Form 1120-RIC Form 1120-RIC U.S. Income Tax Return for Regulated Investment Companie

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 1120-RIC, PAGE 1 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
1
FLAT SIZE: 216mm (8 ⁄ 2 ") X 559mm (22") FOLD TO 216mm (81⁄ 2 ") X 279mm (11")
PERFORATE: HORIZONTALLY ON FOLD
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1120-RIC

Department of the Treasury
Internal Revenue Service

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B

Date

Revised proofs
requested

©

Please
type or
print

OMB No. 1545-1010

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For calendar year 2007 or tax year beginning
Name of fund

Signature

O.K. to print

U.S. Income Tax Return for
Regulated Investment Companies

Year of RIC status
election

Date fund was established
(see instructions)

Action

, 2007, and ending

2007

, 20

See separate instructions.

Number, street, and room or suite no. (If a P.O. box, see instructions.)

C

Employer identification number

D

Total assets (see instructions)

City or town, state, and ZIP code

$

E Check applicable boxes:

(1)

Final return

(2)

Name change

(3)

Address change

(4)

Amended return

F Check if the fund is a personal holding company (attach Sch. PH) or if the fund is not in compliance with Regs. sec. 1.852-6 for this tax year

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Income

Part I—Investment Company Taxable Income (see instructions)

Dividends
Interest
Net foreign currency gain or (loss) from section 988 transactions (attach schedule)
Payments with respect to securities loans

5

Excess of net short-term capital gain over net long-term capital loss from Schedule D (Form 1120),
line 12 (attach Schedule D (Form 1120))
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
Other income (see instructions—attach schedule)
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Total income. Add lines 1 through 7

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7
8

Deductions (see instructions)

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2
3
4

1
2
3
4

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10
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13
14
15
16
17
18
19
20
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23
24
25

Compensation of officers (Schedule E, line 2)
Salaries and wages (less employment credits)
Rents
Taxes and licenses
Interest
Depreciation (attach Form 4562)
Advertising
Registration fees
Insurance
Accounting and legal services
Management and investment advisory fees
Transfer agency, shareholder servicing, and custodian fees and expenses
Reports to shareholders
Other deductions (see instructions—attach schedule)
Total deductions. Add lines 9 through 22
Taxable income before deduction for dividends paid. Subtract line 23 from line 8
Less: Deduction for dividends paid (Schedule A, line 6a)

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Tax and Payments

26
27

Investment company taxable income. Subtract line 25 from line 24
Total tax (Schedule J, line 7)
28a
28a 2006 overpayment credited to 2007
28b
b 2007 estimated tax payments
) d Bal © 28d
28c (
c Less 2007 refund applied for on Form 4466
28e
e Tax deposited with Form 7004
28f
f Credit for tax paid on undistributed capital gains (attach Form 2439)
28g
g Credit for federal tax paid on fuels (attach Form 4136)
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29 Estimated tax penalty (see instructions). Check if Form 2220 is attached
30 Amount owed. If line 28h is smaller than the total of lines 27 and 29, enter amount owed
31 Overpayment. If line 28h is larger than the total of lines 27 and 29, enter amount overpaid
Refunded
32 Enter amount from line 31: Credited to 2008 estimated tax ©

Sign
Here

©

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Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

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Paid
Preparer’s
Use Only

Signature of officer
Preparer’s
signature

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Firm’s name (or
yours if self-employed),
address, and ZIP code

Date

©

Title
Date

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For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

May the IRS discuss this return with
the preparer shown below (see
instructions)?
Yes
No

Preparer’s SSN or PTIN

Check if
self-employed
EIN
Phone no.
Cat. No. 64140B

(

)
Form

1120-RIC

(2007)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 1120-RIC, PAGE 2 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") X 559mm(22") FOLD TO 216mm (81⁄ 2 ") X 279mm (11")
PERFORATE: HORIZONTALLY ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120-RIC (2007)

Page

2

Part II—Tax on Undistributed Net Capital Gain Not Designated Under Section 852(b)(3)(D)
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2
3
4

Schedule A
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Deduction for Dividends Paid (Do not include exempt-interest dividends or capital gain dividends
reported on Form 2438, line 9b; see instructions.)

Dividends paid (other than dividends paid after the end of the tax year). Do
not include dividends deemed paid in the preceding tax year under section
852(b)(7) or 855(a), or deficiency dividends as defined in section 860(f)

1

Dividends paid in the 12-month period following the close of the tax year
that the fund elects to treat as paid during the tax year under section 855(a)

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3

Dividends declared in October, November, or December and deemed
paid on December 31 under section 852(b)(7)
4 Consent dividends (section 565) (attach Forms 972 and 973)
5 Foreign tax paid deduction (section 853(b)(1)(B)), if applicable
6 Deduction for dividends paid:
a Ordinary dividends. Add lines 1 through 5 of column (a). Enter here and on line 25, Part I
b Capital gain dividends. Add lines 1 through 4 of column (b). Enter here
and on line 2, Part II, above

Schedule B
1
2
3
4
5

1
2
3
4

Net capital gain from Schedule D (Form 1120), line 13 (attach Schedule D (Form 1120))
Less: Capital gain dividends from Schedule A, line 6b
Amount subject to tax. Subtract line 2 from line 1
Capital gains tax. Multiply line 3 by 35% (.35). Enter tax here and on line 2b, Schedule J

(a) Ordinary dividends

(b) Capital gain dividends

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6a

6b

Information Required With Respect to Income From Tax-Exempt Obligations

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Did the fund qualify under section 852(b)(5) to pay exempt-interest dividends for 2007?
If “Yes,” complete lines 2 through 5.
Amount of interest excludible from gross income under section 103(a)
Amounts disallowed as deductions under sections 265 and 171(a)(2)
Net income from tax-exempt obligations. Subtract line 3 from line 2
Amount of line 4 designated as exempt-interest dividends

Yes

No

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4
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Schedule E Compensation of Officers (see instructions for line 9, Part I)
Note: Complete Schedule E only if total receipts (line 8, Part I, plus net capital gain from line 1, Part II, and line 9a,
Form 2438) are $500,000 or more.
(a) Name of officer

(b) Social security
number

(c) Percent of time
devoted to business

1
2

%
%

(e) Amount of
compensation

%
%
2

Total compensation of officers. Enter here and on line 9, Part I

Schedule J
1
2a
b
c
d
3a
b
c

(d) Percent of fund
stock owned

Tax Computation (see instructions)

Check if the fund is a member of a controlled group (attach Schedule O (Form 1120))
2a
Tax on investment company taxable income
2b
Tax on undistributed net capital gain (from Part II, line 4)
2c
Alternative minimum tax (attach Form 4626)
Income tax. Add lines 2a through 2c
3a
Foreign tax credit (attach Form 1118)
3b
Qualified electric vehicle credit (attach Form 8834)
General business credit. Check applicable box(es):
3c
Form 3800
Form
Other (attach schedule)
3d
d Other credits (attach schedule—see instructions)
e Total credits. Add lines 3a through 3d
4 Subtract line 3e from line 2d
5 Personal holding company tax (attach Schedule PH (Form 1120))
6 Other taxes. Check if from:
Form 4255
Other (attach schedule)
7 Total tax. Add lines 4 through 6. Enter here and on page 1, line 27

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Form

1120-RIC

(2007)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 1120-RIC, PAGE 3 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
1
FLAT SIZE: 216mm (8 ⁄ 2 ") X 559mm (22") FOLD TO 216mm (81⁄ 2 ") X 279mm (11")
PERFORATE: HORIZONTALLY ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120-RIC (2007)

Schedule K

Page

Other Information (see instructions)

1 Check method of accounting:
a
Cash
b
Accrual
c
Other (specify) ©

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2

At the end of the tax year, did the RIC own, directly or indirectly, 50% or more of the voting stock of a domestic corporation?
(For rules of attribution, see section 267(c).)
If “Yes,” attach a schedule showing (a) name and identification number, (b) percentage owned, and (c) taxable income or
(loss) before a net operating loss (NOL) and special deductions of such corporation for the tax year ending with or within your
tax year.

3

Is the RIC a subsidiary in a parent-subsidiary controlled group?
If “Yes,” enter the employer identification number and the name of the parent corporation©

4

At the end of the tax year, did any individual, partnership, corporation, estate, or trust own, directly or indirectly, 50% or
more of the RIC’s voting stock? (For rules of attribution, see section 267(c).)
If “Yes,” attach a schedule showing name and identification number. (Do not include any information already entered in 3
above.) Enter percentage owned ©

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3

Yes No

At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of:
a The total voting power of all classes of stock of the fund entitled to vote or
b The total value of all classes of stock of the fund?
If “Yes,” enter:
(1) Percentage owned ©
(2) Owner’s country ©
The fund may have to file Form 5472. Enter number of Forms 5472 attached ©

6

During this tax year, did the fund pay dividends (other than stock dividends and distributions in exchange for stock) in excess
of the fund’s current and accumulated earnings and profits? (see sections 301 and 316)
If “Yes,” file Form 5452.

7

Check this box if the fund issued publicly offered debt instruments with original issue discount
If checked, the fund may have to file Form 8281.

8

Enter the amount of tax-exempt interest received or accrued during the tax year.

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©

$

9

If this return is being filed for a series fund (as defined in section 851(g)(2)), enter
a The name of the regulated investment company in which the fund is a series ©
b The date the regulated investment company was incorporated or organized ©

10

Section 853 election. Check this box if the fund meets the requirements of section 853(a) and section 901(k) and elects
to pass through the deduction or credit for foreign taxes it paid to its shareholders. See the instructions
©
for additional details and requirements

11

Regulations section 1.852-11 election. Check this box if, for purposes of computing taxable income, the fund elects
under Regulations section 1.852-11(f)(1) to defer all or part of its post-October capital loss or post-October currency
©
loss for this tax year
If the election is made, enter the amounts deferred:
a Post-October capital loss ©
b Post-October currency loss ©
Form

1120-RIC

(2007)

1
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 1120-RIC, PAGE 4 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") X 559mm (22") FOLD TO 216mm (81⁄ 2 ") X 279mm (11")
PERFORATE: HORIZONTALLY ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120-RIC (2007)

Page

Schedule L Balance Sheets per Books
Assets
1
2a
b
3
4
5
6
7
8
9a
b
10
11a
b
12
13

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Cash
Trade notes and accounts receivable
Less allowance for bad debts
U.S. government obligations
Tax-exempt securities (see instructions)
Other current assets (attach schedule)
Loans to shareholders
Mortgage and real estate loans
Other investments (attach schedule)
Buildings and other fixed depreciable assets
Less accumulated depreciation
Land (net of any amortization)
Intangible assets (amortizable only)
Less accumulated amortization
Other assets (attach schedule)
Total assets

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(b)

(a)

(c)

(d)

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End of tax year

Beginning of tax year

Liabilities and Shareholders’ Equity
14 Accounts payable
15 Mortgages, notes, bonds payable in less than 1 year
16 Other current liabilities (attach schedule)
17 Loans from shareholders
18 Mortgages, notes, bonds payable in 1 year or more
19 Other liabilities (attach schedule)
20 Capital stock
21 Additional paid-in capital
22 Retained earnings—Appropriated (attach schedule)
23 Retained earnings—Unappropriated
24 Adjustments to shareholders’ equity (attach schedule)
(
)
(
)
25 Less cost of treasury stock
26 Total liabilities and shareholders’ equity
Note: The fund is not required to complete Schedules M-1 and M-2 if the total assets on Schedule L, line 13, column (d), are less than $25,000.

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Schedule M-1
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2
3
4

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a
b
c
d

Reconciliation of Income (Loss) per Books With Income per Return (see instructions)

Net income (loss) per books
Federal income tax (less built-in gains tax)
Excess of capital losses over capital gains
Income subject to tax not recorded on
books this year (itemize):

Expenses recorded on books this year not
deducted on this return (itemize):
Depreciation
$
Expenses allocable to tax-exempt interest
income
$
Section 4982 tax
$
Travel and entertainment $

7

Tax-exempt interest
8

6
1
2
3

4

$

Deductions on this return not charged
against book income this year (itemize):

a Depreciation
$
b Deduction for dividends
paid (line 25, Part I)
$
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10

11
12
Add lines 1 through 5

Schedule M-2

Income recorded on books this year not
included on this return (itemize):

Net capital gain from Form 2438, line 9a
If the fund did not file Form 2438, enter the
net capital gain from Schedule D (Form
1120), line 13. Otherwise, enter -0Add lines 7 through 10
Investment company taxable income
(line 26, Part I)—line 6 less line 11

Analysis of Unappropriated Retained Earnings per Books (Schedule L, line 23)

Balance at beginning of year
Net income (loss) per books
Other increases (itemize):

Add lines 1, 2, and 3

5

Distributions:

6

a Cash
b Stock
c Property
Other decreases (itemize):

7
8

Add lines 5 and 6
Balance at end of year (line 4 less line 7)

Printed on recycled paper

Form

1120-RIC

(2007)