Form 5452 - Corporate Report Of Nondividend Distributions 1994 Page 3
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Form 5452 (Rev. 12-94)
Page
Example of a Worksheet for Figuring Current-Year Earnings and Profits
XYZ Corporation, EIN 00-0000000
123 Main Street
Anycity, Yourstate 20200
Accumulated
Date Incorporated: 1/1/80
Retained Earnings
Earnings and Profits
Earnings and
Shown in Books
Current Year
Profits
Key
Method of Accounting: Accrual
Credit
Debit
Credit
Debit
Credit
Balance
$225,000
$20,900
Balance forward 12/31/93
1994
1
Taxable income from Form 1120, line 28 (or
214,700
$214,700
comparable line of other income tax return)
a
$60,000
$60,000
2
Federal income taxes per books and tax return
a
3,600
3,600
3
Excess of capital losses over capital gains (tax basis)
a
4
Depreciation adjustment on earnings and profits
24,000
(section 312(k))
4,000
5
Depreciation adjustment on sale of property
11,050
6
Total itemized expenses from line 5, Schedule M-1
$200
200
a
Travel and entertainment
a
b
Life
insurance
premium
greater
than
cash
9,500
9,500
surrender value (CSV)
a
850
850
c
Nondeductible interest paid for tax-exempt bonds
a
500
500
d
Contributions carryover
a
e
Other (list separately)
14,500
7
Total itemized income from line 7, Schedule M-1
6,000
6,000
a
Life insurance proceeds greater than CSV
a
b
Bad debt recovery (not charged against taxable
3,500
income)
b
5,000
5,000
c
Tax-exempt interest on municipal bonds
a
d
Other (list separately)
8
Refund of prior year Federal income taxes
10,000
9
c
Reserve for contingencies
Additional adjustments:
10
78,650
249,700
11
Totals
171,050
Current-Year Earnings and Profits
Cash Distributions:
40,000
40,000
Preferred stock: 3/15/94, 6/15/94, 9/15/94, 12/15/94
a
10,000 Shares at $1.00/Share = $40,000
Common stock:
1. 3/31/94 - 90,000 Shares at $1.00 = $90,000
72.81%
65,525
65,525
From current-year earnings and profits
a
23.22%
20,900
(20,900)
From accumulated earnings and profits
a
96.03%
86,425
Total distribution from earnings and profits
3.97%
3,575
From other distribution
100%
90,000
Total distribution
2. 9/30/94 - 90,000 Shares at $1.00 = $90,000
72.81%
65,525
65,525
From current-year earnings and profits
a
27.19%
24,475
From other distribution
100%
90,000
Total distribution
220,000
Total cash distributions
304,650
229,200
171,050
171,050
Totals
75,450
(20,900)
Current-year change
Balance forward 12/31/94
$149,550
$—0—
Explanation of Key
a - Identical items on the same line.
b - Item offset in 1992. Bad debt reserve method used for book accounting.
c - Item partially offset.
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