1-9260-4319-9334-d9eff2101404/page/05e4e1d9f58b4c4b2a90800961ea6104 estern Federal Taxation: Corporations, Partnerships, Estates Quick Tour Print S On February 12, 2006, Nancy Trout and Delores Lake formed ProConnect Tax Kingfisher Corporation to sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follows: Kingfisher's business address is 1717 Main Street, Ely, MN 55731; its telephone number is (218) 555-2211; and its e-mail address is kingfisher@kf.com. The employer identification number is 11-1111113, and the principal business activity code is 451110. Nancy owns 50% of the common stock and is president of the company, and Delores owns 50% of the common stock and is vice president of the company. No other class of stock is authorized. Both Nancy and Delores are full-time employees of Kingfisher. Nancy's Social Security number is 123-45-6788, and Delores's Social Security number is 123-45- 6787. Kingfisher is an accrual method, calendar year taxpayer. Inventories are Kingfisher is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Kingfisher the straight-line method of deprecation for book purposes and accelerated depreciation (MACRS) for tax purposes. During 2020, the corporation distributed cash dividends of $80,000. Kingfisher's financial statements for 2020 are shown below. Income Statement Income Gross sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends received from stock investments in less-than-20%-owned US. corporations Interest income State bonds Certificates of deposit Total income Expenses $ 14,000 10000 Salaries-officers: Nancy Trout Delores Lake Salaries-clerical and sales $160,000 160,000 $320,000 290,000 Taxes (state, local, and payrol 85,000 Repairs and maintenance 56,000 interest expense Business loans $ 12,000 Loan to purchase state bonds 8,000 20,000 Advertising 5,000 Rental expense Depreciation Charitable contributions (cash) 68,000 40,000 15,000 $2,408,000 (80,000 $2,328,000 (920,000) $1,408,000 12,000 24,000 $1,444,000 axation: Corporations, Partnerships, Estates sher's financial statements for 2020 are shown below. Details Income Statement Income Gross sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends received from stock investments in less-than-20%-owned US. corporations Interest income State bonds Certificates of deposit Total income Expenses Salaries-officers Nancy Trout Delores Lake Salaries-clerical and sales Taxes (state, local, and payroll) Repairs and maintenance Interest expense $2,408,000 (80,000) $2.328,000 (920,000) $1,408,000 12,000 $14,000 10,000 24,000 $1,444,000 $160,000 160,000 $320,000 290,000 85,000 56,000 Business loans $12,000 Loan to purchase state bonds 8,000 20,000 Advertising 6,000 Rental expense 68,000 Depreciation 40,000 Charitable contributions (cash) 15,000 Employee benefit programs 24,000 Premiums on term life insurance policies on lives of Nancy Trout and Delores Lake: Kingfisher is the designated beneficiary Total expenses Net income before taxes Federal income tax Net income per books 16,000 940,000 5 504,000 (106.680) $397.330 Qu You are not provided enough detailed information to complete a Form 4562 depreciation). If you solve this problem using Intuit ProConnect, enter the amou preciation). If you solve this problem using Intuit ProConnect, enter the amount deprecation on line 20 of Form 1120. Balance Sheet Assets Cash January 1, 2020 December 31, 2020 $ 380,000 $ 337,300 Trade notes and accounts receivable 308,400 Inventories State bonds 900,000 480,280 1,012,000 160,000 160,000 Federal income tax refund -0- 1,320 Certificates of deposit 140,000 140,000 Stock investments 300,000 300,000 Building and other depreciable assets 240,000 240,000 Accumulated depreciation (88,800) (128,800) Land 20,000 20,000 3,600 2,000 $2,363,200 $2,564,100 January 1, 2020 December 31, 2020 Other assets Total assets Liabilities and Equity Accounts payable Other current liabilities Mortgages Capital stock Retained earnings Total liabilities and equity Details $ 300,000 80,300 $ 233,880 40,000 210,000 200,000 500,000 500,000 1,272,900 1,590,220 $2,363,200 $2,564,100 During 2020, Kingfisher made estimated tax payments of $27,000 each quarter to the # 76 Quick Tour Print Trade notes and accounts receivable 308,400 480,280 Inventories 900,000 1,012,000 State bonds 160,000 160,000 Federal income tax refund -0- 1,320 Certificates of deposit 140,000 140,000 Stock investments 300,000 300,000 Building and other depreciable assets 240,000 240,000 Accumulated depreciation (88,800) (128,800) Land 20,000 20,000 Other assets 3,600 2,000 Total assets Liabilities and Equity Accounts payable Other current liabilities Mortgages Capital stock Retained earnings Total liabilities and equity Details $ 300,000 80,300 During 2020, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare Kingfisher's corporate tax return for tax year 2020 using Form 1120 (and any other appropriate forms and schedules). Suggested software: ProConnect Tax. $2,363,200 $2,564,100 January 1, 2020 December 31, 2020 $ 233,880 40,000 210,000 200,000 500,000 500,000 1,272,900 1,590,220 $2,363,200 $2,564,100 76F Partly