$111.$Tax Return Problem. KJJ Corp. was formed on October $10,2017,$ by Kimberly Jen $(123-45-6789),$ Jennifer James $(234-567890),$ and James Kim $(345-67-8901).$ It is a hardware store and is located at $175$ Clerk Road, Newtown, OH $45105.$ KJJ$\text{'}$s employer identification number is $10-1010101,$ and its business code is $444130.$ KJJ$\text{'}$s telephone number is $513-525-1234,$ and its e$-$mail address is

KJJCorp@kjj$.$com.

KJJ Corp. uses the calendar year and the accrual basis. It uses straight$-$line depreciation for tax and book purposes and FIFO and lower$-$of$-$cost$-$or$-$market for inventory purposes.

Kimberly, Jennifer, and James each received $200$ shares of KJJ Corp.$\text{'}$s common stock on October $10,2017.$ No other stock has been issued or is outstanding. Each is a fulltime employee of the firm, and each is paid $$200,000.$

KJJ Corp. made a $$105,000($ $$35,000$ to each owner$)$ cash distribution in $2022.$