On February 12, 2004, 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_______.
• 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 2016 are shown below.

INCOME Income Statement Gross sales Sales returns and allowances Net sales Cost of goods sold Gross prot Dividends received from stock investments in lessthanZoitbowned US. corporations Interest income State bonds Certicates of deposit Total income Expenses Salariesofcers Nancy Trout Delores Lake Salariesclerical and sales Taxes (state, local, and payroll} Repairs and maintenance Interest expense: Business loans Loan to purchase state bonds Advertising Rental expense Depreciation" Charitable contributions Employee benet programs Premiums on term life insurance policies on lives of Nancy Trout and Delores Lake: Kingsher is the designated beneciary Total expenses Net income before taxes Federal income tax Net income per books 5 14,000 10.000 $1 60,000 1 60M 5 12,000 3,000 $320,000 290,000 35,000 56,000 20,000 6,000 63,000 40,000 15,000 24,000 16,000 32300000 [30.0001 52,323,000 (920,000) $1,403,000 12.000 24.000 51,444.000 (940,000) S 504,000 (121,904) 5.122.924: ' You are not provided enough detailed information to complete a Form 4562 {depreciadonL If you solve this problem using use Elocli Tax Software, enter the amount of deprecatten on line 20 of Form 1120. Balance Shut Assets January 'I. 2016 December 31. 2016 Cash 5 380.000 '5 335.524 Trade notes and accounts receivable 303.400 430.230 Inventories 900.000 1.01 2.000 State bonds 160.000 160.000 Federal income tax refund 0 3.096 Certicates of deposit 140.000 140.000 Stock investments 300.000 300.000 Building and other depreciable assets 240.000 240.000 Accumulated depreciation [83.300]I (123.300) Land 20.000 20.000 Other assets 3.500 2.000 Total assets $2,363.20!) $2,564,100 Liabilities and Equity January 1. 2016 December 31. 2016 Accounts payable 5 300.000 $ 299.104 Other current liabilities 30.300 40.000 Mongages 21 0.000 200.000 Capital stock 500.000 500.000 Retained eamings 1.210.900 1.524.996 Total liabilities and equity 52.363200 $2,564,100