please answer this question fully and put the tax return in order, also please used the tax form from 2015
On February 12, 2003, Nancy Trout and Delores Lake formed Kingfisher Corporation to sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follows: nan Kingfisher's business address is 1717 Main Street, Ely, MN 55731; its telephone r .' ~.: .13.}..'9; number is [218) 555-2211; and its e-mail address is kingfisher@kf.com. The employer identification number is 11-1111111, and the principal business activity code is 41-51110. Nancy owns 50% ofthe common stock and is president of the company, and Delores owns 50% ofthe 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. Nancy's Social Security number is 123-45-6789, and Delores's Social Security number is 987-65-4321. 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 2015, the corporation distributed cash dividends of $80,000. Kingfisher's financial statements for 2015 are shown on the next page. Income Statement Income Gross sales $2,408,000 Sales returns and allowances (80,000) Net sales 52,328,000 Cost of goods sold (920,000) Gross prot $1,408,000 Dividends received from stock investments in less-aan2096-owned US. corporations 12.000 interest income State bonds 5 14.000 Certicates of deposit 1 0.000 24,000 Total income 5 1 .444,000 Ewenses Salariesofficers Nancy Trout S 1 60,000 Delores Lake 1 60.000 $320,000 Salariesclerical and sales 290.000 Taxes (state, local, and payroll) 85,000 Repairs and maintenance 56,000 Interest expense: Business loans 5 12.000 Loan to purchase state bonds 8,000 20,000 Advertising 6.000 Rental expense 68.000 Depreciation\" 40,000 Charitable contributions 1 5,000 Employee benet programs 24.000 Premiums on term life inswance policies on lives of Nancy Trout and Delores Lake; Kingsher is the designated beneciary 1 6,000 Total expenses (940,000) Net income before taxes 5 504.000 Federal income tax (171,904) Net income per books 5 332,096 *You are not provided enough detalled Information to complete a Form 4562 (depreciation). If you solve this problem using H&R BLOCK Tax Software, enter the amount of deprecatlon on line 20 of Form ! 120. During 2015, Kingfisher made estimated tax payments of $43,750 each quarter to the IRS. Prepare a Form 1120 for Assets Cash Trade notes and accounts receivable Inventories State bonds Federal income tax refund Certicates of deposit Stock investments Building and other depreciabie assets Accumulated depreciation Land Other assets Total assets Uabllltles and Equity Accounts payable Other current liabilities Mortgages Capital stock Retained earnings Total liabilities and equity Balance Sheet January 1. 2015 $ 380,000 308,400 900,000 1 60,000 .0- 1 40,000 300,000 240.000 (88.800) 20,000 3,600 $2,363,200 January 1. 2015 S 300,000 80,300 21 0,000 500,000 1 272,900 52,363,200 Kingfisher for tax year 2015. Suggested software: H&R BLOCK Tax Software. December 31. 2015 5 335.5 24 480.280 1 .01 2.000 1 60.000 3.096 1 40.000 300.000 240.000 (1 28.300) 20,000 2,000 $2,564.1 00 December 31. 2015 5 299.104 40.000 200.000 500.000 1 524,996 $2,564.1 00
