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. Pet Kingdoms financial statements for 2022 are shown below.

Depreciation for tax purposes is $136,000.

During 2022, Pet Kingdom made estimated tax payments of $56,000 each quarter to the IRS. Prepare a Form 1125-A for Pet Kingdom for tax year 2022.

Income Statement Income Gross sales 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 Expenses Salaries-officers: Janet Morton Kim Wong Salaries-clerical and sales Taxes (state, local, and payroll) Repairs and maintenance Interest expense: Loan to purchase state bonds Other business loans Advertising Rental expense Depreciation* Charitable contributions Employee benefit programs Premiums on term life insurance policies on lives of Janet Morton and Kim Wong; Pet Kingdom is the designated beneficiary Total expenses Net income before taxes Federal income tax Net income per books $5,750,000(200,000)$5,550,000(2,300,000)$3,250,00043,75035,000$3,328,750 $15,000 20,000 $262,500 262,500 $9,000 207,000 216,000 58,000 109,000 106,000 38,000 60,000 40,000 $1,073,750(2,255,000) $852,016(221,734) Balance Sheet Income Statement Income Gross sales 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 Expenses Salaries-officers: Janet Morton Kim Wong Salaries-clerical and sales Taxes (state, local, and payroll) Repairs and maintenance Interest expense: Loan to purchase state bonds Other business loans Advertising Rental expense Depreciation* Charitable contributions Employee benefit programs Premiums on term life insurance policies on lives of Janet Morton and Kim Wong; Pet Kingdom is the designated beneficiary Total expenses Net income before taxes Federal income tax Net income per books $5,750,000(200,000)$5,550,000(2,300,000)$3,250,00043,75035,000$3,328,750 $15,000 20,000 $262,500 262,500 $9,000 207,000 216,000 58,000 109,000 106,000 38,000 60,000 40,000 $1,073,750(2,255,000) $852,016(221,734) Balance Sheet