Note: This problem is for the 2020 tax year. On February 12, 2006, 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 2020, the corporation distributed cash dividends of $80,000. Kingfisher's financial statements for 2020 are shown below. Income Gross sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends received from stock Interest income: investments in less-than-20%- owned U.S. corporations State bonds Certificates of deposit Income Statement $14,000 10,000 $2,408,000 (80,000) $2,328,000 (920,000) $1,408,000 12,000 24,000 Total income Salaries-officers: Nancy Trout Delores Lake Salaries-clerical and sales Taxes (state, local, and payroll) Repairs and maintenance Interest expense: Business loans Loan to purchase state bonds Advertising Rental expense Expenses $160,000 160,000 $12,000 8,000 $320,000 290,000 85,000 56,000 20,000 6,000 68,000 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). If you solve the problem using Intuit ProConnnect, enter the amount of depreciation on line 20 of Form 1120. Balance Sheet Instructions Assets Cash Trade notes and accounts receivable Inventories State bonds Federal income tax refund Certificates of deposit Stock investments Buildings and other depreciable assets Accumulated depreciation Land Other assets. Balance Sheet January 1, 2020 $380,000 308,400 900,000 160,000 -0- 140,000 300,000 240,000 (88,800) 20,000 3,600 December 31, 2020 $337,300 480,280 1,012,000 160,000 1,320 140,000 300,000 240,000 (128,800) 20,000 2,000 OURLY USLO Total assets $2,363,200 $2,564,100 Liabilities and Equity January 1, 20 December 31, 2020 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 2020, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare Kingfisher's corporate tax return for year 2020 using Form 1120 (and any other appropriate forms and schedules). Ad Form 1120, pages 1, 2 and 31 consolidated recom Of OR PRINT Ely, MN 55731 MPersonal holding co. cattach Sch. PH).... RePersonal service corp. (see instrs). RSchedule M-3 Dattached E Check if: ye 1717 Main Street (2) (1) Initial return. 1a Gross receipts or sales b Returns and allowances c Balance. Subtract line 1b from line la. 2 Cost of goods sold (attach Form 1125-A). Final return (3) ia ib 02/12/2006 D Total assets (see instructions) $ Name change, (4) ic Address change orm 1120, pages 4, 5 and 6 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Schedule L, Line 25) 1 Balance at beginning of year. WARRILA 5 Distributions: a Cash 2 Net income (loss) per books b Stock c Property 3 Other increases (itemize): 6 Other decreases (itemize): 7 Add lines 5 and 6 4 Add lines 1, 2, and 3 Balance at end of year (line 4 less line 7) Form 1120 (20 Form 1125-A Name Kingfisher Corporation 1 Inventory at beginning of year 2 Purchases. 3 Cost of labor 4 Additional section 263A costs (attach schedule) 5 Other costs (attach schedule). 6 Total. Add lines 1 through 5..... 7 7 Inventory at end of year 8 Cost of goods sold. Subtract line 7 from line 6, Enter here and on Form 1120, page 1, line 1 2 3 4 5 6 Employer identification number 11-1111113 Schedule G Part II Certain Individuals and Estates Owning the Corporation's Voting Stock. (Form 1120, Schedule K, Question 4b). Comple columns (1) through (iv) below for any individual or estate that owns directly 20% or more, or owns, directly or indirectly, 50% more of the total voting power of all classes of the corporation's stock entitled to vote (see instructions). (1) Name of Individual or Estate (iv) Percentage Owr (6) Identifying Number (i) Country of Citizenship (if any) (see instructions) in Voting Stock Nancy Trout. 123-45-6788 United States Delores Lake 123-45-6787 United States orm 1125E Kingfisher Corporation 11-1111113 Note: Complete Form 1125-E only if total receipts are $500,000 or more. See instructions for definition of total receipts. Percent of stock owned 1 (a) Name of officer (b) Social security number (c) Percent of time devoted to business (d) Common (e) Preferred Nancy Trout 123-45-6788 Delores Lake 123-45-6787 % % % % % % % % % % % % %%% % % % % 2 (1) Amount compensatic 2020 Statement 1 Form 1120, Schedule L, Line 6 Other Current Assets Certificates of Deposit Prepaid Federal Tax Stock Investments Federal Statements Kingfisher Corporation I Beginning Page 11-1111 Ending 4b). recti kenta oting