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, 2009, its date of incorporation. The following information was taken from the company's 2015 income statement.

Interest income$100,000

Gross sales receipts2,410,000

Beginning inventory9,607

Direct labor(203,102)

Direct materials purchased(278,143)

Direct other costs(249,356)

Ending inventory3,467

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 income704,574

A comparative balance sheet appears below.

January 1. 11115 December 31. 11115 lCash $ 41341] 5 ? Ace-aunt receivable 93,101] 123,104 Inventeries 9H1? 3.415? Prepaid expenses 3.333 11532 Building and equipment 1313,1113 135,343 Autumulated depreciatian [134,235] 1?} Land 23111] 2.11m Total assets $214,343 $344422 Ace-aunt payable 5 42,5111] '5 H.301} Mates payable [less than 1 year} 4,5111] 2,101) Mates payable [mare than 1 year] 26,1111] mam Capital stuck SUM!) 3, Retained earnings 111,145 1 Total liabilities and capital $214,343 5344.422