Based on the information below please fill out the blanks in part III of schedule M-3 for 2019 tax year in the US.

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. 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 11-1111111, 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 123-45-6789, and Kim's Social Security number is 987-65-4321 Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are deter- mined using FIFO 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. Pet Kingdom's financial statements for 2018 are shown below Income Statement Income Gross sales $5,750,000 Sales returns and allowances (200,000) Net sales $ 5,550,000 Cost of goods sold (2,300,000) Gross profit $3,250,000 Dividends received from stock investments in less-than-20% owned U.S. corporations 43,750 Interest income: State bonds $ 15,000 Certificates of deposit 20,000 Total income $ 3,328,750 continued 35,000 Expenses Salaries-officers: Janet Morton $ 262,500 Kim Wong 262,500 $525,000 Salaries-clerical and sales 725,000 Taxes (state, local, and payroll) 238,000 Repairs and maintenance 140,000 Interest expense: Loan to purchase state bonds $ 9,000 Other business loans 207,000 216,000 Advertising 58,000 Rental expense 109,000 Depreciation 106,000 Charitable contributions 38,000 Employee benefit programs 60,000 Premiums on term life insurance policies on lives of Janet Morton and Kim Wong: Pet Kingdom is the designated beneficiary 40,000 Total expenses (2,255,000) Net income before taxes $ 1,073,750 Federal income tax 221,734) Net income per books $ 852,016 Depreciation for tax purposes is $130,000. You are not provided enough detailed data to complete a Form 4562 depreciation. If you solve this problem using Intuit ProConnect, enter the amount of depreciation on line 20 of Form 1120 Balance Sheet Assets January 1, 2018 December 31, 2018 Cash $ 1,200,000 $ 1,039,461 Trade notes and accounts receivable 2,062,500 2,147,000 Inventories 2,750,000 3,030,000 Stock investment 1,125,000 1,125,000 State bonds 375,000 375,000 Certificates of deposit 400,000 400,000 Prepaid Federal tax -0- 2,266 Buildings and other depreciable assets 5,455,000 5,455,000 Accumulated depreciation (606,000) (712,000) Land 812,500 812,500 Other assets 140,000 128,500 Total assets $13,714,000 $13,802,727 Liabilities and Equity January 1, 2018 December 31, 2018 Accounts payable $ 2,284,000 $ 1,840,711 Other current liabilities 175,000 155,000 Mortgages 4,625,000 4,575,000 Capital stock 2,500,000 2,500,000 Retained earnings 4,130,000 4,732,016 Total liabilities and equity $13,714,000 $13,802,727 During 2018, Pet Kingdom made estimated tax payments of $56,000 each quarter to the IRS. Prepare a Form 1120 for Pet Kingdom for tax year 2018 (if the final 2018 Form 1120 is not available, see if a draft 2018 Form 1120 is available on the IRS website). Schedule Ma Part III Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With Taxable Income per Return-Expense/Deduction Items (see instructions) (a) (b) (c) (d) Expense/Deduction Items Expense Per Temporary Permanent Deduction per Income Statement Difference Difference Tax Return 1 U.S. current income tax expense 221,734 2 U.S. deferred Income tax experise.. 3 State and local current income tax expense 4 State and local deferred income tax expense... 5 Foreign current income tax expense (other than foreign withholding taxes). 6 Foreign deferred income tax expense 7 Foreign withholding taxes. Interest expense (see Instructions) 9 Stock option expense.. 10 Other equity-based compensation 11 Meals and entertainment 12 Fines and penalties Schedule M3 11 Meals and entertainment 12 Pines and penalties 13 Judgments, damages, awards, and similar costs 14 Parachute payments. 15 Compensation with section 162(m) limitation... 16 Pension and profit sharing 17 Other post-retirement benefits 18 Deferred compensation. 19 Charitable contribution of cash and tangible property 20 Charitable contribution of intangible property ... 21 Charitable contribution limitation/carryforward 22 Domestic production activities deduction (see instructions) 23 Current year acquisition or reorganization investment banking fees : 24 Current year acquisition or reorganization legal and accounting fees 25 Ourrent year acquisition/reorganization other costs Schedule M3 start-up COSES 28 Other amortization or impairment write-offs 29 Reserved. 30 Depletion 31 Deprecation 32 Bad debt expense 33 Corporate owned life insurance premiums 31 Purchase versus lease for purchasers and/or lessees) 35 Research and development costs.. 36 Section 118 exclusion (attach statement). 37 Section 162()-FDIC premiums paid by certain large financial institutions (see instructions).... 38 Other expense/deduction items with differences (attach statement). 39 Total expense/deduction items. Combine lines 1 through 38. Enter here and on Part II line 27 reporting positive amounts as negative and negative amounts as positive