Form Bc-1120 - Income Tax Corporate Return - City Of Battle Creek - 2007 Page 2

SCHEDULE D

BUSINESS ALLOCATION FORMULA

Located

Located

Everywhere

Battle Creek

Percentage

.

I

II

II

I

.

1. Average net book value of real and tangible personal property .............................................................. $..........................................

$....................................

a. Gross annual rent paid for real property only, multiplied by 8 .............................................................. ............................................

......................................

b. TOTAL (add lines 1 and 1a) ............................................................................................................... $............................................

$....................................

.......................%

2. Total wages, salaries, commissions and other compensation of all employees ....................................... ............................................

......................................

.......................%

3. Gross receipts from sales made or services rendered .......................................................................... ............................................

......................................

.......................%

4. Total percentages - add the three percentages computed for lines lb, 2 and 3 which you entered in the last column (you must compute a percentage

for each of lines 1 b, 2 and 3) ............................................................................................................................................................................................................

.......................%

5. Average percentage (one-third of line 4)—enter here and on page 1 line 6 .......................................................................................................................................

.......................%

In determining the average percentage (line 5) a factor shall be excluded from the computation only when such factor does not exist anywhere insofar as the

taxpayer’s business operation is concerned and, in such cases, the sum of the percentage shall be divided by the number of factors actually used.

In the case of a taxpayer authorized by the Income Tax Administrator to use one of the special formulas, attach explanation and use the lines provided below:

.

a. Numerator ..........................................................................................

c. Percentage (a b) enter here.............................................and on page 1, line 6

.

b. Denominator ......................................................................................

d. Date of Administrator’s approval letter.................................................................

SCHEDULE E

ADJUSTMENTS

Schedule E is used to adjust the income reported on page 1 on lines 1a or lb to give effect to the requirements of the Battle Creek Income Tax Ordinance. The same period of time used to compute

items for Schedule E must be the same time period used to report income on lines 1a or lb. Schedule E entries are allowed only to the extent directly related to net income as shown on lines 1a

or lb on page 1.

PERIOD: From...................................................................... to..........................................................................

COLUMN 1

COLUMN 2

Add—Items Not Deductible

Deduct—Items Not Taxable and Allowable Deductions

1. Adjustments to income relating to prior periods .................... $ ................................

6. Interest from U. S. obligations and from United States

(See instructions)

governmental units ........................................................... $ ...................................

2. All expenses (including interest) incurred in connection

7. Dividends-received deduction (exclude dividends

with derivation of income not subject to Battle Creek

in line 6 above) ...................................................................

...................................

income tax .............................................................................

.................................

8. Dividend gross up of foreign taxes .....................................

...................................

3. Battle Creek income tax paid or accrued ...............................

.................................

9. Foreign tax deduction ........................................................

...................................

4. Other(submit schedule) ........................................................

.................................

10. Other (submit schedule) ...................................................

...................................

..............................................................................................

.................................

..........................................................................................

...................................

..............................................................................................

.................................

..........................................................................................

...................................

..............................................................................................

.................................

..........................................................................................

...................................

5. Total Additions (enter on page 1, line 2) .................................

$ .................................

11. Total Deductions (enter on page 1, line 4) .......................... $ ...................................

SCHEDULE F - SUBCHAPTER S CORPORATION INCOME

Schedule F is used by Subchapter S corporations to reconcile the amount reported on line 1, page 1, BC-1120, with federal Form 1120S and Schedule K of federal 1120S

ATTACH FEDERAL FORM 1120S AND SCHEDULE K OF FEDERAL 1120S.

1. Ordinary income (loss) from trade or business (per federal 1120S) ...............................................................................................................................

$ ............................................

2. Income (loss) per Schedule K, federal 1120S, lines 2 through 6 .....................................................................................................................................

............................................

3. Total income (loss) (Add lines 1 and 2) ..........................................................................................................................................................................

............................................

4. Deductions per Schedule K, federal 1120S ....................................................................................................................................................................

............................................

5. Taxable income before net operating loss deduction and special deductions (Subtract line 4 from line 3) Enter here and on page 1, line 1, BC-1120 ...

$ ............................................