Please also prepare the updated balance sheets and income statements.

William Dean (123-45-6781) and Michael Smith (123-45-6782) are 50% and 50% owners, respectively of Railway Inc. (11-1111120), a Steel manufacturing company located at 2222 Mcfadden Ave. Long Beach CA 9111. Railway S- election was made effective January 1, 2019. Prior to that Railway was a C Corporation incorporated on 6/15/1980. On 12/31/2021, the Company sold interest in the Land used in the trade or business for $902,000 Cash. The basis of the land was $2,000 purchased on 1/1/2018. No estimated tax payments have been made. The following information was taken from the company's 2021 income statement without regard to the sale to the sale of Land: Interest income Gross sales receipts Beginning inventory Direct labor Direct materials purchased Direct other costs Ending inventory Salaries and wages Officers' salaries ($75,000 each to Smith and Weaver) Repairs Depreciation expense, tax and book (assume Bonus Depreciation-Section 168(k)) Interest expense Rent expense (operating) Taxes Charitable contributions (cash) Advertising expenses Payroll penalties Other deductions Book Income Net Unrealized Built-In Gain-Land @12/31/2020 $ 100,000 2,410,000 9,607 (203.102) (278,143) (249,356) 3,467 (442,103) (150,000 (206,106) (15,254) (35,222) (40,000) (65,101) (20,000) (20,000) (15,000) (59,899) 704,574 500,000 A comparative balance sheet appears in a separate file. Railway's accounting firm provides the following additional information. Distributions to shareholders Beginning balance, Accumulated adjustments account W-2 wages for QBI $100.000 111,148 795,205 1. Using the preceding information, prepare a 2021 Form 1120S and Schedule K-1s for Michael Smith 11 Apple Blvd, Long Beach CA 9211, and William Dean, 15 Golden Street, Long Beach, CA 91111. Complete the Forms 1125-A, 1125-E, 4562, 4797 and Schedule D and other forms you deem necessary. If any information is missing, make realistic assumptions. Suggested software: Pro Connect Tax Online. Railway Inc. Comparative Balance Sheets 2020 and 2021 12/31/2021 $ ? 12/31/2020 47,840 93,100 9,607 8,333 138,203 (84,235) 2,000 Cash Accounts Receivable Inventories Prepaid Expenses Building and Equipment Accumulated Depreciation Land 123,104 3,467 17,582 185,348 .............. ? Total Assets $ 214,848 $ 1,794,422 $ $ 42,500 4,500 26,700 Accounts Payable Notes Payable-Short Term Notes Payable-Long Term Loan to Railway Federal Taxes Payable Capital Stock Retained Earnings 72,300 2,100 24,300 50,000 ? 30,000 30,000 111,148 ? Total Liabilities and Equity $ 214,848 $ 1,794,422 William Dean (123-45-6781) and Michael Smith (123-45-6782) are 50% and 50% owners, respectively of Railway Inc. (11-1111120), a Steel manufacturing company located at 2222 Mcfadden Ave. Long Beach CA 9111. Railway S- election was made effective January 1, 2019. Prior to that Railway was a C Corporation incorporated on 6/15/1980. On 12/31/2021, the Company sold interest in the Land used in the trade or business for $902,000 Cash. The basis of the land was $2,000 purchased on 1/1/2018. No estimated tax payments have been made. The following information was taken from the company's 2021 income statement without regard to the sale to the sale of Land: Interest income Gross sales receipts Beginning inventory Direct labor Direct materials purchased Direct other costs Ending inventory Salaries and wages Officers' salaries ($75,000 each to Smith and Weaver) Repairs Depreciation expense, tax and book (assume Bonus Depreciation-Section 168(k)) Interest expense Rent expense (operating) Taxes Charitable contributions (cash) Advertising expenses Payroll penalties Other deductions Book Income Net Unrealized Built-In Gain-Land @12/31/2020 $ 100,000 2,410,000 9,607 (203.102) (278,143) (249,356) 3,467 (442,103) (150,000 (206,106) (15,254) (35,222) (40,000) (65,101) (20,000) (20,000) (15,000) (59,899) 704,574 500,000 A comparative balance sheet appears in a separate file. Railway's accounting firm provides the following additional information. Distributions to shareholders Beginning balance, Accumulated adjustments account W-2 wages for QBI $100.000 111,148 795,205 1. Using the preceding information, prepare a 2021 Form 1120S and Schedule K-1s for Michael Smith 11 Apple Blvd, Long Beach CA 9211, and William Dean, 15 Golden Street, Long Beach, CA 91111. Complete the Forms 1125-A, 1125-E, 4562, 4797 and Schedule D and other forms you deem necessary. If any information is missing, make realistic assumptions. Suggested software: Pro Connect Tax Online. Railway Inc. Comparative Balance Sheets 2020 and 2021 12/31/2021 $ ? 12/31/2020 47,840 93,100 9,607 8,333 138,203 (84,235) 2,000 Cash Accounts Receivable Inventories Prepaid Expenses Building and Equipment Accumulated Depreciation Land 123,104 3,467 17,582 185,348 .............. ? Total Assets $ 214,848 $ 1,794,422 $ $ 42,500 4,500 26,700 Accounts Payable Notes Payable-Short Term Notes Payable-Long Term Loan to Railway Federal Taxes Payable Capital Stock Retained Earnings 72,300 2,100 24,300 50,000 ? 30,000 30,000 111,148 ? Total Liabilities and Equity $ 214,848 $ 1,794,422