Can You Help Me Do a Schedule M-3 for a Corporation? I Found a Sample 1120 for a Corporation

can you help me do a schedule m-3 for a corporation? I found a sample 1120 for a corporation on here such as alvin's music Inc TRP_3_c_corp_tax_return_Alvins_music_042710 I know this corporation does not need an M_# but I am taking a tax test for the IRS in two weeks and I need to know how to do the m-3 form I corrected mistakes in their form 1120 1120

Form Department of the Treasury Internal Revenue Service A Check if: 1a Consolidated return (attach Form 851)

. b Life/nonlife consolidated return .

2 Personal holding co. (attach Sch. PH) .

U.S. Corporation Income Tax Return

For calendar year 2009 or tax year beginning

(see instructions) .

See separate instructions.

B Employer identification number

Use IRS Alvin's Music Incorporated label. Number, street, and room or suite no. If a P.O. box, see instructions. Otherwise, 355 Music Way print or City or town, state, and ZIP code type.

3 Personal service corp. 4 Schedule M-3 attached

OMB No. 1545-0123

, 2009, ending

29-5748859 C Date incorporated

6/12/2006 D Total assets (see instructions)

East Palo Alto, CA 94303 E Check if: (1)

Final return

Address change

3,380,000

Cost of goods sold (Schedule A, line 8) . Gross profit. Subtract line 2 from line 1c . Dividends (Schedule C, line 19) ...

......

834,000 2,546,000 12,000

Interest . Gross rents

. . . .

7 8 9 10 11

Gross royalties ...... Capital gain net income (attach Schedule D (Form 1120)) . . . . Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (see instructions—attach schedule) ...... Total income. Add lines 3 through 10 ......

. . . . .

......

. . . . .

. . . . 5 6 7 8 9 10

3,000 4,000

Compensation of officers (Schedule E, line 4)

2,574,000 600,000 700,000

14 15 16

Salaries and wages (less employment credits) Repairs and maintenance ...... Bad debts ...... Rents ......

11 12 13

......

14 15 16

5,000 10,000

17 18 19

Taxes and licenses . . Interest ..... Charitable contributions .

......

17 18 19

161,000 62,000 27,000

Depreciation from Form 4562 not claimed on Schedule A or elsewhere on return (attach Form 4562) Depletion ......

31,000

22 23 24 25

Advertising ...... Pension, profit-sharing, etc., plans ...... Employee benefit programs ...... Domestic production activities deduction (attach Form 8903)

. . . .

......

. . . .

......

. . . .

20 21 22 23 24 25

40,000

26 27 28

Other deductions (attach schedule) . . . Total deductions. Add lines 12 through 26 .

75,500 1,755,500 818,500

Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11 . Less: a Net operating loss deduction (see instructions) ...... 29a b Special deductions (Schedule C, line 20) ...... 8,400 29b

26 27 28

Taxable income. Subtract line 29c from line 28 (see instructions)

29c 30

810,100

31 32a b Total tax (Schedule J, line 10) .

274,434

) d Bal ...

32g Refundable credits from Form 3800, line 19c, and Form 8827, line 8c . . . Estimated tax penalty (see instructions). Check if Form 2220 is attached ..... Amount owed. If line 32h is smaller than the total of lines 31 and 33, enter amount owed

. . . .

32h 33 34

280,000

Overpayment. If line 32h is larger than the total of lines 31 and 33, enter amount overpaid .

.... Refunded

5,566 5,566

Income

1a 2 3 4

Deductions (See instructions for limitations on deductions.) b Less returns and allowances

5,550,000

Name change

Tax, Refundable Credits, and Payments Gross receipts or sales

Initial return c e f g 33 34 35 36

Sign Here

3,420,000

. . . . .

2008 overpayment credited to 2009 2009 estimated tax payments . .

2009 refund applied for on Form 4466 .

Tax deposited with Form 7004 . Credits: (1) Form 2439

32a 32b

. c Bal

44,000

280,000

..... (2) Form 4136

Enter amount from line 35 you want: Credited to 2010 estimated tax

32d 32e 32f

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. May the IRS discuss this return with the preparer shown below (see instructions)? No Yes

Signature of officer

Paid Preparer’s Use Only

40,000

Preparer’s signature

Date Firm’s name (or yours if self-employed), address, and ZIP code

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Check if selfemployed

Preparer’s SSN or PTIN

EIN Phone no. Cat. No. 11450Q

Form 1120 (2009)

Schedule A

Cost of Goods Sold (see instructions)

Inventory at beginning of year Purchases ...... Cost of labor . . . . .

......

Additional section 263A costs (attach schedule) . Other costs (attach schedule) ...... Total. Add lines 1 through 5 ......

2,534,000

7 8 9a

Inventory at end of year ...... Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2 .

. . . .

1,700,000 834,000

1,400,000 1,134,000

Check all methods used for valuing closing inventory: (i) Cost (ii) (iii)

Lower of cost or market Other (Specify method used and attach explanation.) b c

Check if there was a writedown of subnormal goods ...... Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970)

If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing inventory computed under LIFO ...... If property is produced or acquired for resale, do the rules of section 263A apply to the corporation? .

Dividends and Special Deductions (see instructions)

(a) Dividends received

Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock) ......

Dividends on certain preferred stock of 20%-or-more-owned public utilities . Dividends from less-than-20%-owned foreign corporations and certain FSCs Dividends from 20%-or-more-owned foreign corporations and certain FSCs

Dividends from wholly owned foreign subsidiaries . . . Total. Add lines 1 through 8. See instructions for limitation

Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock) ...... Dividends on debt-financed stock of domestic and foreign corporations . . . . . Dividends on certain preferred stock of less-than-20%-owned public utilities . . .

(c) Special deductions (a) (b)

80 see instructions

42 48 70 80 100

11 12 13 14 15

Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12 . . Income from controlled foreign corporations under subpart F (attach Form(s) 5471) Foreign dividend gross-up ......

16 17 18

IC-DISC and former DISC dividends not included on lines 1, 2, or 3 ...... Other dividends ...... Deduction for dividends paid on certain preferred stock of public utilities .... Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 . . . Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b .

Schedule E

12,000

Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 . . . . . Dividends from affiliated group members ...... Dividends from certain FSCs ......

Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If “Yes,” attach explanation ......

Schedule C

8 9 10

100 100 100

12,000 .

Compensation of Officers (see instructions for page 1, line 12) Note: Complete Schedule E only if total receipts (line 1a plus lines 4 through 10 on page 1) are $500,000 or more. (a) Name of officer

(c) Percent of Percent of corporation stock owned time devoted to (d) Common (e) Preferred business

(b) Social security number

1 Alvin Jones Theona Smith Gwen Givens Carlson Bannister

100 % 100 % 100 % 100 % %

123-45-6789 978-65-4321 789-12-3456 321-54-6789

(f) Amount of compensation

60 % 40 % %

210,000 190,000 110,000

90,000

Total compensation of officers .

Compensation of officers claimed on Schedule A and elsewhere on return . Subtract line 3 from line 2. Enter the result here and on page 1, line 12 . .

600,000 600,000 Form

(2009)

Form 1120 (2009)

Schedule J

Tax Computation (see instructions)

Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)) . Income tax. Check if a qualified personal service corporation (see instructions) . . . . . Alternative minimum tax (attach Form 4626) ......

275,434

4 5a b

Add lines 2 and 3 ...... Foreign tax credit (attach Form 1118) . Credit from Form 8834, line 29 . . .

275,434 275,434

. . . c d

General business credit (attach Form 3800) . . . Credit for prior year minimum tax (attach Form 8827)

Bond credits from Form 8912 . . . Total credits. Add lines 5a through 5e

. . . .

Subtract line 6 from line 4

Personal holding company tax (attach Schedule PH (Form 1120)) . Other taxes. Check if from: Form 4255 Form 8611 Form 8866 Form 8902 Total tax. Add lines 7 through 9. Enter here and on page 1, line 31

...... Form 8697 Other (attach schedule) ......

6 7 8 9 10

Schedule K

.. 5a 5b 5c 5d 5e

Other Information (see instructions)

Check accounting method: a

275,434

Other (specify)

See the instructions and enter the: Business activity code no. Retail sales Business activity a b c

Product or service

Cash b

Accrual c

451140

Music-related products

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

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 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) . At the end of the tax year, 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 851, Affiliations Schedule? For rules of constructive ownership, see instructions

If “Yes,” complete (i) through (iv). (i) Name of Corporation

(ii) Employer Identification Number (if any)

(iii) Country of Incorporation

(iv) Percentage Owned in Voting Stock

(2009)

Form 1120 (2009)

Schedule K b

Continued

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). (i) Name of Entity

(ii) Employer Identification Number (if any)

(iv) Maximum Percentage Owned in Profit, Loss, or Capital

(iii) Country of Organization

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. 7

At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power of all classes of the corporation’s stock entitled to vote or (b) the total value of all classes of the corporation’s stock? ....

If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary.

For rules of attribution, see section 318. If “Yes,” enter: and (ii) Owner’s country (i) Percentage owned

8 9 10

(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. ckfor 5000here 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

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 on line 29a.) $ 13

Are the corporation’s total receipts (line 1a plus lines 4 through 10 on page 1) 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 on page 5. Instead, enter the total amount of cash $ distributions and the book value of property distributions (other than cash) made during the tax year. Form

(2009)

Form 1120 (2009)

Schedule L

Balance Sheets per Books

Beginning of tax year (a) (b)

Assets 1

2a b 3 4 Trade notes and accounts receivable Less allowance for bad debts . . Inventories ...... U.S. government obligations ..

. . . .

Tax-exempt securities (see instructions) Other current assets (attach schedule) . Loans to shareholders . . . . .

8 9 10a

Mortgage and real estate loans . . . Other investments (attach schedule) . Buildings and other depreciable assets

. . . b 11a b

Less accumulated depreciation . Depletable assets . . . . . Less accumulated depletion . .

12 13a

Land (net of any amortization) . . Intangible assets (amortizable only)

. . . .

Less accumulated amortization . Other assets (attach schedule) . Total assets ......

16 17 18

Accounts payable ...... Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach schedule) . .

19 20 21

Loans from shareholders ...... Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach schedule) . . . . Capital stock: a Preferred stock . . . . b Common stock . . . . b .

End of tax year (c)

240,000 (

600,000 35,000 )

1,500,000 200,000 )

171,000 700,000 40,000 ) 565,000 ( 1,400,000 50,000 140,000 300,000

1,300,000 (

1600000 216000 )

660,000 1,700,000 50,000 140,000 275,000

1,384,000

900,000 (

250,000 5,145,000

270,000 5,550,000

250,000

220,000

125,000 120,000

800,000 200,000

790,000 162,000

Liabilities and Shareholders’ Equity

Additional paid-in capital .

24 25 26 27 28

Less cost of treasury stock . . . . Total liabilities and shareholders’ equity

600,000

Retained earnings—Appropriated (attach schedule) Retained earnings—Unappropriated . . . Adjustments to shareholders’ equity (attach schedule)

Schedule M-1

. . 600,000

600,000

3,170,000 (

3,658,000

5,145,000 Reconciliation of Income (Loss) per Books With Income per Return

5,550,000

Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or more—see instructions 1

Net income (loss) per books .

Federal income tax per books .

Excess of capital losses over capital gains a b c

Deductions on this return not charged against book income this year (itemize): 11,000 a Depreciation . . $ b Charitable contributions $

Expenses recorded on books this year not deducted on this return (itemize): Depreciation . . . . $ Charitable contributions . $ 2,500 Travel and entertainment . $ Add lines 1 through 5 .

Schedule M-2 1 2 Income recorded on books this year not included on this return (itemize): 6,000 Tax-exempt interest $

Bad debt exp. 5,000; L.I. prem. 3,000 6

Income subject to tax not recorded on books this year (itemize):

Gain on disposition of fixed assets 5

568,000 260,000

Capital loss carryover 5,000

10,500 9 840,500 10

16,000 22,000 818,500

Add lines 7 and 8 ...... Income (page 1, line 28)—line 6 less line 9

Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L)

Balance at beginning of year Net income (loss) per books . Other increases (itemize):

Add lines 1, 2, and 3 .

3,170,000 568,000

3,738,000

5 6 7 8

Distributions: a Cash b Stock

. . c Property Other decreases (itemize):

80,000

Add lines 5 and 6 ...... Balance at end of year (line 4 less line 7)

80000 3,658,000

(2009)

SCHEDULE D (Form 1120) Department of the Treasury Internal Revenue Service Capital Gains and Losses

OMB No. 1545-0123

Attach to Form 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-IC-DISC, 1120-L, 1120-ND, 1120- PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-SF, or certain Forms 990-T.

See separate instructions.

Employer identification number

29-5748859

Alvin's Music Incorporated

Part I

Short-Term Capital Gains and Losses—Assets Held One Year or Less

(a) Description of property (Example: 100 shares of Z Co.)

(b) Date acquired (mo., day, yr.)

(c) Date sold (mo., day, yr.)

(e) Cost or other basis (see instructions)

(d) Sales price (see instructions)

(f) Gain or (loss) (Subtract (e) from (d))

1 2 3 4 5

Short-term capital gain from installment sales from Form 6252, line 26 or 37 .

Short-term gain or (loss) from like-kind exchanges from Form 8824 Unused capital loss carryover (attach computation) . . . . . Net short-term capital gain or (loss). Combine lines 1 through 4 .

Part II

4/24/2005

Enter gain from Form 4797, line 7 or 9 .

7/22/2009

. 33,000

25,000

Long-term capital gain from installment sales from Form 6252, line 26 or 37 .

Long-term gain or (loss) from like-kind exchanges from Form 8824 Capital gain distributions (see instructions) ...... Net long-term capital gain or (loss). Combine lines 6 through 10 .

Part III

Summary of Parts I and II

12 Enter excess of net short-term capital gain (line 5) over net long-term capital loss (line 11) . . . . 13 Net capital gain. Enter excess of net long-term capital gain (line 11) over net short-term capital loss (line 5) ...... 14 Add lines 12 and 13. Enter here and on Form 1120, page 1, line 8, or the proper line on other returns. If the corporation has qualified timber gain, also complete Part IV ...... Note. If losses exceed gains, see Capital losses in the instructions.

Part IV

2 3 4( 5

Long-Term Capital Gains and Losses—Assets Held More Than One Year

6 2,500 shares of Simon's sh. music

7 8 9 10 11

7 8 9 10 11 8,000

Alternative Tax for Corporations with Qualified Timber Gain. Complete Part IV only if the corporation has qualified timber gain under section 1201(b). Skip this part if you are filing Form 1120-RIC. See instructions.

15 Enter qualified timber gain (as defined in section 1201(b)(2)) . . . . 15 16 Enter taxable income from Form 1120, page 1, line 30, or the applicable 16 line of your tax return ...... 17 Enter the smallest of: (a) the amount on line 15; (b) the amount on line 16; 17 or (c) the amount on Part III, line 13 ...... 18 Multiply line 17 by 15% ...... 19 Subtract line 13 from line 16. If zero or less, enter -0- ...... 19 20 Enter the tax on line 19, figured using the Tax Rate Schedule (or applicable tax rate) appropriate for the return with which Schedule D (Form 1120) is being filed ...... 21 Add lines 17 and 19 ...... 21 22 Subtract line 21 from line 16. If zero or less, enter -0- ...... 22 23 Multiply line 22 by 35% ...... 24 Add lines 18, 20, and 23 ...... 25 Enter the tax on line 16, figured using the Tax Rate Schedule (or applicable tax rate) appropriate for the return with which Schedule D (Form 1120) is being filed ...... 26 Enter the smaller of line 24 or line 25. Also enter this amount on Form 1120, Schedule J, line 2, or the applicable line of your tax return ...... For Paperwork Reduction Act Notice, see the Instructions for Form 1120. Cat. No. 11460M

23 24 25 26 Schedule D (Form 1120) (2009)

SCHEDULE G (Form 1120)

Information on Certain Persons Owning the Corporation’s Voting Stock Attach to Form 1120. See instructions on page 2.

Department of the Treasury Internal Revenue Service

OMB No. 1545-0123

Employer identification number (EIN)

Alvin's Music Incorporated

Part I

(i) Name of Entity

Part II

5748859

Certain Entities Owning the Corporation’s Voting Stock. (Form 1120, Schedule K, Question 4a). Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization that owns directly 20% or more, or owns, directly or indirectly, 50% or more of the total voting power of all classes of the corporation’s stock entitled to vote (see instructions). (ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

(v) Percentage Owned in...