Publication 542: Corporations;

This is archived information that pertains only to the 2004 Tax Year. If you
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Form 1120 (2003) Page 2. Summary: This is an example of Form 1120 (2003), page 2, with these line items completed:

Under “Schedule A: Cost of Goods Sold”:

“1. Inventory at beginning of year” field contains 298,400

“2. Purchases” field contains 1,345,100

“3. Cost of labor” field contains 802,000

“4. Additional section 263A costs (attach schedule)” field contains 85,000

“5. Other costs (attach schedule)” field contains 145,200

“6. Total. Add lines 1 through 5” field contains 2,675,700

“7. Inventory at end of year” field contains 755,700

“8. Cost of goods sold. Subtract line 7 from line 6. Enter here and on line 2, page 1” field contains 1,920,000

“9a. Check all methods used for valuing closing inventory: (ii) Lower of cost or market as described in Regulations section 1.471-4” checkbox checked

“9e. If property is produced or acquired for resale, do the rules of section 263A apply to the corporation? Yes” checkbox checked

“9f. Was there any change in determining quantities, cost, or valuation between opening and closing inventory? If Yes, attach explanation. No” checkbox checked

Under “Schedule C: Dividends and Special Deductions”:

“2. Dividends from 20%-or-more-owned domestic corporations that are subject to the 80% deduction (other than debt-financed stock):”

“(a) Dividends received” field contains 10,000

“(c) Special deductions (a) multiplied by (b)” field contains 8,000

“9. Total. Add lines 1 through 8. See page 16 of instructions for limitation: (c) Special deductions (a) multiplied by (b)” field contains 8,000

“19. Total dividends. Add lines 1 through 17. Enter here and on line 4, page 1: (a) Dividends received” field contains 10,000

“20. Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on line 29b, page 1: (c) Special deductions (a) multiplied by (b)” field contains 8,000

Under Schedule E: Compensation of Officers:

1(a) Name of officer	1(b) Social security number	1(c) Percent of time devoted to business	1(d) Percent of corporation stock owned: Common	1(f) Amount of compensation
Jane Barclay	581-00-0936	100%	45%	135,000
Maxine R. Collins	447-00-2604	100%	15%	70,000
Charlene Gibbons	401-00-2611	50%	2%	37,857

“2. Total compensation of officers (amounts in column (f))” field contains 242,857

“3. Compensation of officers claimed on Schedule A and elsewhere on return” field contains 72,857

“4. Subtract line 3 from line 2. Enter the result here and on line 12, page 1” field contains 170,000