H&R BLOCK X SOFTWARE 1. John Parsons Cl 23-45-6781) and George Smith Cl23-45-6782) are 70% and 30% own- ers, respectively, of Premium, Inc. 011-1111111, a candy company located at 1005 16th Street, Cut and Shoot, TX 77303. Premium's Selection was made on January 15, 2009, its date of incorporation. The following information was taken from the company's 2015 income statement. 100,000 Interest income 2,410,000 Gross sales receipts 9,607 Beginning inventory Direct labor (203,102) (278,143) Direct materials purchased (249,356) Direct other costs Ending inventory 3,467 (442,103) Salaries and wages Officers' salaries ($75,000 each to Parsons and Smith) (150,000) Repairs (206,106) Depreciation expense, tax and book (15,254) (35,222) Interest expense (40,000) Rent expense (operating) Taxes (65,101) (20,000) Charitable contributions (cash) (20,000) Advertising expenses Payroll penalties (15,000) (59,899) Other deductions Book income 704,574 A comparative balance sheet appears below