Note: This problem is for the 2021 tax year. On November 1, 2010, Janet Morton and Kim Wong formed Pet Kingdom, Inc., to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is summarized as follows: - Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225 ; its telephone number is (214) 555-2211; and its email address is petkingdom@pki.com. - The employer identification number is 11-1111112, and the principal business activity code is 453910. - Janet and Kim each own 50% of the common stock; Janet is president and Kim is vice president of the company. No other class of stock is authorized. - Both Janet and Kim are full-time employees of Pet Kingdom. Janet's Social Security number is 123-45-6788, and Kim's Social Security number is 123-45-6787. - Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. - During 2021, the corporation distributed cash dividends of $250,000. Gross profit $3,250,000 Dividends received from stock investments in less-than-20\%- owned U.S. corporations 43,750 Interest income: State bonds Certificates of deposit Total income \begin{tabular}{rr} $15,000 \\ 20,000 & 35,000 \\ \hline & $3,328,750 \end{tabular} Expenses Salaries-officers: Janet Morton $262,500 Kim Wong 262,500$525,000 Salaries-clerical and sales 725,000 Taxes (state, local, and payroll) Repairs and maintenance 238,000 Interest expense: Loan to purchase state bonds 140,000 Other business loans Advertising Rental expense Depreciation* Charitable contributions (cash) $9,000207,000216,00058,000109,000106,00038,00060,000 Employee benefit programs (depreciation). If you solve this problem using Intuit ProConnect, enter the amount of depreciation on line 20 of Form 1120 During 2021 , Pet Kingdom made estimated tax payments of $56,000 each quarter to the IRS. Prepare Pet Kingdom'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 Pet Kingdom's Schedule G for tax year 2021 . Certain Individuals and Estates Owning the Corporation's Voting Stock. (Form 1120, Schedule K, Question 4b). Complete columns (i) through (iv) below for any individual or estate that owns directly 20% or more, or owns, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote (see instructions). Note: This problem is for the 2021 tax year. On November 1, 2010, Janet Morton and Kim Wong formed Pet Kingdom, Inc., to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is summarized as follows: - Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225 ; its telephone number is (214) 555-2211; and its email address is petkingdom@pki.com. - The employer identification number is 11-1111112, and the principal business activity code is 453910. - Janet and Kim each own 50% of the common stock; Janet is president and Kim is vice president of the company. No other class of stock is authorized. - Both Janet and Kim are full-time employees of Pet Kingdom. Janet's Social Security number is 123-45-6788, and Kim's Social Security number is 123-45-6787. - Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. - During 2021, the corporation distributed cash dividends of $250,000. Gross profit $3,250,000 Dividends received from stock investments in less-than-20\%- owned U.S. corporations 43,750 Interest income: State bonds Certificates of deposit Total income \begin{tabular}{rr} $15,000 \\ 20,000 & 35,000 \\ \hline & $3,328,750 \end{tabular} Expenses Salaries-officers: Janet Morton $262,500 Kim Wong 262,500$525,000 Salaries-clerical and sales 725,000 Taxes (state, local, and payroll) Repairs and maintenance 238,000 Interest expense: Loan to purchase state bonds 140,000 Other business loans Advertising Rental expense Depreciation* Charitable contributions (cash) $9,000207,000216,00058,000109,000106,00038,00060,000 Employee benefit programs (depreciation). If you solve this problem using Intuit ProConnect, enter the amount of depreciation on line 20 of Form 1120 During 2021 , Pet Kingdom made estimated tax payments of $56,000 each quarter to the IRS. Prepare Pet Kingdom'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 Pet Kingdom's Schedule G for tax year 2021 . Certain Individuals and Estates Owning the Corporation's Voting Stock. (Form 1120, Schedule K, Question 4b). Complete columns (i) through (iv) below for any individual or estate that owns directly 20% or more, or owns, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote (see instructions)
