ONLY NEED THIS FIGURED OUT Question Content Area Note This problem is for the 2021 tax year John Parsons (123 45 6781) and George Smith (123 45 6782) are 70 and 30 owners, respectively, of Premium, Inc (11 1111120), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303 Premium's S election was made on January 15, 2012, its date of incorporation The following information was taken from the company's 2021 income statement Interest income $ 100,000 Gross sales receipts 2,410,000 Beginning inventory 9,607 Direct labor (203,102) Direct materials purchased (278,143) Direct other costs (249,356) Ending inventory 3,467 Salaries and wages (442,103) Officers' salaries ($75,000 each to Parsons and Smith) (150,000) Repairs (206,106) Depreciation expense, tax and book (15,254) Interest expense (35,222) Rent expense (operating) (40,000) Taxes (65,101) Charitable contributions (cash) (20,000) Advertising expenses (20,000) Payroll penalties (15,000) Other deductions (59,899) Book income 704,574 A comparative balance sheet appears below January 1, 2021 December 31, 2021 Cash $ 47,840 $ Accounts receivable 93,100 123,104 Inventories 9,607 3,467 Prepaid expenses 8,333 17,582 Building and equipment 138,203 185,348 Accumulated depreciation (84,235) ( ) Land 2,000 2,000 Total assets $214,848 $844,422 Accounts payable $ 42,500 $ 72,300 Notes payable (less than 1 year) 4,500 2,100 Notes payable (more than 1 year) 26,700 24,300 Capital stock (100 shares outstanding) 30,000 30,000 Retained earnings $111,148 Total liabilities and capital $214,848 $844,422 Premium's accounting firm provides the following additional information Distributions to shareholders (not reported on Form 1099 DIV and made based on percentage of ownership) $100,000 Beginning balance, Accumulated adjustments account 111,148 Ordinary business income for QBI 639,574 W 2 wages for QBI 795,205 UBIA of qualified property 125,000 Statement 3 Form 1120S, Schedule K, Line 17d Other Items and Amounts Gross Receipts for Section 448(c) X Statement 3 Form 1120S, Schedule K, Line 17d Other Items and Amounts Gross Receipts for Section 448(c) X

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ONLY NEED THIS FIGURED OUT: Question Content Area Note: This problem is for the 2021 tax year. John Parsons (123-45-6781) and George Smith (123-45-6782) are

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Question Content Area

Note: This problem is for the 2021 tax year.

John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111120), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303. Premium's S election was made on January 15, 2012, its date of incorporation. The following information was taken from the company's 2021 income statement.

Interest income	$ 100,000
Gross sales receipts	2,410,000
Beginning inventory	9,607
Direct labor	(203,102)
Direct materials purchased	(278,143)
Direct other costs	(249,356)
Ending inventory	3,467
Salaries and wages	(442,103)
Officers' salaries ($75,000 each to Parsons and Smith)	(150,000)
Repairs	(206,106)
Depreciation expense, tax and book	(15,254)
Interest expense	(35,222)
Rent expense (operating)	(40,000)
Taxes	(65,101)
Charitable contributions (cash)	(20,000)
Advertising expenses	(20,000)
Payroll penalties	(15,000)
Other deductions	(59,899)
Book income	704,574

A comparative balance sheet appears below.

	January 1, 2021	December 31, 2021
Cash	$ 47,840	$ ?
Accounts receivable	93,100	123,104
Inventories	9,607	3,467
Prepaid expenses	8,333	17,582
Building and equipment	138,203	185,348
Accumulated depreciation	(84,235)	(?)
Land	2,000	2,000
Total assets	$214,848	$844,422
Accounts payable	$ 42,500	$ 72,300
Notes payable (less than 1 year)	4,500	2,100
Notes payable (more than 1 year)	26,700	24,300
Capital stock (100 shares outstanding)	30,000	30,000
Retained earnings	$111,148	?
Total liabilities and capital	$214,848	$844,422

Premium's accounting firm provides the following additional information.

Distributions to shareholders (not reported on Form 1099-DIV and made based on percentage of ownership):	$100,000
Beginning balance, Accumulated adjustments account:	111,148
Ordinary business income for QBI:	639,574
W-2 wages for QBI:	795,205
UBIA of qualified property	125,000

Statement 3 Form 1120S, Schedule K, Line 17d Other Items and Amounts Gross Receipts for Section 448(c) X Statement 3 Form 1120S, Schedule K, Line 17d Other Items and Amounts Gross Receipts for Section 448(c) X