Note: This problem is for the 2021 tax year.

On February 12, 2007, 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 2021, the corporation distributed cash dividends of $80,000.

Kingfisher's financial statements for 2021 are shown below.

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 (cash)			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). If you solve the problem using Intuit ProConnnect, enter the amount of depreciation on line 20 of Form 1120.

Balance Sheet
Assets	January 1, 2021				December 31, 2021
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, 2021				December 31, 2021
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 2021, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare Kingfisher's corporate tax return for tax year 2021 using Form 1120 (and any other appropriate forms and schedules).

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.

Complete Form 1120 , pages 1,2 and 3 for Kingfisher Corporation. orm 1120 Problem Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on Sign all information of which preparer has any knowledge. May the IRS discuss this return 16a Subpart F inclusions derived from the sale by a controlled foreign Part I - Tax Computation Part II - Reserved for Future Use 12 Reserved for future use. Part III - Payments and Refundable Credits 132020 overpayment credited to 2021 142021 estimated tax payments. of all classes of the corporation's stock entitled to vote or at least 25% of the total value of all classes of the corporation's stock? For rules of attribution, see section 318. If "Yes," enter: (a) Percentage owned and (b) Owner's country (c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached 8 Check this box if the corporation issued publicly offered debt instruments with original issue discount ....... If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. 9 Enter the amount of tax-exempt interest received or accrued during the tax year 10 Enter the number of shareholders at the end of the tax year (if 100 or fewer) 11 If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions) If the corporation is filing a consolidated return, the statement required by Regulations section 1.150221(b)(3) must be attached or the election will not be valid. 12 Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. le M-1 Reconciliation of Income (Loss) per Books With Income per Return Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Schedule L, LIne 25 ) 9 a Check all methods used for valuing closing inventory: (i) Cost (ii) Lower of cost or market 7 more Check My Work uses remaining. Statement 2 Form 1120, Schedule L, Line 14 Other Assets Statement 3 Form 1120, Schedule L, Line 18 Other Current Liabilities Complete Form 1120 , pages 1,2 and 3 for Kingfisher Corporation. orm 1120 Problem Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on Sign all information of which preparer has any knowledge. May the IRS discuss this return 16a Subpart F inclusions derived from the sale by a controlled foreign Part I - Tax Computation Part II - Reserved for Future Use 12 Reserved for future use. Part III - Payments and Refundable Credits 132020 overpayment credited to 2021 142021 estimated tax payments. of all classes of the corporation's stock entitled to vote or at least 25% of the total value of all classes of the corporation's stock? For rules of attribution, see section 318. If "Yes," enter: (a) Percentage owned and (b) Owner's country (c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached 8 Check this box if the corporation issued publicly offered debt instruments with original issue discount ....... If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. 9 Enter the amount of tax-exempt interest received or accrued during the tax year 10 Enter the number of shareholders at the end of the tax year (if 100 or fewer) 11 If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions) If the corporation is filing a consolidated return, the statement required by Regulations section 1.150221(b)(3) must be attached or the election will not be valid. 12 Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. le M-1 Reconciliation of Income (Loss) per Books With Income per Return Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Schedule L, LIne 25 ) 9 a Check all methods used for valuing closing inventory: (i) Cost (ii) Lower of cost or market 7 more Check My Work uses remaining. Statement 2 Form 1120, Schedule L, Line 14 Other Assets Statement 3 Form 1120, Schedule L, Line 18 Other Current Liabilities