Complete Form 1120 (Required Info. at bottom)

Complete Form 1120, pages 1, 2 and 3 for Kingfisher Corporation. Form 1120 OMB No. 1545-0123 Department of the Treasury Internal Revenue Service U.S. Corporation Income Tax Return For calendar year 2018 or tax year beginning -----, 2018, ending -----I- Go to www.irs.gov/ Form 1120 for instructions and the latest information. 2018 B Employer identification number 11-1111113 O A Check if: 1a Consolidated return (attach Form 851).. b Lifeonlife consolidated return .. 2 Personal holding co. (attach Sch. PH) .... 3 Personal service corp. (see instructions) ... 4 Schedule M-3 attached TYPE Kingfisher Corporation OR 1717 Main Street PRINT Ely, MN 55731 US C Date incorporated 2/12/2005 D Total assets (see instructions) O E Check if: (1) Initial return (2) Final return (3) Name change (4) Address change la Gross receipts or sales ................................ la b Returns and allowances ................................. c Balance. Subtract line 1b from line 1a .............. 2 Cost of goods sold (attach Form 1125-A) ............................................ 3 Gross profit. Subtract line 2 from line 1c ............................................ 4 Dividends and inclusions(Schedule C, line 23, column(a))................................ Income 5 Interest ........ 6 Gross rents .................................................... 7 Gross royalties ......... 8 Capital gain net income (attach Schedule D (Form 1120)). . . . . . . . . . . . . . . . . 9 Net gain or loss) from Form 4797, Part II, line 17 (attach Form 4797) .................. 10 Other income (see instructions-attach statement) ......... 11 Total income. Add lines 3 through 10 ................... 10 11 11 Total income. Add lines 3 through 10........ 12 Compensation of officers (see instructions-attach Form 1125-E) ....... 13 Salaries and wages (less employment credits) ......... 14 Repairs and maintenance ....................................................... 15 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Rents ..................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Taxes and licenses ........... 17 18 Interest (see instructions) ..................... 18 19 Charitable contributions . 20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562). Deductions (See instructions for limitations on deductions.) 21 Depletion ............................................................... 21 22 Advertising 22 23 Pension, profit-sharing, etc., plans .................................. 23 24 Employee benefit programs ....... 25 Reserved for future use.............. 26 Other deductions (attach statement) .............. 24 25 26 27 Total deductions. Add lines 12 through 26 ........ 27 28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 29a Net operating loss deduction (see instructions) ............... 29a b Special deductions (Schedule C, line 24, column (c))........... 29b C Add lines 29a and 290 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Taxable income. Subtract line 29c from line 28. See instructions ........... 30 31 Total tax (Schedule J, Part I, line 11) ...... .......... 31 32 2018 net 965 tax liability paid (Schedule J, Part II, line 12) .......... ......... 32 Tax, Refundable Credits, and Payments 33 Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23)........ 33 34 Estimated tax penalty. See instructions. Check if Form 2220 is attached ..... cu . . . . . . 34 . . . . . . . . . 35 Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed ...... 35 Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid .... 36 37 Enter amount from line 36 you want: Credited to 2019 estimated tax Refunded 37 Form 1120 (2018) Kingfisher Corporation 11-1111113 Page 2 Schedule C Dividends, Inclusions, and Special Deductions (see instructions) (a) Dividends and inclusions (b) Percentage (c) Special deductions (a) (b) 1 50 Dividends from less-than-20%-owned domestic corporations (other than debt- financed stock).... Dividends from 20%-or-more-owned domestic corporations (other than debt- financed stock)... 2 65 see 3 Dividends on certain debt-financed stock of domestic and foreign corporations instructions 4 Dividends on certain preferred stock of less-than-20%-owned public utilities 23.3 5 Dividends on certain preferred stock of 20%-or-more-owned public utilities 26.7 6 Dividends from less-than-20%-owned foreign corporations and certain FSCS 50 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs 65 8 Dividends from wholly owned foreign subsidiaries ... 100 9 Subtotal. Add lines 1 through 8. See instructions for limitations ..... see instructions 9 Subtotal. Add lines 1 through 8. See instructions for limitations ... see instructions 100 100 100 10 Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 ...... 11 Dividends from affiliated group members .. 12 Dividends from certain FSCS .......... 13 Foreign-source portion of dividends received from a specified 10%-owned foreign corporation (excluding hybrid dividends) (see instructions) .... 14 Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13 (including any hybrid dividends) ..... see 15 Section 965(a) inclusion .............. instructions 16a Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471) (see instructions) ........ 100 b Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions) ...... c Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17 (attach Form(s) 5471) (see instructions) .................... 17 Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992) 18 Gross-up for foreign taxes deemed paid .............. 19 IC-DISC and former DISC dividends not included on line 1, 2, or 3 ....... 20 Other dividends ........................ 21 Deduction for dividends paid on certain preferred stock of public utilities .... 22 Section 250 deduction (attach Form 8993) .... 23 Total dividends and inclusions. Add lines 9 through 20. Enter here and on page 1, line 4...... 24 Total special deductions. Add lines 9 through 22, column (c). Enter here and on page 1, line 29b ......... Form 1120 (2018) Form 1120 (2018) Kingfisher Corporation 11-1111113 Page 3 Schedule J Tax Computation and Payment (see instructions) Part I-Tax Computation 1 Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)). See instructions 2 Income tax. See instructions ...................................................... 3 Base erosion minimum tax (attach Form 8991) ............. 4 Add lines 2 and 3.... 5a Foreign tax credit (attach Form 1118)...................... b Credit from Form 8834 (see instructions) ..... c General business credit (attach Form 3800) ............... 5c 50 5e d Credit for prior year minimum tax (attach Form 8827)....... e Bond credits from Form 8912............ 6 Total credits. Add lines 5a through 5e ..................... 7 Subtract line 6 from line 4... 8 Personal holding company tax (attach Schedule PH (Form 1120))..... 9a Recapture of investment credit (attach Form 4255). b Recapture of low-income housing credit (attach Form 8611) ......... c Interest due under the look-back method-completed long-term contracts (attach Form 8697) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d Interest due under the look back method-income forecast method (attach Form 9e e Alternative tax on qualifying shipping activities (attach Form 8902) ......... f Other (see instructions-attach statement) ....... 10 Total. Add lines 9a through 9f ..... 1 11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 ............................ 11 Part II-Section 965 Payments (see instructions) 11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 ..... 11 Part II-Section 965 Payments (see instructions) 12 2018 net 965 tax liability paid from Form 965-B, Part II, column (k), line 2. Enter here and on page 1, line 32 | 12 Part III-Payments, Refundable Credits, and Section 965 Net Tax Liability 13 2017 overpayment credited to 2018 ........ 13 14 2018 estimated tax payments .................................................. 14 15 2018 refund applied for on Form 4466 .......... 15 16 Combine lines 13, 14, and 15 . ........ 16 17 17 Tax deposited with Form 7004 .............. 18 Withholding (see instructions) .................. 18 19 Total payments. Add lines 16, 17, and 18 ............ 19 20 Refundable credits from: a Form 24 3 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a . . . . . . . . D Form 4 1 3 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20b . . . . . . . . c Form 8827, line 8c ......................................... 200 d Other (attach statement-see instructions) ......................... 20d 21 22 21 Total credits. Add lines 20a through 20d. 22 2018 net 965 tax liability from Form 965-B, Part I, column (d), line 2. See instructions ............. 23 Total payments, credits, and section 965 net tax liability. Add lines 19, 21, and 22. Enter here and on page 1, line 33 .............................................................. 23 Form 1120 (2018) 9 Enter the amount of tax-exempt interest received or accrued during the tax year $ 10 Enter the number of shareholders at the end of the tax year (if 100 or fewer) Form 1120 (2018) Kingfisher Corporation 11-1111113 Page 6 Schedule L Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash . . .. . . .. . . .. . . .. . . .. . . .. . .. . . .. 2a Trade notes and accounts receivable ...... b Less allowance for bad debts ......... 3 Inventories .......................... 4 U.S. government obligations . . . . . . . . . . . . . 5 Tax-exempt securities (see instructions) 6 Other current assets (attach statement) .... 7 Loans to shareholders . . 8 9 Mortgage and real estate loans .......... Other investments (attach statement) ..... 10a Buildings and other depreciable assets ..... b Less accumulated depreciation .... 11a Depletable assets . . . . . . . . . . . . . . . . . . ... b Less accumulated depletion .............. 12 Land (net of any amortization) ........... 13a Intangible assets (amortizable only) ....... b Less accumulated amortization . . . . . . . . . . . 14 Other assets (attach statement) .......... 15 Total assets ..... Liabilities and Shareholders' Equity Accounts payable .... 16 17 Mortgages, notes, bonds payable in less than 1 year 18 Other current liabilities (attach statement)... 19 Loans from shareholders 20 Mortgages, notes, bonds payable in 1 year or more 21 Other liabilities (attach statement) ........ 22 Capital stock: a Preferred stock ........ b Common stock . . . . . ... 23 Additional paid-in capital . . . . . . . . . . . . . . Retained earnings-Appropriated (attach statement) 24 25 Retained earnings-Unappropriated . . . . . . . 26 Adjustments to shareholders' equity (attach statement) 27 Less cost of treasury stock .............. 28 Total liabilities and shareholders' equity .... Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. 1 Net income (loss) per books . . . . . . . . . . 7 Income recorded on books this year not included on this return (itemize): 2 Federal income tax per books . . . . . . . Tax-exempt interest ..$___. 3 Excess of capital losses over capital gains - - - -------- 4 Income subject to tax not recorded on books this year (itemize): - - - - - - - - - - - - - - - - - - - - - - - - - - Deductions on this return not charged against book income this year (itemize): 5 ---------------------- Expenses recorded on books this year not deducted on this return (itemize): a Depreciation ........$__ a Depreciation . . . . . . . . . . . .$___ b Charitable contributions $ _- ----------------- b Charitable contributions ..$--- c Travel and entertainment. $_. 9 Add lines 7 and 8 ................... - - - - - - - - - - - - - - - - - - 6 Add lines 1 through 5 ............ 10 Income (page 1, line 28)-line 6 less line 9 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 1 Balance at beginning of year ... 5 Distributions: a Cash . . . . . . . . . . . . . 2 Net income (loss) per books ........... b Stock ........... 3 Other increases (itemize): -- c Property ........ 6 Other decreases (itemize):---- 7 Add lines 5 and 6 ............. ------------- 4 Add lines 1, 2, and 3.... 8 Balance at end of year (line 4 less line 7) Form 1120 (2018) Instructions Note: This problem is for the 2018 tax year. On February 12, 2005, Nancy Trout and Delores Lake formed 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 determined using FIFO and the lower of cost or market method. Kingfisher uses the straight-line method of deprecation for book purposes and accelerated depreciation (MACRS) for tax purposes. During 2018, the corporation distributed cash dividends of $80,000. Income Statement $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 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 U.S. 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: Business loans Loan to purchase state bonds Advertising Rental expense Depreciation* Charitable contributions Employee benefit programs Premiums on term life insurance policies on lives of Janet Morton and Kim Wong; Pet Kingdom is the designated beneficiary Total expenses Net income before taxes Federal income tax Net income per books $320,000 290,000 85,000 56,000 $12,000 8,000 20,000 6,000 68,000 40,000 15,000 24,000 16,000 (940,000) $504,000 (106,680) $397,320 * You are not provided enough detailed information to complete a Form 4562 (depreciation). If you solve this problem using Intuit ProConnect, enter the amount of deprecation on line 20 of Form 1120. Assets Cash Trade notes and accounts receivable Inventories State bonds Federal income tax refund Certificates of deposit Stock investments Buildings and other depreciable assets Accumulated depreciation Land Other assets Balance Sheet January 1, 2018 $380,000 308,400 900,000 160,000 -0- 140,000 300,000 240,000 (88,000) 20,000 3,600 $2,363,200 December 31, 2018 $337,300 480,280 1,012,000 160,000 1,320 140,000 300,000 240,000 (128,800) 20,000 2,000 $2,564,100 Total assets Liabilities and Equity Accounts payable Other current liabilities Mortgages Capital stock Retained earnings Total liabilities and equity January 1, 2018 $300,000 80,300 210,000 500,000 1,272,900 $2,363,200 December 31, 2018 $233,880 40,000 200,000 500,000 1,590,220 $2,564,100 Required: During 2018, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare a Form 1120 for Kingfisher for tax year 2018. If an amount box does not require an entry or the answer is zero, enter "O". Enter all amounts as positive numbers, unless otherwise instructed. If required, round amounts to the nearest dollar. Make realistic assumptions about any missing data. Complete Form 1120, pages 1, 2 and 3 for Kingfisher Corporation. Form 1120 OMB No. 1545-0123 Department of the Treasury Internal Revenue Service U.S. Corporation Income Tax Return For calendar year 2018 or tax year beginning -----, 2018, ending -----I- Go to www.irs.gov/ Form 1120 for instructions and the latest information. 2018 B Employer identification number 11-1111113 O A Check if: 1a Consolidated return (attach Form 851).. b Lifeonlife consolidated return .. 2 Personal holding co. (attach Sch. PH) .... 3 Personal service corp. (see instructions) ... 4 Schedule M-3 attached TYPE Kingfisher Corporation OR 1717 Main Street PRINT Ely, MN 55731 US C Date incorporated 2/12/2005 D Total assets (see instructions) O E Check if: (1) Initial return (2) Final return (3) Name change (4) Address change la Gross receipts or sales ................................ la b Returns and allowances ................................. c Balance. Subtract line 1b from line 1a .............. 2 Cost of goods sold (attach Form 1125-A) ............................................ 3 Gross profit. Subtract line 2 from line 1c ............................................ 4 Dividends and inclusions(Schedule C, line 23, column(a))................................ Income 5 Interest ........ 6 Gross rents .................................................... 7 Gross royalties ......... 8 Capital gain net income (attach Schedule D (Form 1120)). . . . . . . . . . . . . . . . . 9 Net gain or loss) from Form 4797, Part II, line 17 (attach Form 4797) .................. 10 Other income (see instructions-attach statement) ......... 11 Total income. Add lines 3 through 10 ................... 10 11 11 Total income. Add lines 3 through 10........ 12 Compensation of officers (see instructions-attach Form 1125-E) ....... 13 Salaries and wages (less employment credits) ......... 14 Repairs and maintenance ....................................................... 15 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Rents ..................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Taxes and licenses ........... 17 18 Interest (see instructions) ..................... 18 19 Charitable contributions . 20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562). Deductions (See instructions for limitations on deductions.) 21 Depletion ............................................................... 21 22 Advertising 22 23 Pension, profit-sharing, etc., plans .................................. 23 24 Employee benefit programs ....... 25 Reserved for future use.............. 26 Other deductions (attach statement) .............. 24 25 26 27 Total deductions. Add lines 12 through 26 ........ 27 28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 29a Net operating loss deduction (see instructions) ............... 29a b Special deductions (Schedule C, line 24, column (c))........... 29b C Add lines 29a and 290 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Taxable income. Subtract line 29c from line 28. See instructions ........... 30 31 Total tax (Schedule J, Part I, line 11) ...... .......... 31 32 2018 net 965 tax liability paid (Schedule J, Part II, line 12) .......... ......... 32 Tax, Refundable Credits, and Payments 33 Total payments, credits, and section 965 net tax liability (Schedule J, Part III, line 23)........ 33 34 Estimated tax penalty. See instructions. Check if Form 2220 is attached ..... cu . . . . . . 34 . . . . . . . . . 35 Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed ...... 35 Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid .... 36 37 Enter amount from line 36 you want: Credited to 2019 estimated tax Refunded 37 Form 1120 (2018) Kingfisher Corporation 11-1111113 Page 2 Schedule C Dividends, Inclusions, and Special Deductions (see instructions) (a) Dividends and inclusions (b) Percentage (c) Special deductions (a) (b) 1 50 Dividends from less-than-20%-owned domestic corporations (other than debt- financed stock).... Dividends from 20%-or-more-owned domestic corporations (other than debt- financed stock)... 2 65 see 3 Dividends on certain debt-financed stock of domestic and foreign corporations instructions 4 Dividends on certain preferred stock of less-than-20%-owned public utilities 23.3 5 Dividends on certain preferred stock of 20%-or-more-owned public utilities 26.7 6 Dividends from less-than-20%-owned foreign corporations and certain FSCS 50 7 Dividends from 20%-or-more-owned foreign corporations and certain FSCs 65 8 Dividends from wholly owned foreign subsidiaries ... 100 9 Subtotal. Add lines 1 through 8. See instructions for limitations ..... see instructions 9 Subtotal. Add lines 1 through 8. See instructions for limitations ... see instructions 100 100 100 10 Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 ...... 11 Dividends from affiliated group members .. 12 Dividends from certain FSCS .......... 13 Foreign-source portion of dividends received from a specified 10%-owned foreign corporation (excluding hybrid dividends) (see instructions) .... 14 Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13 (including any hybrid dividends) ..... see 15 Section 965(a) inclusion .............. instructions 16a Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471) (see instructions) ........ 100 b Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions) ...... c Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17 (attach Form(s) 5471) (see instructions) .................... 17 Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992) 18 Gross-up for foreign taxes deemed paid .............. 19 IC-DISC and former DISC dividends not included on line 1, 2, or 3 ....... 20 Other dividends ........................ 21 Deduction for dividends paid on certain preferred stock of public utilities .... 22 Section 250 deduction (attach Form 8993) .... 23 Total dividends and inclusions. Add lines 9 through 20. Enter here and on page 1, line 4...... 24 Total special deductions. Add lines 9 through 22, column (c). Enter here and on page 1, line 29b ......... Form 1120 (2018) Form 1120 (2018) Kingfisher Corporation 11-1111113 Page 3 Schedule J Tax Computation and Payment (see instructions) Part I-Tax Computation 1 Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)). See instructions 2 Income tax. See instructions ...................................................... 3 Base erosion minimum tax (attach Form 8991) ............. 4 Add lines 2 and 3.... 5a Foreign tax credit (attach Form 1118)...................... b Credit from Form 8834 (see instructions) ..... c General business credit (attach Form 3800) ............... 5c 50 5e d Credit for prior year minimum tax (attach Form 8827)....... e Bond credits from Form 8912............ 6 Total credits. Add lines 5a through 5e ..................... 7 Subtract line 6 from line 4... 8 Personal holding company tax (attach Schedule PH (Form 1120))..... 9a Recapture of investment credit (attach Form 4255). b Recapture of low-income housing credit (attach Form 8611) ......... c Interest due under the look-back method-completed long-term contracts (attach Form 8697) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d Interest due under the look back method-income forecast method (attach Form 9e e Alternative tax on qualifying shipping activities (attach Form 8902) ......... f Other (see instructions-attach statement) ....... 10 Total. Add lines 9a through 9f ..... 1 11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 ............................ 11 Part II-Section 965 Payments (see instructions) 11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 ..... 11 Part II-Section 965 Payments (see instructions) 12 2018 net 965 tax liability paid from Form 965-B, Part II, column (k), line 2. Enter here and on page 1, line 32 | 12 Part III-Payments, Refundable Credits, and Section 965 Net Tax Liability 13 2017 overpayment credited to 2018 ........ 13 14 2018 estimated tax payments .................................................. 14 15 2018 refund applied for on Form 4466 .......... 15 16 Combine lines 13, 14, and 15 . ........ 16 17 17 Tax deposited with Form 7004 .............. 18 Withholding (see instructions) .................. 18 19 Total payments. Add lines 16, 17, and 18 ............ 19 20 Refundable credits from: a Form 24 3 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20a . . . . . . . . D Form 4 1 3 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20b . . . . . . . . c Form 8827, line 8c ......................................... 200 d Other (attach statement-see instructions) ......................... 20d 21 22 21 Total credits. Add lines 20a through 20d. 22 2018 net 965 tax liability from Form 965-B, Part I, column (d), line 2. See instructions ............. 23 Total payments, credits, and section 965 net tax liability. Add lines 19, 21, and 22. Enter here and on page 1, line 33 .............................................................. 23 Form 1120 (2018) 9 Enter the amount of tax-exempt interest received or accrued during the tax year $ 10 Enter the number of shareholders at the end of the tax year (if 100 or fewer) Form 1120 (2018) Kingfisher Corporation 11-1111113 Page 6 Schedule L Balance Sheets per Books Beginning of tax year End of tax year Assets (a) (b) (c) (d) 1 Cash . . .. . . .. . . .. . . .. . . .. . . .. . .. . . .. 2a Trade notes and accounts receivable ...... b Less allowance for bad debts ......... 3 Inventories .......................... 4 U.S. government obligations . . . . . . . . . . . . . 5 Tax-exempt securities (see instructions) 6 Other current assets (attach statement) .... 7 Loans to shareholders . . 8 9 Mortgage and real estate loans .......... Other investments (attach statement) ..... 10a Buildings and other depreciable assets ..... b Less accumulated depreciation .... 11a Depletable assets . . . . . . . . . . . . . . . . . . ... b Less accumulated depletion .............. 12 Land (net of any amortization) ........... 13a Intangible assets (amortizable only) ....... b Less accumulated amortization . . . . . . . . . . . 14 Other assets (attach statement) .......... 15 Total assets ..... Liabilities and Shareholders' Equity Accounts payable .... 16 17 Mortgages, notes, bonds payable in less than 1 year 18 Other current liabilities (attach statement)... 19 Loans from shareholders 20 Mortgages, notes, bonds payable in 1 year or more 21 Other liabilities (attach statement) ........ 22 Capital stock: a Preferred stock ........ b Common stock . . . . . ... 23 Additional paid-in capital . . . . . . . . . . . . . . Retained earnings-Appropriated (attach statement) 24 25 Retained earnings-Unappropriated . . . . . . . 26 Adjustments to shareholders' equity (attach statement) 27 Less cost of treasury stock .............. 28 Total liabilities and shareholders' equity .... Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. 1 Net income (loss) per books . . . . . . . . . . 7 Income recorded on books this year not included on this return (itemize): 2 Federal income tax per books . . . . . . . Tax-exempt interest ..$___. 3 Excess of capital losses over capital gains - - - -------- 4 Income subject to tax not recorded on books this year (itemize): - - - - - - - - - - - - - - - - - - - - - - - - - - Deductions on this return not charged against book income this year (itemize): 5 ---------------------- Expenses recorded on books this year not deducted on this return (itemize): a Depreciation ........$__ a Depreciation . . . . . . . . . . . .$___ b Charitable contributions $ _- ----------------- b Charitable contributions ..$--- c Travel and entertainment. $_. 9 Add lines 7 and 8 ................... - - - - - - - - - - - - - - - - - - 6 Add lines 1 through 5 ............ 10 Income (page 1, line 28)-line 6 less line 9 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 1 Balance at beginning of year ... 5 Distributions: a Cash . . . . . . . . . . . . . 2 Net income (loss) per books ........... b Stock ........... 3 Other increases (itemize): -- c Property ........ 6 Other decreases (itemize):---- 7 Add lines 5 and 6 ............. ------------- 4 Add lines 1, 2, and 3.... 8 Balance at end of year (line 4 less line 7) Form 1120 (2018) Instructions Note: This problem is for the 2018 tax year. On February 12, 2005, Nancy Trout and Delores Lake formed 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 determined using FIFO and the lower of cost or market method. Kingfisher uses the straight-line method of deprecation for book purposes and accelerated depreciation (MACRS) for tax purposes. During 2018, the corporation distributed cash dividends of $80,000. Income Statement $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 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 U.S. 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: Business loans Loan to purchase state bonds Advertising Rental expense Depreciation* Charitable contributions Employee benefit programs Premiums on term life insurance policies on lives of Janet Morton and Kim Wong; Pet Kingdom is the designated beneficiary Total expenses Net income before taxes Federal income tax Net income per books $320,000 290,000 85,000 56,000 $12,000 8,000 20,000 6,000 68,000 40,000 15,000 24,000 16,000 (940,000) $504,000 (106,680) $397,320 * You are not provided enough detailed information to complete a Form 4562 (depreciation). If you solve this problem using Intuit ProConnect, enter the amount of deprecation on line 20 of Form 1120. Assets Cash Trade notes and accounts receivable Inventories State bonds Federal income tax refund Certificates of deposit Stock investments Buildings and other depreciable assets Accumulated depreciation Land Other assets Balance Sheet January 1, 2018 $380,000 308,400 900,000 160,000 -0- 140,000 300,000 240,000 (88,000) 20,000 3,600 $2,363,200 December 31, 2018 $337,300 480,280 1,012,000 160,000 1,320 140,000 300,000 240,000 (128,800) 20,000 2,000 $2,564,100 Total assets Liabilities and Equity Accounts payable Other current liabilities Mortgages Capital stock Retained earnings Total liabilities and equity January 1, 2018 $300,000 80,300 210,000 500,000 1,272,900 $2,363,200 December 31, 2018 $233,880 40,000 200,000 500,000 1,590,220 $2,564,100 Required: During 2018, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare a Form 1120 for Kingfisher for tax year 2018. If an amount box does not require an entry or the answer is zero, enter "O". Enter all amounts as positive numbers, unless otherwise instructed. If required, round amounts to the nearest dollar. Make realistic assumptions about any missing data