Instructions For Form 5452 - Corporate Report Of Nondividend Distributions Page 2
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1
2
33
Form 5452 (Rev. 10-2016)
Page
Example of a Filled-In Worksheet for Figuring Current Year Earnings and Profits
XYZ Corporation, EIN 00-0000000
123 Main Street
Anycity, Yourstate 20200
Accumulated
Date Incorporated:
Retained Earnings
Earnings and Profits
1/1/99
Earnings and
Shown in Books
Current Year
Key
Profits
Method of Accounting:
Accrual
Credit
Debit
Credit
Debit
Credit
Balance
Balance forward 12/31/
$225,000
$20,900
2015
Year
2016
1
Taxable income* from Form 1120, line 28 (or
comparable line of other income tax return) .
.
a
214,700
$214,700
2
Federal income taxes per books and tax return
$60,000
$60,000
a
3
Excess of capital losses over capital gains (tax basis)
3,600
3.600
a
4
Depreciation adjustment on earnings and profits
(section 312(k)) .
.
.
.
.
.
.
.
.
.
.
24,000
5
Depreciation adjustment on sale of property
.
4,000
6
Total itemized expenses from line 5, Schedule M-1
11,050
a Travel and entertainment .
.
.
.
.
.
.
.
$200
200
a
b Life insurance premium greater
than
cash
surrender value (CSV) .
.
.
.
.
.
.
.
.
9,500
9,500
a
c Nondeductible interest paid for tax-exempt bonds
850
850
a
d Contributions carryover .
.
.
.
.
.
.
.
500
500
a
e Other (list separately) .
.
.
.
.
.
.
.
.
7
Total itemized income from line 7, Schedule M-1
14,500
a Life insurance proceeds greater than CSV .
.
6,000
6,000
a
b Bad debt recovery (not charged against taxable
income)
.
.
.
.
.
.
.
.
.
.
.
.
.
3,500
b
SAMPLE
c Tax-exempt interest on municipal bonds.
.
.
5,000
5,000
a
d Other (list separately) .
.
.
.
.
.
.
.
.
8
Refund of prior year federal income taxes .
.
9
Reserve for contingencies
.
.
.
.
.
.
.
10,000
c
Additional adjustments:
10
11
Totals .
.
.
.
.
.
.
.
.
.
.
.
.
.
78,650
249,700
Current Year Earnings and Profits
.
.
.
.
.
.
171,050
Cash Distributions:
40,000
40,000
a
Preferred stock: 3/15/2016, 6/15/2016, 9/15/2016, 12/15/2016
10,000 Shares at $1.00/Share × 4 quarters = $40,000
Common stock:
1. 3/31/2016 - 90,000 Shares at $1.00 = $90,000
%
From current year earnings and profits .
.
.
65,525
65,525
a
72.81
%
From accumulated earnings and profits
.
.
20,900
(20,900)
a
23.22
%
Total distribution from earnings and profits .
86,425
96.03
%
From other distribution .
.
.
.
.
.
.
.
3,575
3.97
Total distribution .
.
.
.
.
.
.
.
.
.
%
100
90,000
2. 9/30/2016 - 90,000 Shares at $1.00 = $90,000
65,525
From current year earnings and profits
72.81%
65,525
a
24,475
From other distribution
27.19%
90,000
Total distribution
100%
Total cash distributions .
.
.
.
.
.
.
.
.
.
.
220,000
Totals
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
304,650
229,200
171,050
171,050
Current year change .
.
.
.
.
.
.
.
.
.
.
.
75,450
(20,900)
Balance forward 12/31/
.
.
.
.
.
.
.
.
2016
$149,500
$—0—
5452
Form
(Rev. 10-2016)
Explanation of Key
a - Identical items on the same line.
b - Item offset in 2014. Bad debt reserve method used for book accounting.
c - Item partially offset.
* Taxable income before net operating loss deduction and special deductions.
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