Kenilworth Corporation owns and operates a garden tool factory. During 2020 the business reported the following property transactions:

1. Sale of an office building for $1,500,000 in October. The building was purchased in 2007 for $950,000. Depreciation of $450,000 has been claimed on the building.

2. Sale of 500 shares of HP common stock for $70 per share in June. The 500 shares were purchased in July 2018 for $120 per share and were held for investment purposes. This sale transaction was reported to Kenilworth on Form 1099-B showing the stock basis was reported to the IRS.

3. Sale of factory equipment in November for $40,000. The machine was purchased in January 2019 for $150,000. Depreciation of $30,000 was claimed on the machine.

4. Sale of office furniture used in the business for $10,500 in November. The furniture was purchased in 2014 for $26,000. $18,000 in depreciation had been claimed on the furniture.

5. Sale of a factory building in May for $1,350,000. The building was purchased in 2012 for $1,250,000. Depreciation of $275,000 was claimed on the building.

6. Sale of copier machine for $45,000 in September. The copier was purchased in February 2020, for $37,500. $4,500 in depreciation was claimed on the machine.

7. Sale of real estate (unimproved) that had been used as an employee parking lot for $160,000 in October. The lot was purchased in 2009 for $100,000.

8. Sale of 1,000 shares of BP common stock for $90 per share in November. The shares were purchased in January, 2020, for $50 per share and were held for investment purposes. This sale transaction was reported to Kenilworth on Form 1099-B showing the stock basis was reported to the IRS.

9. Sale of a factory machine in June for $600,000. The machine was purchased in February 2019 for $468,000. Depreciation of $33,000 was claimed on the machine.

Kenilworth also has a $375,500 capital loss carryforward available from 2019.

The company reported the following net Section 1231 gains and losses in previous years:

2014 $150,000 2017 ($850,000)

2015 ($900,000) 2018 $100,000

2016 $200,000 2019 $350,000

Required: (15.0 points) Using the above information, complete Form 4797, Form 1120 Schedule D, Form 8949, and page 1 of Form 1120 for Kenilworth Corporation for the year 2020. For page 1 of Form 1120, bring the applicable numbers from the two schedules forward to the appropriate lines on page 1 of Form 1120. Kenilworth's employer identification number is 39-896457.

Check Figures: The check figures are:

1. Net Section 1231 gain (before determining any effect from nonrecaptured Section 1231 losses) is $1,342,000, which is also the amount on line 7, Form 4797; and

2. Total ordinary income is $1,292,500, which is also the amount on line 17, Form 4797.