Hi : can you help to prepare Corporate Tax?

On November 1, 2016 Janet Morton and Kim Wong formed Pet Kingdom Inc. to sell pets and pet supplies. Pertinent information regarding Pet King is summarized as follows:

Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX75225; its telephone Number is 21 4-555-221 1.

The employer identification number is 1-1 111111, 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 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.

Depreciation for tax purposes is $136,000. You are not provided enough detailed date to

complete a Form 4562 (depreciation).

The company made payments in 2015 that would require it to file Form(s) 1099, and it had filed all the required Form(s) 1099.

The company paid premiums on term life insurance policies on lives of Janet Morton and Kim Wong; Pet Kingdom is the designated beneficiary.

During 2015, Pet Kingdom made estimated tax payments of $90,000 each quarter to the lRS,

Prepare from 1120 for Pet Kingdom for tax year 2015. (use form Form 1120, Form 1125-A, Schedule G, form 1125-E)

Tax telurn ProJegt Pet Kingdom's financlal statsn'lenk for 2014 are showm below. trncomo Statement January 1,2014. December 3tt 20{4 lncorne $ $ Gross seles $ales returns and allowancos Net sales Cost of goods sold 5,750,000 ._. (200,000) s,s50,000 (2,300,000) Gtoss profit lnterest income 3,250,000 20.000 3,270,000 Totalincome Expenses Salarles - Officers Janet Morton Kim Won Salaries - clerical and sales Taxes (state, loca!, and payroll) Repairs and maintenance lnterest expons6 Advertising Rental expense Deprmiation - book Charitable contributions Employee benefi t programs Premiums on offlcr$' life insurance Total expenses Nel income before taxes Federal income tax NeJ ineome per books $ 282,500 _- -2S2,500 _ 525,000 725,000 238,000 140,000 2'16,000 58,000 109,000 '106,000 38,000 60,000 40,000 Balanee $heet January 1,2014 1,200,000 Cash Accounts receivable 202,5i4 lnventories 2,750,000 Prepaid Federaltax Building and other depreciable assets Accumulated depreciation 5,455,000 0 (606,000) 812,500 140,000 Land Other assets Totalassets Liabllitiee and Equity Decemher 31, 2014 1,037,750 234,5m 3,030,000 11,500 5,455,000 (712,000) 812,500 124.977 _$__= ?lsrugp.January 1,2A14 December 31, 20!4 Accounts payable Other current liabilities 2,284,000 '175,000 1,731,250 155,000 Mortgages 4,625,000 4,575,000 Capitalstock 2,500,000 370,000 2,500,000 1.028.977 Retain earnings Total liabilities and equitY _q__gp54,qqg_ Tax Roturn Project On November 1, 2005, Janet Morton and Kim Wong formed Pet Kingdom, lnc,, to eell pet$ and pet suppties. Pertinent inforrnation regarding Fet King ie surnmarized as follows: r ' . r . r . r r Pet Kingdom's bueiness address is 1010 Northwest Parkway, Dallas, TX75225; its telephone number is 21 4-555-221 1. The employer identification number is 1 1-1 111111 , and the principal business activity code is 453910, Janet and Klrn eaoh own 50Yo of the common stock; Janot is presidenl and Kim is vice presfdent of the cornpany, No other class of stock is authorized. Bcth Janet and Kim are flllltime employees of Pet Kingdom. Janet's Social Secunity number is 123-45-6789, and Kim's Social $ecurity number is 987-65-4321. Pet Kingdom iE an accrual method, calendar year taxpayer. lnventories are determined using FIFO and the lower of cost or market method, Pet Kingdom uses the straight-line method of depreciation {or book purpos*s and accelerated depreoiation (MACR$) for lax purposes, Depreciation for tax purposes is $136,000. You are not pr.ovided enough detailed date to complete a Form 4562 (depreciation). The cornpany made payments in 2014 that would require it to flle Form(s) 1099, and it had filed all the required Form(s) 1099. The con-rpaily paid premiums 0n terrn life insurance polioies on lives of Janet Morton and Kim Wong; Pet Kingdom is the designated beneficiary. During 2014, Pet Kingdom rnade estirnated tax payments of $90,000 each quader to the lRS, Prepane Form 1'120 for Pet Kingdom for tax year 20'14