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 StatementIncomeGross sales$2,408,000Sales returns and allowances(80,000)Net sales$2,328,000Cost of goods sold(920,000)Gross profit$1,408,000Dividends received from stockinvestments in less-than-20%- owned U.S. corporations12,000Interest income:State bonds$14,000Certificates of deposit10,00024,000Total income$1,444,000ExpensesSalariesofficers:Nancy Trout$160,000Delores Lake160,000$320,000Salariesclerical and sales290,000Taxes (state, local, and payroll)85,000Repairs and maintenance56,000Interest expense:Business loans$12,000Loan to purchase state bonds8,00020,000Advertising6,000Rental expense68,000Depreciation*40,000Charitable contributions (cash)15,000Employee benefit programs24,000Premiums on term life insurancepolicies on lives of Nancy Trout and Delores Lake; Kingfisher is the designated beneficiary16,000Total expenses(940,000)Net income before taxes$504,000Federal 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 SheetAssetsJanuary 1, 2021December 31, 2021Cash$380,000$337,300Trade notes and accounts receivable308,400480,280Inventories900,0001,012,000State bonds160,000160,000Federal income tax refund-0-1,320Certificates of deposit140,000140,000Stock investments300,000300,000Buildings and other depreciable assets240,000240,000Accumulated depreciation(88,800)(128,800)Land20,00020,000Other assets3,6002,000Total assets$2,363,200$2,564,100Liabilities and EquityJanuary 1, 2021December 31, 2021Accounts payable$300,000$233,880Other current liabilities80,30040,000Mortgages210,000200,000Capital stock500,000500,000Retained earnings1,272,9001,590,220Total 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.
• 

(attach Form(s) 5471) (see instructions) c Other inclusions from CFCs under subpart F not included on line 16a, 16b, or 17 (attach Form(s) 5471) (see instructions) 17 Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992) 18 Gross-up for foreign taxes deemed paid 19 IC-DISC and former DISC dividends not included on line 1, 2, or 3 20 Other dividends 21 Deduction for dividends paid on certain preferred stock of public utilities 22 Section 250 deduction (attach Form 8993) 23 Total dividends and inclusions. Add column (a), lines 9 through 20. Enter here and on page 1 , line 4 24 Total special deductions. Add column (c) lines 9 through 22. Enter here and on page 1, line 29b Form 1120 (2021)