Phil Williams and Liz Johnson are 60% and 40% shareholders, respectively, in WJ Corporation, a Subchapter S corporation. The corporation had the following activity during the year:

Income	$336,123
Interest income	1,259
Dividend income (qualified)	4,586
Long-term capital gains	13,458
Total revenue	$355,426
Expenses
Salaries and wages (nonofficers)	$ 47,000
Salaries and wages, owners and officers	125,000
Depreciation (MACRSincludes $9,000 179 expense)	41,888
Interest expense	5,220
Taxes and licenses	15,548
Meals and entertainment (100%)	15,257
Auto	5,254
Insurance (nonofficer health)	6,000
Accounting and legal	2,800
Repairs	1,200
Charitable contributions	2,500
Payroll penalties	500
Total expenses	$268,167
Net income	$87,259

During the year, the corporation made a distribution of $20,000, in total, to its shareholders. Complete page 1, Schedule K, and Schedule M-1 of Form 1120S. (Enter all amounts as positive unless otherwise indicated in the forms themselves. Round your intermediate computations to the nearest whole dollar value.)

1120S pages 1 - 4 to be completed.....