FACTS

Valerie Lawson and Clara Norman are the sole equal shareholders in the corporation of Lawson And Norman Enterprises, Inc. The corporation, which is a retail office supplies and stationery store, began its operations on January 2, 1985 (also date of incorporation). For Federal Income Tax purposes, the corporation is a calendar year taxpayer and uses the Accrual Method Of Accounting.

FINANCIAL INFORMATION

During the year of 2013, Lawson And Norman Enterprises, Inc. reported the following Income and Expenses (including necessary accruals) for Financial Accounting purposes:

Gross Receipts                                                                        $1,482,000

Sales Returns And Allowances                                       109,000

Purchases                                                                         510,000     

Dividends Received From Stock (Not Qualified Dividends)

Investments In Less Than twenty percent (20%)

Owned United States (U. S.) Corporation            80,000

Interest Income:

Taxable Interest                                                     18,000

Tax-Exempt Interest                                                7,200

Salaries:  Officers                                                            150,000

Other Employees                                              108,000

Repairs And Maintenance                                                 19,300     

Rent Expense - Office                                                                   84,000

Rent Expense - Equipment                                                15,500

Payroll Taxes (Federal And State)                                     19,600

Interest Expense                                                                25,200

Advertising Expense                                                          44,500

Charitable Contributions                                                    48,000

Legal And Professional Fees                                             28,800

Depreciation Expense                                                       50,000 *

Utilities Expense                                                               27,300

Employee's Health Insurance Premiums                            14,200

Entertainment Of Clients                                                     5,000

Officers' Life Insurance Premiums                                    14,400 **

* - Based upon Straight-Line Depreciation, a useful life of five (5) years and no salvage value for all  assets (see specific assets below).

** - Lawson And Norman Enterprises, Inc. Is The Designated Beneficiary.

The Lawson And Norman Enterprises, Inc. owns the following depreciable assets:

ASSET DESCRIPTION                      DATE ACQUIRED                        ORIGINAL COST

Automobile - 2012 Lexus 460                            April 1, 2012                            $ 50,000

(Five-year Property)

Automobile - 2012 Cadillac Seville        April 1, 2012                              50,000

(Five-year Property)

Furniture And Fixtures                            May 1, 2011                             150,000

(Seven-year Property)                                                                        

Each automobile was used a total of 18,000 miles during the year of 2013 all which were business miles.  The automobiles were not available for personal use during off-duty hours and were used solely by Valerie Lawson and Clara Norman, who both have another vehicle available for personal use. For Federal Income Tax purposes, all of these assets are depreciated using the Modified Accelerated Cost Recovery System (MACRS).  Section 179 Deduction was not elected in regards to any of these assets nor was Straight-Line Depreciation used.

BALANCE SHEETS

The Balance Sheets (Financial Accounting) for the Lawson And Norman Enterprises, Inc. at the beginning and ending of the year of 2013 are as follows:

ASSETS                                                                      January 1             December 31

Cash                                                                           $  36,000               $   84,000

Trade Notes And Accounts Receivable                         96,000                    90,000

Inventory  (Valued At Cost) *                                                 120,000                  100,000

Marketable Securities - Long Term                              140,000                  170,000

Depreciable Assets (And Land)                                   260,000 **             260,000 **

Less: Accumulated Depreciation                                  (65,000)                (115,000)

Other Assets (Deposits)                                                  12,000                    12,000

                                                                                    ------------              -------------

TOTAL ASSETS                                                       $ 599,000              $ 601,000

                                                                                    =======             =======

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts Payable (Non Recourse)                           $    96,000              $ 116,200

Federal Income Taxes Payable                                                    8,600                       ?

Notes Payable - Short Term (Recourse)                         16,000                    24,000

Notes Payable - Long Term (Recourse)                       164,000                  212,000

Common Stock                                                              10,000                    10,000

Retained Earnings (Unappropriated)                          304,400                  229,042

TOTAL LIABILITIES AND                                               ------------                ------------

STOCKHOLDERS' EQUITY        $  599,000               $  601,000

=======               =======

*   - The rules of Section 263A of the Internal Revenue Code do not apply to the corporation.

** - Includes $10,000 allocated to Land.

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ESTIMATED TAX PAYMENTS

During 2013, Lawson And Norman Enterprises, Inc. made the following estimated tax payments:

                                                April 15, 2013                         $30,000

                                                June 17, 2013                          $20,000

                                                September 16, 2013                $20,000

                                                December 16, 2013                 $10,000

The 2012 Federal Income Tax liability for Lawson And Norman Enterprises, Inc. was $76,800 and no overpayment of 2012 Federal Income Tax is being applied to the 2013 Federal Income Tax liability of Lawson And Norman Enterprises, Inc.

REQUIRED

Prepare the C (Regular) Corporation Tax Return for the Lawson And Norman Enterprises, Inc. for the tax year of 2013.  The following Forms are needed to complete the Tax Return:

Form 1120

Form 1125-A

Form 1125-E

Schedule G

Form 4562

Form 4626

The Income Tax Return is due on DECEMBER 6, 2014.