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. Schedule M-3 Complete Pet Kingdom's Schedule M-3 for tax year 2021. Check applicable box(es): (1) Non-consolidated return (2) Consolidated return (Form 1120 only) (3) Mixed 1120/L/PC group (4) Dormant subsidiaries schedule attached Part I Financial Information and Net Income (Loss) Reconciliation (see instructions) 1a Did the corporation file SEC Form 10K for its income statement period ending with or within this tax year? Yes. Skip lines 1b and 1c and complete lines 2a through 11 with respect to that SEC Form 10-K. y No. Go to line 1b. See instructions if multiple non-tax-basis income statements are prepared. b Did the corporation prepare a certified audited non-tax-basis income statement for that period? Yes. Skip line 1c and complete lines 2a through 11 with respect to that income statement. No. Go to line 1c. c Did the corporation prepare a non-tax-basis income statement for that period? Yes. Complete lines 2a through 11 with respect to that income statement. No. Skio lines 2a throuah 3c and enter the corboration's net income (loss) ber its books and records on line 4a. b Has the corporation's income statement been restated for the income statement period on line 2a? Yes. (If "Yes," attach an explanation and the amount of each item restated.) No. c Has the corporation's income statement been restated for any of the five income statement periods immediately preceding the period line 2a ? Yes. (If "Yes," attach an explanation and the amount of each item restated.) No. 3a Is any of the corporation's voting common stock publicly traded? Yes. No. If "No," go to line 4a. b Enter the symbol of the corporation's primary U.S. publicly traded voting common stock.......... c Enter the nine-digit CUSIP number of the corporation's primary publicly traded voting common stock .... 4a Worldwide consolidated net income (loss) from income statement b Indicate accounting standard used for line 4a (see instructions): (1) GAAP (2) IFRS (3) Statutory (4) Tax-Basis (5) Other (specify) 5a Net income from nonincludible foreign entities (attach statement) ..................... b Net loss from nonincludible foreign entities (attach statement and enter as a positive amount) ...... 6a Net income from nonincludible U.S. entities (attach statement) \begin{tabular}{|c|c|} \hline 4a & \\ \hline \\ \hline 5a & ( \\ \hline 5b & \\ \hline 6a & ( \\ \hline \end{tabular} 2 Enter the total amount (not just the corporation's share) of the assets and liabilities of all entities included or removed on the following lines. 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. Schedule M-3 Complete Pet Kingdom's Schedule M-3 for tax year 2021. Check applicable box(es): (1) Non-consolidated return (2) Consolidated return (Form 1120 only) (3) Mixed 1120/L/PC group (4) Dormant subsidiaries schedule attached Part I Financial Information and Net Income (Loss) Reconciliation (see instructions) 1a Did the corporation file SEC Form 10K for its income statement period ending with or within this tax year? Yes. Skip lines 1b and 1c and complete lines 2a through 11 with respect to that SEC Form 10-K. y No. Go to line 1b. See instructions if multiple non-tax-basis income statements are prepared. b Did the corporation prepare a certified audited non-tax-basis income statement for that period? Yes. Skip line 1c and complete lines 2a through 11 with respect to that income statement. No. Go to line 1c. c Did the corporation prepare a non-tax-basis income statement for that period? Yes. Complete lines 2a through 11 with respect to that income statement. No. Skio lines 2a throuah 3c and enter the corboration's net income (loss) ber its books and records on line 4a. b Has the corporation's income statement been restated for the income statement period on line 2a? Yes. (If "Yes," attach an explanation and the amount of each item restated.) No. c Has the corporation's income statement been restated for any of the five income statement periods immediately preceding the period line 2a ? Yes. (If "Yes," attach an explanation and the amount of each item restated.) No. 3a Is any of the corporation's voting common stock publicly traded? Yes. No. If "No," go to line 4a. b Enter the symbol of the corporation's primary U.S. publicly traded voting common stock.......... c Enter the nine-digit CUSIP number of the corporation's primary publicly traded voting common stock .... 4a Worldwide consolidated net income (loss) from income statement b Indicate accounting standard used for line 4a (see instructions): (1) GAAP (2) IFRS (3) Statutory (4) Tax-Basis (5) Other (specify) 5a Net income from nonincludible foreign entities (attach statement) ..................... b Net loss from nonincludible foreign entities (attach statement and enter as a positive amount) ...... 6a Net income from nonincludible U.S. entities (attach statement) \begin{tabular}{|c|c|} \hline 4a & \\ \hline \\ \hline 5a & ( \\ \hline 5b & \\ \hline 6a & ( \\ \hline \end{tabular} 2 Enter the total amount (not just the corporation's share) of the assets and liabilities of all entities included or removed on the following lines