need help completing the K-1 Schedules for John and George. Particularly line 17 AC, I also need help with the federal statements because the line I can't figure out is the number I need for the K-1 schedules. Because the gross sale receipts of $2,410,000 isn't the figure that will work out the problem.

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

	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

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

671120

Final K-1

Amended K-1

OMB No. 1545-0123

Schedule K-1 (Form 1120-S)

2021

Part III

Shareholder's Share of Current Year Income,

Deductions, Credits, and Other Items

Department of the Treasury Internal Revenue Service

For calendar year 2021, or tax

1	Ordinary business income (loss) 447,702	13	Credits
2	Net rental real estate income (loss)
3	Other net rental income (loss)
4	Interest income 70,000
5a	Ordinary dividends
5b	Qualified dividends	14	Schedule K-3 is attached if checked . . . . . . . . .
6	Royalties	15	Alternative minimum tax (AMT) items
7	Net short-term capital gain (loss)
8a	Net long-term capital gain (loss)
8b	Collectibles (28%) gain (loss)
8c	Unrecaptured section 1250 gain
9	Net section 1231 gain (loss)	16 C	Items affecting shareholder basis 10,500
10	Other income (loss)	D	70,000
		17 A	Other information 70,000
11	Section 179 deduction	AC
12 A	Other deductions fill in the blank 8277d5f31fc3042_7	V*	STMT
18 More than one activity for at-risk purposes* 19 More than one activity for passive activity purposes*
*See attached statement for additional information.

beginning

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/

ending

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Shareholder's Share of Income, Deductions, Credits, etc. See separate instructions.

Part I Information About the Corporation

A	Corporation's employer identification number 11-1111120

B	Corporation's name, address, city, state, and ZIP code Premium, Inc. 1005 16th Street Cut and Shoot, TX 77303

C	IRS Center where corporation filed return e-file

D	Corporation's total number of shares
	Beginning of tax year . . . . . . . . . . . .	100
	End of tax year . . . . . . . . . . . . . . . .	100

Part II Information About the Shareholder

E	Shareholder's identifying number 123-45-6781

F	Shareholder's name, address, city, state, and ZIP code John Parsons 5607 20th Street Cut and Shoot, TX 77303

G

Current year allocation percentage . . .

70%

H	Shareholder's number of shares
	Beginning of tax year . . . . . . . . . . . .	70
	End of tax year . . . . . . . . . . . . . . . .	70

I	Loans from shareholder
	Beginning of tax year . . . . . . . . . . . .	$
	End of tax year . . . . . . . . . . . . . . . .	$

Statement 3 Form 1120S, Schedule K, Line 17d Other Items and Amounts
Gross Receipts for Section 448(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$