts Roccivable Inventory (Valued At Cost)* Marketable Securities - Long Term Depreciable Assets (And Land) Less: Accumulated Depreciation Other Assets (Deposits) Gross Reccipts Sales Retums And Allowances Purchases $1,482,000 109,000 510,000 Dividends Reccived Ermm Stock (Not Qualificd Dividends) January 1 S16,000 96,000 120,000 140,000 200.00K) ** 165,000) 12,000 December 31 $ 84,000 90,000 100,000 170,000 260,000 ** (115,000) 12,000 Investments In Less Than twenty percent (20%) Owned United States (U. S.) Corporation Interest Income: 80,000 Taxable Interest 18,000 7,200 150,(KX) 108,000 19,300 Тах-Еxermpt Interest Salarics: Officers Other Employees Repairs And Maintenance $ 599,000 $ 601,000 TOTAL ASSETS Rent Expense - Office Rent Expense - Equipment Payroll Taxes (Federal And State) Interest Expense Advertising Expense Charitable Contributions Legal And Professional Fees Depreciation Expense Utilities Expense Employee's Health Insurance Premiums Meals Eor Clients Officers' Life Insurance Premiums 84,000 15,500 19,600 25,200 33,500 48,000 18,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable (Non Recourse) Federal Income Taxes Payable Notes Payable - Short Tem (Recourse) Notes Puyable - Long Term (Recourse) S 96,000 8,600 16,000 164,000 10,000 304,400 $ 70,400 24,000 212,000 10,000 279,890 Common Stock Retained Earnings (Unappropriated) TOTAL LIABILITIES AND 50,000 * 27,300 14,200 5,000 14,400 ** ------ STOCKHOLDERS EQUITY $. 599.000 $ 601,000 * - The rules of Section 263A of the Internal Revenue Code do not apply to the corporation. ** - Includes S10,000 allocated to Land. *- Based upon Straight-Line Depreciation, a useful life of five (5) years and no salvage value for all assets (see specific assets below).** - Holloway And Forow Enterprises, Inc. Is The Designated Beneficiary.

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Viola Holloway and Renee Forrow are the sole equal partners in the general partnership of Holloway And Forrow Enterprises The partnership which is a retail office supplies and stationery store began i... View the full answer