On May $1,2011,$ William Allen and Lisa Watkins formed Allen

Corporation to sell fishing tackle. Pertinent information

regarding Allen Corporation is summarized as follows:

The business address is $1717$ Carlson street, Sidney, NY

$13838.$

The employer identification number is $75-3392543$; the

principal business activity code is $5600.$

William and Lisa each own one$-$half of the outstanding

common stock; no other class of stock is authorized.

William is president of the company, and Lisa is the

secretary$-$treasurer. Both are full$-$time employees of

the corporation, and each receives a salary of

$$160,000.$ William's social security number is $399-50-$

$2953$; Lisa's social security number is $400-30-4495.$

The corporation uses the accrual method of accounting

and reports on a calendar year basis. Inventories are

determined using the lower of cost or market method.

For book and tax purposes, the straight$-$line method of

depreciation is used.

During $2023$ the corporation distributed a cash dividend

of $$80,000.$

Selected portions of Allen's audited Income statement column of

Allen's $2023$ spread sheet reflects the following:

Account

Gross Sales

Sales returns and allowances

Cost of goods sold

Dividends received from stock

investments in less$-$than$-20\%$

owned U$.$S$.$ corporations

Interest income:

state bonds

Certificates of Deposit

Premiums of term life insurance

policies on the lives of Bill

and Lisa; Allen Corporation

is the designated beneficiary

Salaries$-$officers

Salaries$-$clerical and sales

Taxes $($state$,$ local, and payroll$)$

Repairs

Interest expense:

Loans to purchase state bonds $8,000$

Other business loans $12,{000}_{?}$

Advertising

Rental Expense

Depreciation

Debit

$ $80,000$

$920,000$

$16,000$

$320,000$

$290,000$

$105,000$

$60,000$

$20,000$

$6,000$

$83,000$

$40,000$

Credit

$$2,300,000$

$120,000$

$24,000$