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- Cengage Learning CengageNoW2 Online teaching and learning Calculator Print Item Note: This problem is for the 2018 tax year. On November 1, 2008, Janet

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- Cengage Learning CengageNoW2 Online teaching and learning Calculator Print Item Note: This problem is for the 2018 tax year. 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 email address is petkingdompki.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 m's Social Security number is 987-65-4321. Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (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 Net sales (200,000) $ 5,550,000 (2,300,000) $ 3.250,000 Cost of goods sold Gross profit Dividends received from stock investments in less-than-20%-owned U.S. corporations Interest income: 43,750 State bonds $ 15,000 20,000 15.000 Certificates of deposit 3328.750 - Cengage Learning CengageNoW2 Online teaching and learning Calculator Print Item Note: This problem is for the 2018 tax year. 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 email address is petkingdompki.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 m's Social Security number is 987-65-4321. Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (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 Net sales (200,000) $ 5,550,000 (2,300,000) $ 3.250,000 Cost of goods sold Gross profit Dividends received from stock investments in less-than-20%-owned U.S. corporations Interest income: 43,750 State bonds $ 15,000 20,000 15.000 Certificates of deposit 3328.750

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