THE MUSICAL CORPORATION

Transcription

1 A Sign Here 112 Form Department of the Treasury Internal Revenue Service Check if: Paid Preparer Use Only U.S. Corporation Income Tax Return 215 1a Consolidated return TYPE Numer, street, and room or suite no. If a P.O. ox, see instructions. C Date incorporated (attach Form 851) Life/nonlife consolidated return OR Personal holding co. PRINT D Total assets (see instructions) (attach Sch. PH). 353 HARMONICA ST 3 Personal service corp. City or town, state, or province, country and ZIP or foreign postal code (see instructions). 4 Schedule M-3 attached NEW YORK NY 121 $ E Check if: (1) Initial return (2) Final return (3) Name change (4) Address change 1a Gross receipts or sales 1a 19, Returns and allowances 1 9, c Balance. Sutract line 1 from line 1a 1c 181, 2 Cost of goods sold (attach Form 1125-A). 2 5, 3 Gross profit. Sutract line 2 from line 1c. 3 16, 4 Dividends (Schedule C, line 19) 4 5 Interest 5 6 Gross rents 6 Gross royalties. 8 Capital gain net income (attach Schedule D (Form 112)) 8 9 Net gain or (loss) from Form 49, Part II, line 1 (attach Form 49) 9 1 Other income (see instructions - attach statement) Total income. Add lines 3 through , 12 Compensation of officers (see instructions - attach Form 1125-E) 12 5, 13 Salaries and wages (less employment credits) , Repairs and maintenance. 5, 15 Bad dets 15 3, 16 Rents 16 1 Taxes and licenses Interest Charitale contriutions 19 2 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562). 2, Depletion Advertising 22 2, 23 Pension, profit-sharing, etc., plans Employee enefit programs Domestic production activities deduction (attach Form 893) Other deductions (attach statement). Statement # ,3 2 Total deductions. Add lines 12 through , Taxale income efore net operating loss deduction and special deductions. Sutract line 2 from line ,466 29a Net operating loss deduction (see instructions) 29a Special deductions (Schedule C, line 2) 29 c Add lines 29a and c 3 Taxale income. Sutract line 29c from line 28 (see instructions). 3 51, Total tax (Schedule J, Part I, line 11). 31,86 32 Total payments and refundale credits (Schedule J, Part II, line 21) Estimated tax penalty (see instructions). Check if Form 222 is attached Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed. 34,86 35 Overpayment. If line 32 is larger than the total of lines 31 and 33, enter amount overpaid Enter amount from line 35 you want: Credited to 216 estimated tax Refunded 36 Tax, Refundale Credits, & Income Deductions (See instructions for limitations on deductions.) Payments For calendar year 215 or tax year eginning, 215, ending, 2 Information aout Form 112 and its separate instructions is at Name B Employer identification numer Franklin NC 2834 (828) For Paperwork Reduction Act Notice, see separate instructions. OMB No THE MUSICAL CORPORATION Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the est of my knowledge and elief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is ased on all information of which preparer has any knowledge. May the IRS discuss this return BONGO DRUM PRESIDENT with the preparer shown elow Signature of officer Date Title (see instructions)? Yes Print/Type preparer's name Preparer's signature Date Check if PTIN Preparer One Preparer One self-employed P Firm's name The Tax Firm Firm's EIN Firm's address Prep Lane Phone no. No Form 112 (215)

2 Form 112 (215) Page 2 Schedule C Dividends and Special Deductions (see instructions) Dividends from less-than-2%-owned domestic corporations (other than det-financed stock) Dividends from 2%-or-more-owned domestic corporations (other than det-financed stock) 8 Dividends on det-financed stock of domestic and foreign corporations Dividends on certain preferred stock of less-than-2%-owned pulic utilities 42 Dividends on certain preferred stock of 2%-or-more-owned pulic utilities 48 Dividends from less-than-2%-owned foreign corporations and certain FSCs Dividends from 2%-or-more-owned foreign corporations and certain FSCs 8 Dividends from wholly owned foreign susidiaries 1 Total. Add lines 1 through 8. See instructions for limitation Dividends from domestic corporations received y a small usiness investment company operating under the Small Business Investment Act of Dividends from affiliated group memers 1 Dividends from certain FSCs 1 Dividends from foreign corporations not included on lines 3, 6,, 8, 11, or 12 Income from controlled foreign corporations under supart F (attach Form(s) 541) Foreign dividend gross-up IC-DISC and former DISC dividends not included on lines 1, 2, or 3 Other dividends THE MUSICAL CORPORATION Deduction for dividends paid on certain preferred stock of pulic utilities Total dividends. Add lines 1 through 1. Enter here and on page 1, line 4.. Total special deductions. Add lines 9, 1, 11, 12, and 18. Enter here and on page 1, line 29 (a) Dividends received () % see instructions (c) Special deductions (a) x () Form 112 (215)

3 THE MUSICAL CORPORATION Form 112 (215) Page 3 Schedule J Tax Computation and Payment (see instructions) Part I - Tax Computation 1 Check if the corporation is a memer of a controlled group (attach Schedule O (Form 112)). 2 Income tax. Check if a qualified personal service corporation (see instructions). 2,86 3 Alternative minimum tax (attach Form 4626). 3 4 Add lines 2 and 3. 4,86 5a Foreign tax credit (attach Form 1118) 5a Credit from Form 8834 (see instructions). 5 c General usiness credit (attach Form 38) 5c d Credit for prior year minimum tax (attach Form 882) 5d e Bond credits from Form e 6 Total credits. Add lines 5a through 5e 6 Sutract line 6 from line 4,86 8 Personal holding company tax (attach Schedule PH (Form 112)) 8 9a Recapture of investment credit (attach Form 4255) 9a Recapture of low-income housing credit (attach Form 8611). 9 c Interest due under the look-ack method - completed long-term contracts (attach Form 869) 9c d Interest due under the look-ack method - income forecast method (attach Form 8866) 9d e Alternative tax on qualifying shipping activities (attach Form 892) 9e f Other (see instructions - attach statement) 9f 1 Total. Add lines 9a through 9f Total tax. Add lines, 8, and 1. Enter here and on page 1, line 31 11,86 Part II - Payments and Refundale Credits 12 2 overpayment credited to estimated tax payments refund applied for on Form 4466 ( ) 15 Comine lines 12, 13, and Tax deposited with Form Withholding (see instructions) 1 18 Total payments. Add lines 15, 16, and Refundale credits from: a Form a Form c Form 882, line 8c 19c d Other (attach statement - see instructions) 19d 2 Total credits. Add lines 19a through 19d Total payments and credits. Add lines 18 and 2. Enter here and on page 1, line Schedule K Other Information (see instructions) 1 Check accounting method: a Cash Accrual c Other (specify) 2 See the instructions and enter the: a Business activity code no. 451 c Business activity Product or service INSTRUMENT STORE INSTRUMENTS 3 Is the corporation a susidiary in an affiliated group or a parent-susidiary controlled group? If "Yes," enter name and EIN of the parent corporation. Yes No 4 a 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 2% or more, or own, directly or indirectly, 5% 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 112) (attach Schedule G) Did any individual or estate own directly 2% or more, or own, directly or indirectly, 5% 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 112) (attach Schedule G) Form 112 (215)

4 THE MUSICAL CORPORATION Form 112 (215) Page 4 Schedule K Other Information continued (see instructions) Yes 5 At the end of the tax year, did the corporation: a Own directly 2% or more, or own, directly or indirectly, 5% 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) elow. (ii) Employer (iii) Country of (iv) Percentage (i) Name of Corporation Identification Numer Incorporation Owned in Voting (if any) Stock No Own directly an interest of 2% or more, or own, directly or indirectly, an interest of 5% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the eneficial interest of a trust? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (iv) elow. (ii) Employer (iii) Country of (iv) Maximum (i) Name of Entity Identification Numer Organization Percentage Owned in (if any) Profit, Loss, or Capital a During this tax year, did the corporation pay dividends (other than stock dividends and distriutions in exchange for stock) in excess of the corporation's current and accumulated earnings and profits? (See sections 31 and 316.) If "Yes," file Form 5452, Corporate Report of Nondividend Distriutions. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each susidiary. 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 () the total value of all classes of the corporation's stock? For rules of attriution, see section 318. If "Yes," enter: (i) Percentage owned and (ii) Owner's country (c) The corporation may have to file Form 542, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the numer of Forms 542 attached Check this ox if the corporation issued pulicly offered det instruments with original issue discount If checked, the corporation may have to file Form 8281, Information Return for Pulicly Offered Original Issue Discount Instruments. Enter the amount of tax-exempt interest received or accrued during the tax year $ Enter the numer of shareholders at the end of the tax year (if 1 or fewer) If the corporation has an NOL for the tax year and is electing to forego the carryack period, check here If the corporation is filing a consolidated return, the statement required y Regulations section ()(3) must e attached or the election will not e valid. Enter the availale NOL carryover from prior tax years (do not reduce it y any deduction on line 29a.) $ Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 1) for the tax year and its total assets at the end of the tax year less than $25,? If "Yes," the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distriutions and the ook value of property distriutions (other than cash) made during the tax year $ Is the corporation required to file Schedule UTP (Form 112), Uncertain Tax Position Statement (see instructions)? If "Yes," complete and attach Schedule UTP. Did the corporation make any payments in 215 that would require it to file Form(s) 199? If "Yes," did or will the corporation file required Forms 199? During this tax year, did the corporation have an 8% or more change in ownership, including a change due to redemption of its own stock? During or susequent to this tax year, ut efore the filing of this return, did the corporation dispose of more than 65% (y value) of its assets in a taxale, non-taxale, 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 asis or fair market value of more than $1 million?..... Form 112 (215)

5 Schedule L THE MUSICAL CORPORATION Balance Sheets per Books Assets Beginning of tax year End of tax year Form 112 (215) Page 5 Liailities and Shareholders' Equity Schedule M-1 (a) () (c) (d) 1 Cash 2a Trade notes and accounts receivale Less allowance for ad dets. ( ) ( ) 3 Inventories 4 U.S. government oligations. 5 Tax-exempt securities (see instructions). 6 Other current assets (attach statement). Loans to shareholders. 8 Mortgage and real estate loans 9 Other investments (attach statement) 1 a Buildings and other depreciale assets. Less accumulated depreciation ( ) ( ) 11 a Depletale assets. Less accumulated depletion ( ) ( ) 12 Land (net of any amortization) 13 a Intangile assets (amortizale only) Less accumulated amortization ( ) ( ) Other assets (attach statement) 15 Total assets Accounts payale Mortgages, notes, onds payale in less than 1 year Other current liailities (attach statement) Loans from shareholders Mortgages, notes, onds payale in 1 year or more Other liailities (attach statement) Capital stock: a Preferred stock Common stock Additional paid-in capital Retained earnings-appropriated (attach statement) Retained earnings-unappropriated.... Adjustments to shareholders' equity (attach statement) Less cost of treasury stock ( ) ( ) Total liailities and shareholders' equity. Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may e required to file Schedule M-3 (see instructions).. 1 Net income (loss) per ooks Income recorded on ooks this year 2 Federal income tax per ooks. not included on this return (itemize): 3 Excess of capital losses over capital gains Tax-exempt interest $ 4 Income suject to tax not recorded on ooks this year (itemize): 8 Deductions on this return not charged 5 Expenses recorded on ooks this year not against ook income this year (itemize): deducted on this return (itemize): a Depreciation $ a Depreciation $ Charitale contriutions $ c Charitale contriutions Travel and entertainment $ $ 9 Add lines and 8 6 Add lines 1 through 5 1 Income (page 1, line 28)-line 6 less line 9 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 1 Balance at eginning of year 5 Distriutions: a Cash 2 Net income (loss) per ooks Stock 3 Other increases (itemize): c Property 4 Add lines 1, 2, and 3 8 Balance at end of year (line 4 less line ). 6 Other decreases (itemize): Add lines 5 and 6 Form 112 (215)

6 Form 4626 Department of the Treasury Internal Revenue Service Name Alternative Minimum Tax - Corporations Attach to the corporation's tax return. Information aout Form 4626 and its separate instructions is at Note: See the instructions to find out if the corporation is a small corporation exempt from the alternative minimum tax (AMT) under section 55(e). Employer identification numer THE MUSICAL CORPORATION Taxale income or (loss) efore net operating loss deduction 1 OMB No ,466 2 Adjustments and preferences: a Depreciation of post-1986 property 2a Amortization of certified pollution control facilities. 2 c Amortization of mining exploration and development costs 2c d Amortization of circulation expenditures (personal holding companies only) 2d e Adjusted gain or loss 2e f Long-term contracts 2f g Merchant marine capital construction funds. 2g h Section 833() deduction (Blue Cross, Blue Shield, and similar type organizations only) 2h i Tax shelter farm activities (personal service corporations only) 2i j Passive activities (closely held corporations and personal service corporations only). 2j k Loss limitations 2k l Depletion. 2l m Tax-exempt interest income from specified private activity onds 2m n Intangile drilling costs. 2n o Other adjustments and preferences 2o 3 Pre-adjustment alternative minimum taxale income (AMTI). Comine lines 1 through 2o 3 4 Adjusted current earnings (ACE) adjustment: a ACE from line 1 of the ACE worksheet in the instructions. 4a 49,168 Sutract line 3 from line 4a. If line 3 exceeds line 4a, enter the difference as a negative amount (see instructions) 4 c Multiply line 4 y 5% (.5). Enter the result as a positive amount. 4c d Enter the excess, if any, of the corporation's total increases in AMTI from prior year ACE adjustments over its total reductions in AMTI from prior year ACE adjustments (see instructions). Note: You must enter an amount on line 4d (even if line 4 is positive). 4d e ACE adjustment. If line 4 is zero or more, enter the amount from line 4c 4e } If line 4 is less than zero, enter the smaller of line 4c or line 4d as a negative amount 5 Comine lines 3 and 4e. If zero or less, stop here; the corporation does not owe any AMT. 5 6 Alternative tax net operating loss deduction (see instructions) 6 (2,298) 49,168 49,168 Alternative minimum taxale income. Sutract line 6 from line 5. If the corporation held a residual interest in a REMIC, see instructions 49,168 8 Exemption phase-out (if line is $31, or more, skip lines 8a and 8 and enter -- on line 8c): a Sutract $15, from line (if completing this line for a memer of a controlled group, see instructions). If zero or less, enter -- 8a Multiply line 8a y 25% (.25) 8 c Exemption. Sutract line 8 from $4, (if completing this line for a memer of a controlled group, 9 Sutract line 8c from line. If zero or less, enter Multiply line 9 y 2% (.2) 1 11 Alternative minimum tax foreign tax credit (AMTFTC) (see instructions) Tentative minimum tax. Sutract line 11 from line Regular tax liaility efore applying all credits except the foreign tax credit 13 see instructions). If zero or less, enter Alternative minimum tax. Sutract line 13 from line 12. If zero or less, enter --. Enter here and on Form 112, Schedule J, line 3, or the appropriate line of the corporation's income tax return For Paperwork Reduction Act Notice, see separate instructions. 8c 4, 9,168 1,834 1,834,86 Form 4626 (215)

7 Form 1125-A Cost of Goods Sold (Rev. Decemer 212) Department of the Treasury Internal Revenue Service Name Attach to Form 112, 112-C, 112-F, 112S, 165, or 165-B. Information aout Form 1125-A and its instructions is at OMB No Employer identification numer THE MUSICAL CORPORATION ,, 1 Inventory at eginning of year 1 2 Purchases 2 3 Cost of laor 3 4 Additional section 263A costs (attach schedule) 4 5 Other costs (attach schedule). 5 6 Total. Add lines 1 through , Inventory at end of year, 8 Cost of goods sold. Sutract line from line 6. Enter here and on Form 112, page 1, line 2 or the appropriate line of your tax return (see instructions) 8 5, 9a Check all methods used for valuing closing inventory: (i) Cost (ii) Lower of cost or market (iii) Other (Specify method used and attach explanation.) Check if there was a writedown of sunormal goods c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 9) d If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO 9d e If property is produced or acquired for resale, do the rules of section 263A apply to the entity (see instructions)? Yes No f Was there any change in determining quantities, cost, or valuations etween opening and closing inventory? If "Yes," attach explanation. Yes No For Paperwork Reduction Act Notice, see instructions Form 1125-A (Rev )

8 Form 4562 Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Information aout Form 4562 and its separate instructions is at Business or activity to which this form relates 215 THE MUSICAL CORPORATION FORM Part I Election To Expense Certain Property Under Section 19 Note: If you have any listed property, complete Part V efore you complete Part I. 1 Maximum amount (see instructions) 1 2 Total cost of section 19 property placed in service (see instructions). 2 3 Threshold cost of section 19 property efore reduction in limitation (see instructions) 3 4 Reduction in limitation. Sutract line 3 from line 2. If zero or less, enter Dollar limitation for tax year. Sutract line 4 from line 1. If zero or less, enter --. If married filing separately, see instructions 5 6 (a) Description of property () Cost (usiness use only) (c) Elected cost OMB No Attachment Sequence No. Identifying numer 19 Listed property. Enter the amount from line 29 8 Total elected cost of section 19 property. Add amounts in column (c), lines 6 and 8 9 Tentative deduction. Enter the smaller of line 5 or line Carryover of disallowed deduction from line 13 of your 2 Form Business income limitation. Enter the smaller of usiness income (not less than zero) or line 5 (see instructions) Section 19 expense deduction. Add lines 9 and 1, ut do not enter more than line Carryover of disallowed deduction to 216. Add lines 9 and 1, less line Note: Do not use Part II or Part III elow for listed property. Instead, use Part V. Part II Part III Part IV Special Depreciation Allowance and Other Depreciation 15 Property suject to section 168(f)(1) election Other depreciation (including ACRS) 16 MACRS Depreciation Summary Section A 1 MACRS deductions for assets placed in service in tax years eginning efore a c d e f g h i 2a c 21 Listed property. Enter amount from line Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) For Paperwork Reduction Act Notice, see separate instructions. (Do not include listed property.) (See instructions.) If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here (Do not include listed property.) (See instructions.) Section B - Assets Placed in Service During 215 Tax Year Using the General Depreciation System () Month and year (c) Basis for depreciation (d) Recovery (a) Classification of property placed in (usiness/investment use (e) Convention (f) Method (g) Depreciation deduction service only-see instructions) period 3-year property 5-year property -year property 1-year property 15-year property 2-year property 25-year property 25 yrs. S/L Residential rental 2.5 yrs. MM S/L property 2.5 yrs. MM S/L Nonresidential real 39 yrs. MM S/L property MM S/L Section C - Assets Placed in Service During 215 Tax Year Using the Alternative Depreciation System Class life S/L 12-year 12 yrs. S/L 4-year 4 yrs. MM S/L (See instructions.) Total. Add amounts from line 12, lines through 1, lines 19 and 2 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations - see instructions For assets shown aove and placed in service during the current year, enter the portion of the asis attriutale to section 263A costs ,996 1,238, Form 4562 (215)

9 Form 4562 (215) Page 2 Part V Listed Property (Include automoiles, certain other vehicles, certain aircraft, certain computers, and property used for entertainment, recreation, or amusement.) 24a Do you have evidence to support the usiness/investment use claimed? Yes No 24 If "Yes," is the evidence written? Yes No Add amounts in column (h), lines 25 through 2. Enter here and on line 21, page Add amounts in column (i), line 26. Enter here and on line, page 1 29 Section B - Information on Use of Vehicles 34 Was the vehicle availale for personal Yes No Yes No Yes No Yes No Yes No Yes No use during off-duty hours? 35 Was the vehicle used primarily y a more than 5% owner or related person? 36 Is another vehicle availale for personal use? Section C - Questions for Employers Who Provide Vehicles for Use y Their Employees 3 Do you maintain a written policy statement that prohiits all personal use of vehicles, including commuting, y Yes No your employees?. 38 Do you maintain a written policy statement that prohiits personal use of vehicles, except commuting, y your employees? See the instructions for vehicles used y corporate officers, directors, or 1% or more owners 39 Do you treat all use of vehicles y employees as personal use?. 4 Do you provide more than five vehicles to your employees, otain information from your employees aout the use of the vehicles, and retain the information received? 41 Do you meet the requirements concerning qualified automoile demonstration use? (See instructions.) Note: If your answer to 3, 38, 39, 4, or 41 is "Yes," do not complete Section B for the covered vehicles. Part VI THE MUSICAL CORPORATION Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24, columns (a) through (c) of Section A, all of Section B, and Section C if applicale. Section A - Depreciation and Other Information (Caution: See the instructions for limits for passenger automoiles.) (c) (e) (i) (a) () (d) (f) (g) (h) Business/ Basis for depreciation Type of property (list Date placed Cost or other asis Recovery Method/ Depreciation Elected section 19 investment use (usiness/investment vehicles first) in service period Convention deduction cost percentage use only) Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 5% in a qualified usiness use (see instructions) Property used more than 5% in a qualified usiness use: % % % Property used 5% or less in a qualified usiness use: % S/L- % S/L- % S/L- Complete this section for vehicles used y a sole proprietor, partner, or other "more than 5% owner," or related person. If you provided vehicles to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles. 3 Total usiness/investment miles driven during the year (do not include commuting miles) 31 Total commuting miles driven during the year 32 Total other personal (noncommuting) miles driven 33 Total miles driven during the year. Add lines 3 through 32 Answer these questions to determine if you meet an exception to completing Section B for vehicles used y employees who are not more than 5% owners or related persons (see instructions). Amortization TRUCK ,5 21,5 5 2 DB-HY 1,238.. (a) () (c) (d) (e) (f) Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle , () (c) (d) (e) (f) (a) Amortization Date amortization Amortizale amount Code section Amortization for this year Description of costs period or egins percentage Amortization of costs that egins during your 215 tax year (see instructions): 43 Amortization of costs that egan efore your 215 tax year Total. Add amounts in column (f). See the instructions for where to report 44. Form 4562 (215)