• John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111120), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303. Premium's S election was made on January 15, 2012, its date of incorporation. The following information was taken from the company's 2021 income statement. 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) Book income 704,574 A comparative balance sheet appears below. January 1, 2021 December 31, 2021 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 year) 4,500 2,100 Notes payable (more than 1 year) 26,700 24,300 Capital stock (100 shares outstanding) 30,000 30,000 Retained earnings $111,148 ? Total liabilities and capital $214,848 $844,422 Premium's accounting firm provides the following additional information. Distributions to shareholders (not reported on Form 1099-DIV and made based on percentage of ownership): $100,000 Beginning balance, Accumulated adjustments account: 111,148 Ordinary business income for QBI: 639,574 W-2 wages for QBI: 795,205 UBIA of qualified property 125,000 Required: Prepare Premium's Form 1120S, Additional Information - Continuation Statement, and Schedule K-1s for John Parsons and George Smith, 5607 20th Street, Cut and Shoot, TX 77303. If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers, unless otherwise instructed. If required, round amounts to the nearest dollar. Make realistic assumptions about any missing data.