Note: This problem is for the 2019 tax year.

On February 12, 2005, Nancy Trout and Delores Lake formed Kingfisher Corporation to sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follows:

• Kingfisher's business address is 1717 Main Street, Ely, MN 55731; its telephone number is (218) 555-2211; and its e-mail address is kingfisher@kf.com.
• The employer identification number is 11-1111113, and the principal business activity code is 451110.
• Nancy owns 50% of the common stock and is president of the company, and Delores owns 50% of the common stock and is vice president of the company. No other class of stock is authorized.
• Both Nancy and Delores are full-time employees of Kingfisher. Nancy's Social Security number is 123-45-6788, and Delores's Social Security number is 123-45-6787.
• Kingfisher is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Kingfisher uses the straight-line method of deprecation for book purposes and accelerated depreciation (MACRS) for tax purposes.
• During 2019, the corporation distributed cash dividends of $80,000.

Kingfisher's financial statements for 2019 are shown below and on the next page.

Income Statement
Income
Gross sales					$2,408,000
Sales returns and allowances					(80,000)
Net sales					$2,328,000
Cost of goods sold					(920,000)
Gross profit					$1,408,000
Dividends received from stock
investments in less-than-20%- owned U.S. corporations					12,000
Interest income:
State bonds	$14,000
Certificates of deposit	10,000				24,000
Total income					$1,444,000
Expenses
Salariesofficers:
Nancy Trout	$160,000
Delores Lake	160,000		$320,000
Salariesclerical and sales			290,000
Taxes (state, local, and payroll)			85,000
Repairs and maintenance			56,000
Interest expense:
Business loans	$12,000
Loan to purchase state bonds	8,000		20,000
Advertising			6,000
Rental expense			68,000
Depreciation*			40,000
Charitable contributions			15,000
Employee benefit programs			24,000
Premiums on term life insurance
policies on lives of Nancy Trout and Delores Lake; Kingfisher is the designated beneficiary			16,000
Total expenses					(940,000)
Net income before taxes					$504,000
Federal income tax					(106,680)
Net income per books					$397,320
* You are not provided enough detailed information to complete a Form 4562 (depreciation).

Balance Sheet
Assets	January 1, 2019				December 31, 2019
Cash		$380,000				$337,300
Trade notes and accounts receivable		308,400				480,280
Inventories		900,000				1,012,000
State bonds		160,000				160,000
Federal income tax refund		-0-				1,320
Certificates of deposit		140,000				140,000
Stock investments		300,000				300,000
Buildings and other depreciable assets		240,000				240,000
Accumulated depreciation		(88,800)				(128,800)
Land		20,000				20,000
Other assets		3,600				2,000
Total assets		$2,363,200				$2,564,100
Liabilities and Equity	January 1, 2019				December 31, 2019
Accounts payable		$300,000				$233,880
Other current liabilities		80,300				40,000
Mortgages		210,000				200,000
Capital stock		500,000				500,000
Retained earnings		1,272,900				1,590,220
Total liabilities and equity		$2,363,200				$2,564,100

Required:

During 2019, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare a Form 1120 for Kingfisher for tax year 2019.

• 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.

Form 1125E for Kingfisher Corporation for tax year 2019.

Form 1125-E (Rev. October 2016) Department of the Treasury Internal Revenue Service

Compensation of Officers Attach to Form 1120, 1120-C, 1120-F, 1120-REIT, 1120-RIC, or 1120S Information about Form 1125-E and its separate instructions is at www.irs.gov/form1125e.

OMB No. 1545-0123

Name Kingfisher Corporation

Employer identification number 11-1111113

Note: Complete Form 1125-E only if total receipts are $500,000 or more. See instructions for definition of total receipts.

1 (a) Name of officer	(b) Social security number	(c) Percent of time devoted to business	Percent of stock owned		(f) Amount of compensation
			(d) Common	(e) Preferred
Nancy Trout	123-45-6788	%	%	%
Delores Lake	123-45-6787	%	%	%
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2	Total compensation of officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2
3	Compensation of officers claimed on Form 1125-A or elsewhere on return . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
4	Subtract line 3 from line 2. Enter the result here and on Form 1120, page 1, line 12 or the appropriate line of your tax return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4

BAA For Paperwork Reduction Act Notice, see separate instructions.

Form 1125-E (Rev. 10-2017)