John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303. Premium's S election was made on January 15, 2010, its date of incorporation.

The following information was taken from the company's 2016 income statement. Premium's book income for the year was $704,574.

Interest income $ 100,000 Gross sales receipts 2,410,000 Beginning inventory 9,607 Direct labor (203,102) Direct materials purchased (278,143) Direct other costs (249,356) Ending inventory 3,467 Salaries and wages (442,103) Officers' salaries ($75,000 each to Parsons and Smith) (150,000), Repairs (206,106) Depreciation expense, tax and book (15,254) Interest expense (35,222) Rent expense (operating) (40,000) Taxes (65,101) Charitable contributions (cash) (20,000) Advertising expenses (20,000) Payroll penalties (15,000) Other deductions (59,899).

A 2016 comparative balance sheet appears below.

January 1 December 1

Cash $47,840 $ ?

Accounts Receivable 93,100 123,104

Inventories 9,607 3,467

Prepaid Expenses 8,333 17,582

Building and Equipment 138,203 185,348

Accumulated Depreciation (84,235) (?)

Land 2,000 2,000

Total Assets $214,848 $844,422

Accounts Payable $ 42,500 $ 72,300

Notes Payable (less than 1 yr) 4,500 2,100

Notes Payable (more than 1 yr) 26,700 24,300

Capital Stock 30,000 30,000

Retained Earnings 111,148 ?

Total Liabilites and Capital $214,848 $844,422

Tax Return Problems Premium's accounting firm provides the following additional information. Distributions to shareholders $100,000 Beginning balance, Accumulated adjustments account $111,148.

Using the preceding information, prepare a complete Form 1120S, 1125A, 1125E, and Schedule K1s for John Parsons and George Smith, 5607 20th Street, Cut and Shoot, TX 77303. Do not complete the Form 4562. If any information is missing, make realistic assumptions.