On February 12, 2006, 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 Secu- rity 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 deter- mined using FIFO and the lower of cost or market method. Kingfisher uses the straight-line method of deprecation for book purposes and accelerated deprecia- tion (MACRS) for tax purposes. During 2020, the corporation distributed cash dividends of $80,000. Kingfisher's financial statements for 2020 are shown below and on the next page. Gross sales Income Income Statement $2,408,000 Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends received from stock investments in less-than-20%-owned U.S. corporations Interest income: State bonds Certificates of deposit Total income Repairs and maintenance Interest expense: (80,000) $2,328,000 (920.000) $1,408,000 12,000 $ 14,000 10,000 24,000 $1,444,000 56,000 Business loans $ 12,000 Loan to purchase state bonds 8,000 20,000 Advertising 6,000 Rental expense 68,000 Depreciation* Charitable contributions Employee benefit programs Premiums on term life insurance policies on lives of Nancy Trout and Delores Lake; Kingfisher is the designated beneficiary Total expenses 40,000 15,000 24,000 16,000 (940,000) Net income before taxes Federal income tax Net income per books $ 504,000 (106,680) $ 397.320 *You are not provided enough detailed information to complete a Form 4562 (depreciation). If you solve this problem using Intuit ProConnect, enter the amount of deprecation of $40,000 on line 20 of Form 1120. Balance Sheet Assets January 1, 2020 December 31, 2020 Cash $ 380,000 Trade notes and accounts receivable 308,400 Inventories 900,000 160,000 $ 337,300 480,280 1,012,000 160,000 State bonds Federal income tax refund Certificates of deposit Stock investments Building and other depreciable assets Accumulated depreciation Land -0- 1,320 140,000 140,000 300,000 300,000 240,000 240,000 (88,800) (128,800) 20,000 20,000 3,600 $2,363,200 January 1, 2020 2,000 $2,564,100 December 31, 2020 $ 233,880 40,000 200,000 500,000 Other assets Total assets Liabilities and Equity Accounts payable Other current liabilities Mortgages Capital stock $ 300,000 80,300 210,000 Retained earnings Total liabilities and equity 500,000 1,272,900 $2,363,200 1.590,220 $2,564,100 During 2020, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare a Form 1120 for Kingfisher for tax year 2020. Suggested software: Pro Connect Tax Online. (2) Please complete Form 1120 Tax Return of the "Kingfisher Corporation in Problem 4 attached in this folder. Please complete in details and check all boxes if appropriate a) Form 1120 2020 including Schedule C, Schedule J, Schedule K, Schedule L, Schedule M-1, Schedule M-2, Form 1125-A, Schedule G, Form 1125-E