On February 12, 2003, 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 11-1111111, 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 123-45-6789, and Delores's Social Security number is 987-65-4321.

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 2015, the corporation distributed cash dividends of $80,000.

Kingfisher's financial statements for 2015 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		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			(171,904)
Net income per books			$ 332,096

*You are not provided enough detailed information to complete a Form 4562 (depreciation). Enter the amount of deprecation on line 20 of Form 1120.

Balance Sheet
Assets	January 1, 2015	December 31, 2015
Cash	$ 380,000	$ 335,524
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-	3,096
Certificates of deposit	140,000	140,000
Stock investments	300,000	300,000
Building 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, 2015	December 31, 2015
Accounts payable	$ 300,000	$ 299,104
Other current liabilities	80,300	40,000
Mortgages	210,000	200,000
Capital stock	500,000	500,000
Retained earnings	1,272,900	1,524,996
Total liabilities and equity	$2,363,200	$2,564,100

During 2015, Kingfisher made estimated tax payments of $43,750 each quarter to the IRS. Prepare Form 1120 for Kingfisher for tax year 2015. Prepare Form 1125-A for Kingfisher for tax year 2015. Prepare Schedule G. Prepare Form 1125-E for Kingfisher for tax year 2015.

Form 1125-A (Rev. December 2012) Department of the Treasury Internal Revenue Service

Cost of Goods Sold Attach to Form 1120, 1120-C, 1120-F, 1120S, 1065, or 1065-B. Information about Form 1125-A and its instructions is atwww.irs.gov/form1125a.

OMB No. 1545-2225

Name Kingfisher Corporation

Employer identification number 11-1111111

1	Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
2	Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2
3	Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
4	Additional section 263A costs (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
5	Other costs (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5
6	Total. add line 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	6
7	Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	7
8	Cost of goods sold. Subtract line 7from line 6. Enter here and on Form 1120, page 1, line 2 or the aapropriate line of your tax return (see instructions) . . . . . . . . . . . . . . .	8
9 a	Check all methods used for valuing closing inventory:
	(i) Cost
	(ii) Lower of cost or market
	(iii) Other (Specify method used and attach explanations) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
b	Check if there was a writedown of subnormal goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c	Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . .
d	If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO	9d
e	If property is produced or acquired for resale, do the rules of section 263A apply to the entity (see instructions)? . .		Yes No
f	Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If "Yes," attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

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