Note: This problem is for the 2019 tax year.

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, 2012, its date of incorporation. The following information was taken from the company's 2019 income statement. Premiums book income for the year was $704,574.

I only need Schedule K1 for John and George please. I have seen this asked several times, but no one is answering for these forms.

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 2019 comparative balance sheet appears below.

	January 1		December 31
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	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.

Cash distributions to shareholders	$100,000
Beginning balance, accumulated adjustments account	111,148

Required:

Using the preceding information, prepare a Form 1120S, Additional Information - Continuation Statement, and Schedule K-1s for John Parsons and George Smith, both of whom live at 5607 20th Street, Cut and Shoot, TX 77303. Do not complete Forms 1125-A, 1125-E, and 4562.

• 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.

I only need Schedule K1 for John and George please. I have seen this asked several times, but no one is answering for these forms.

John/George

Box 1: Ordinary Business Income (Loss): ?/?

Box 4: Interest income: 70,000/30,000

Box F: 70%/30%

Box 12A: 14000/ ?

Box 16 C: Items affecting shareholder basis: ? / ?

Box 16D: ? / ?

Box 17A: ? / ?

Box 17V: ? / ?

Box 17W: ? / ?

If required, round amounts to the nearest dollar.

Note: Box 16: Code C is used to report nondeductible expenses, and Code D is used to report distributions not reported on Form 1099-DIV. Box 17: Code A is used to report Investment income, Code V is used to report Section 199A qualified business income, and Code W is used to report Section 199A W-2 wages from the trade or business.