11-20 PLEASE --- The question is at the bottom right of the 2nd page for clarification.

1. On November 1, 2008, Janet Morton and Kim Wong formed Pet Kingdom, Inc., to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is summarized as follows: CHAPTER 3 Corporations introduction and Operating Rules Expenses Salaries-officers Janet Morton snnooo Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is (214) 555-2211; and its e-mail address is petkingdom@pki.com The employer identification number is 11-1111112, and the principal business activity code is 453910. .Janet and Kim each own 50 % of the common stock; Janet is president and Kim is vice president of the company. No other class of stock is authorized. Both Janet and Kim are full-time employees of Pet Kingdom. Janet's Social Security number is 123-45-6788, and Kim's Social Security number is 123-45-6787. Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are deter- mined using FIIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated deprecia- tion (MACRS) for tax purposes During 2018, the corporation distributed cash dividends of $250,000. $262.500 Kim Wong Salaries-clerical and sales 262.500 $525.000 725,000 238000 Taxes (state, local and payroll Repairs and maintenance Interest expense Loan to purchase state bonds 140,000 $ 9.000 Other business loans Advertising Rental expense Depreciation Chareable contributions Employee benefit programs Premiums on term lde insurance policies on lives of Janet Morton and Kim Wong Pet Kingdom is the designated beneficiary Total expenses Net income before taxes Federal incomne tax 207,000 216,000 58.000 109,000 106.000 38.000 60000 40,000 2,255,000) $1,073,750 (21.734) Pet Kingdom's financial statements for 2018 are shown below. Net income per books 5 852016 Oepeeciation for tax purposes is $1M000 You ane not provided enough detaled data complete a form 4562 idepreciations f you solve this problem using intut ooct eer the amount of depeciaion on foe 20 of form 1120 Income Statement Income Balance Sheet Gross sales $5,750,000 December 31, 2018 Assets January 1, 2018s Sales returns and allowances Cash Teade riotes and accounts receivable (200,000) $1.200,000 1,039.461 2062.500 2750,000 Net sales 2147,000 $5,550,000 3030,000 inventories Cost of goods sold Gross profit Dividends recelved from stock investments in less-than-20% owned US. corporations Interest Inconme (2,300,000) Stockinvestment State bonds Certificates of deposit Prepaicd Federal tax Buildings and other depreciable assets Accumulated depreciation 1,125,000 1,125,000 $3,250,000 375,000 400,000 375,000 400,000 2.266 -0- 5455,000 SASS,000 43,750 (712.000) (606000) 812 500 128.500 812.500 Land State bonds Certificates of deposit 140,000 15,000 Other assets $13.714,000 $13.802,727 Total assets 20,000 35,000 $3,328,750 Total income December 31, 2018 January 1, 2018 Liabilities and Equity $1.840,7113 155,000 S 2.284.000 175.000 Accounts payable Other current liablties Mortgages Capital stock Retained earnings Total liablities and equity continued 4.625.000 2.500,000 4.130,000 $13.214000 4575,000 2500.000 4732016 $13.802.727 During 2018, Pet Kingdom made estimated tax payments of $56,000 each quarter to the 1RS. Prepare a Form 1120 for Pet Kingdom for tax year 2018. Suggested software ProConnect Tax Online. 1. On November 1, 2008, Janet Morton and Kim Wong formed Pet Kingdom, Inc., to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is summarized as follows: CHAPTER 3 Corporations introduction and Operating Rules Expenses Salaries-officers Janet Morton snnooo Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is (214) 555-2211; and its e-mail address is petkingdom@pki.com The employer identification number is 11-1111112, and the principal business activity code is 453910. .Janet and Kim each own 50 % of the common stock; Janet is president and Kim is vice president of the company. No other class of stock is authorized. Both Janet and Kim are full-time employees of Pet Kingdom. Janet's Social Security number is 123-45-6788, and Kim's Social Security number is 123-45-6787. Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are deter- mined using FIIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated deprecia- tion (MACRS) for tax purposes During 2018, the corporation distributed cash dividends of $250,000. $262.500 Kim Wong Salaries-clerical and sales 262.500 $525.000 725,000 238000 Taxes (state, local and payroll Repairs and maintenance Interest expense Loan to purchase state bonds 140,000 $ 9.000 Other business loans Advertising Rental expense Depreciation Chareable contributions Employee benefit programs Premiums on term lde insurance policies on lives of Janet Morton and Kim Wong Pet Kingdom is the designated beneficiary Total expenses Net income before taxes Federal incomne tax 207,000 216,000 58.000 109,000 106.000 38.000 60000 40,000 2,255,000) $1,073,750 (21.734) Pet Kingdom's financial statements for 2018 are shown below. Net income per books 5 852016 Oepeeciation for tax purposes is $1M000 You ane not provided enough detaled data complete a form 4562 idepreciations f you solve this problem using intut ooct eer the amount of depeciaion on foe 20 of form 1120 Income Statement Income Balance Sheet Gross sales $5,750,000 December 31, 2018 Assets January 1, 2018s Sales returns and allowances Cash Teade riotes and accounts receivable (200,000) $1.200,000 1,039.461 2062.500 2750,000 Net sales 2147,000 $5,550,000 3030,000 inventories Cost of goods sold Gross profit Dividends recelved from stock investments in less-than-20% owned US. corporations Interest Inconme (2,300,000) Stockinvestment State bonds Certificates of deposit Prepaicd Federal tax Buildings and other depreciable assets Accumulated depreciation 1,125,000 1,125,000 $3,250,000 375,000 400,000 375,000 400,000 2.266 -0- 5455,000 SASS,000 43,750 (712.000) (606000) 812 500 128.500 812.500 Land State bonds Certificates of deposit 140,000 15,000 Other assets $13.714,000 $13.802,727 Total assets 20,000 35,000 $3,328,750 Total income December 31, 2018 January 1, 2018 Liabilities and Equity $1.840,7113 155,000 S 2.284.000 175.000 Accounts payable Other current liablties Mortgages Capital stock Retained earnings Total liablities and equity continued 4.625.000 2.500,000 4.130,000 $13.214000 4575,000 2500.000 4732016 $13.802.727 During 2018, Pet Kingdom made estimated tax payments of $56,000 each quarter to the 1RS. Prepare a Form 1120 for Pet Kingdom for tax year 2018. Suggested software ProConnect Tax Online