On November 1, 2009, Janet Morton and Kim Wong formed Pet Kingdom, Inc., to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is summarized as follows: - Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is (214) 555 -2211; and its emall address is petkingdom@ pkl.com. - The employer identification number is 11-1111112, and the principal business activity code is 453910 . - Janet and Kim each own 50% of the common stock; Janet is president and Kim is vice president of the company. No other class of stock is authorized. - Both Janet and Kim are full-time employees of Pet Kingdom. Janet's Social Security number is 123-45-6788, and Kim's Social Security number is 123-45-6787. - Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. - During 2020, the corporation distributed cash dividends of $250,000. IncomeGrosssalesIncomeStateIneme 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 43,750 $3,328,750 Instructions Premiums on term life insurance policies on lives of Janet Morton and * Depreciation for tax purposes is $136,000. You are not provided enough detailed data to complete a Form 4562 (depreciation). If you solve this problem using Intuit Proconnect, enter the amount of depreciation on line 20 of Form 1120 During 2020 , Pet Kingdom made estimated tax. payments of $56,000 each quarter to the IRS, Prepare Pet Kingdom's corporate tax retum for tax year 2020 using Form 1120 (and any other appropriate forms and schedules). - 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. 9 Enter the amount of tax-exempt interest recelved or accrued during the tax year 10 Enter the number of shareholders at the end of the tax year (If 100 or fewer) 11 If the corporation has an NOL for the tax year and is electing to forego the carrybock period, check here (see instructions) a If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b) (3) must be 4-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. Federal Statements 2020 Pet. Kingdom, Inc. Statement 1 Form 1120, Schedule L, Line 6 Other Current Assets Certificate of Deposit Prepaid Federal Tax Statement 2 Form 1120, Schedule L, Line 9 Other Other Investments Statement 3 Form 1120, Schedule L, Line 14 other Assets Statement 4 Form 1120, Schedule L, Line 18 Other Current Liabilities Statement 5 Form 1120, Schedule M1, Line 5 Book Expenses Not Deducted On November 1, 2009, Janet Morton and Kim Wong formed Pet Kingdom, Inc., to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is summarized as follows: - Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is (214) 555 -2211; and its emall address is petkingdom@ pkl.com. - The employer identification number is 11-1111112, and the principal business activity code is 453910 . - Janet and Kim each own 50% of the common stock; Janet is president and Kim is vice president of the company. No other class of stock is authorized. - Both Janet and Kim are full-time employees of Pet Kingdom. Janet's Social Security number is 123-45-6788, and Kim's Social Security number is 123-45-6787. - Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. - During 2020, the corporation distributed cash dividends of $250,000. IncomeGrosssalesIncomeStateIneme 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 43,750 $3,328,750 Instructions Premiums on term life insurance policies on lives of Janet Morton and * Depreciation for tax purposes is $136,000. You are not provided enough detailed data to complete a Form 4562 (depreciation). If you solve this problem using Intuit Proconnect, enter the amount of depreciation on line 20 of Form 1120 During 2020 , Pet Kingdom made estimated tax. payments of $56,000 each quarter to the IRS, Prepare Pet Kingdom's corporate tax retum for tax year 2020 using Form 1120 (and any other appropriate forms and schedules). - 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. 9 Enter the amount of tax-exempt interest recelved or accrued during the tax year 10 Enter the number of shareholders at the end of the tax year (If 100 or fewer) 11 If the corporation has an NOL for the tax year and is electing to forego the carrybock period, check here (see instructions) a If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b) (3) must be 4-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. Federal Statements 2020 Pet. Kingdom, Inc. Statement 1 Form 1120, Schedule L, Line 6 Other Current Assets Certificate of Deposit Prepaid Federal Tax Statement 2 Form 1120, Schedule L, Line 9 Other Other Investments Statement 3 Form 1120, Schedule L, Line 14 other Assets Statement 4 Form 1120, Schedule L, Line 18 Other Current Liabilities Statement 5 Form 1120, Schedule M1, Line 5 Book Expenses Not Deducted