On November 1, 2011, 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 Kingdoms business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is (214) 555-2211; and its e-mail address is petkingdom@pki.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. Janets Social Security number is 123-45-6788, and Kims 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 2022, the corporation distributed cash dividends of $250,000.

Tax Forms Problem

On February 12, 2008, Nancy Trout and Delores Lake formed Kingfisher Corporation to sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follows:

Kingfishers 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. Nancys Social Security number is 123-45-6788, and Deloress Social Security number is 123-45-6787.

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 2022, the corporation distributed cash dividends of $80,000.

Income Statement. Income. Gross sales. 2,408,000 dollars. Sales returns and allowances. Expense of 80,000 dollars. Net sales. 2,328,000 dollars. Cost of goods sold. Expense of 920,000 dollars. Gross profit. 1,408,000 dollars. Dividends received from stock investments in less than 20 percent owned United States corporations. 12,000 dollars. Interest income from State bonds is 14,000 dollars and from Certificates of deposit is 10,000 dollars for a total of 24,000 dollars. Total income. 1,444,000 dollars. Expenses. Salaries of officers. Nancy Trout. 160,000 dollars. Delores Lake. 160,000 dollars. Total officer salaries. 320,000 dollars. Salaries of clerical and sales. 290,000 dollars. Taxes for state, local, and payroll. 85,000 dollars. Repairs and maintenance. 56,000 dollars. Interest expense. Business loans. 12,000 dollars. Plus loan to purchase state bonds. 8,000 dollars. Total interest expense of 20,000 dollars. Advertising. 6,000 dollars. Rental expense. 68,000 dollars. Depreciation. You are not provided enough detailed information to complete a Form 45 62 for depreciation. If you solve this problem using Intuit Pro Connect, enter the amount of deprecation on line 20 of Form 11 20. For this table, depreciation is 40,000 dollars. Charitable contributions. 15,000 dollars. Employee benefit programs. 24,000 dollars. Premiums on term life insurance policies on lives of Nancy Trout and Delores Lake; Kingfisher is the designated beneficiary. 16,000 dollars. Total expenses. 940,000 dollars. Net income before taxes. 504,000 dollars. Federal income tax. 106,680 dollars. Net income per books. 397,320 dollars. During 2022, the corporation distributed cash dividends of $80,000. During 2022, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare Kingfishers corporate tax return for tax year 2022 using Form 1120 (and any other appropriate forms and schedules Balance Sheet. Assets. Cash. January 1, 2022. 380,000 dollars. cash for December 31 2022 is 337,300 how did you get 337,300 dollars.