Revenue Ruling 99-40 Example (Continued)Summary: The following displays the transaction activity regarding the example used when considering Rev. Rul. 99-40. The text states: 490 Activity Summary--Book, Inc. FED -****1111 Book, Inc. 1120 - With RR 99-40 Tax Period: 2008/12 Run Method: IRS Default Interest To: 05/07/2011 GATT Method: Retain Character (New) LCU Method: Default IRS Underpay Net Start: All Dates Included Module Status: Open/(Open) GATT Date: 01/01/1995 Amount: $10,000 LCU Interest Date: LCU Interest is OFF Overpay Net Start: All Dates IncludedDate TranscriptDate StartDate EffectiveDescriptionSusp/EqualPrincipalBalance04/21/2009-03/15/2009150 Return Filed & Assessed Tax-1,234,456.001,234,456.0003/15/2009--460 Extension of Time for Filing--1,234,456.00---To 9/15/2009---08/16/2010-03/15/2009290 Additional Tax Assessment-521,886.001,756,342.00Various-03/15/2009660 Estimated Tax Payments-(925,842.00)830,500.0004/15/2008-03/15/2009716 Generated Overpay Credit Applied-(770,000.00)60,500.0004/15/200903/15/200909/15/2009836 Overpayment Credit Elect to Next Period(246,913.50)246,913.50307,413.5004/15/200903/15/20093/15/2010836 Overpayment Credit Elect to Next Period(214,472.50)214,472.50521,886.0006/23/2010--640 Advance Payment-(540,000.00)(18,114.00)DateDateDescriptionAmountFactorInterestBalance03/15/2009-150 Return Filed & Assessed Tax1,234,456.00-----290 Additional Tax Assessment521,886.00-----660 Estimated Tax Payments(925,842.00)-----716 Generated Overpay Credit Applied(770,000.00)--60,500.0003/16/200909/15/2009Underpay60,500.000.0208152581,259.3261,759.3209/15/2009-836 Overpayment Credit Elect to Next Period246,913.50--308,672.8209/16/200903/15/2010Underpay308,672.820.0200325416,183.50314,856.3203/15/2010-836 Overpayment Credit Elect to Next Period214,472.50--529,328.8203/16/201006/23/2010Underpay529,328.820.0110185665,832.44535,161.2706/23/2010-640 Advance Payment(540,000.00)--(4,838.73)06/24/201005/07/2011Overpay GATT(4,838.73)0.010658945(51.58)(4,89.31)Account SummaryAs ComputedPer TranscriptAdjustmentDeficiency Interest13,275.2725,708.70(12,433.43)Overpayment Interest(51.58)-(51.58)Principal Balance--7,594.70Totals13,223.6925,708.70(4,490.31)Copyright 2001-2006 Decision Modeling, Inc. Release 6.91 06/29/2011 11:08:31 A.M. PAGE 1 of 1