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On February 1 5 , 2 0 0 5 , SpongeBob Squarepants and Eugene Krabs formed Krusty Krab Corporation to sell fast food as a

On February 15,2005, SpongeBob Squarepants and Eugene Krabs formed Krusty Krab Corporation to sell fast food as a full service
restaurant. Information regarding Krusty Krab Corp. is summarized as follows:
Krusty Krab Corporation is located at 1300 Conch Street, Bikini Bottom, MI 41010. The employer identification number is 11-
2222222
SpongeBob owns 50% of the common stock and is vice president of the company. Mr. Krabs owns 50% of the common stock and is
president of the company.
Both SpongeBob and Mr. Krabs are full-time employees of the company. SpongeBob's Social Security number is 987-65-4321. Mr.
Krab's is 123-45-6789.
Krusty Krab Corp is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or
market method. They use the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax
purposes.
During 2023, the corporation distributed cash dividends of $140,000.
Depreciation under MACRS rules would be $45,100 for 2023.(You are not required to file Form 4562 for this assignment)
During 2023, Krusty Krab Corp. made estimated payments of $28,000 each quarter to the IRS.
Prepare Form 1120, pages 1-6 for 2023. You do not need to complete Schedule K, Schedule L or supporting
Forms 1125-A and 1125-E.
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