PLEASE COMPLETE M3 FORM

CHAPTER 3 Corporation introduction and Operating Rules Salaries-officers: Janet Morton $262.500 262.500 $525.000 725.000 21.00 140.000 $ 9.000 207 000 216.000 1. On November 1, 2008. 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 Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is (210) 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. Janet's Social Security number is 123-45-6788, and Kim's Social Security number is 123-45-6787. Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are deter- mined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated deprecia tion (MACRS) for tax purposes. During 2018, the corporation distributed cash dividends of $250,000. Pet Kingdom's financial statements for 2018 are shown below. Income Statement Salones-clerical and sales Taxes state, local and payro) 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 I nsurance 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 109.000 105.000 000 60.000 40 000 12,255,000 51,073750 021734 $ 852016 4552 open for at purpose is 51 BLOODY depend you this problem 0 20 of 1120 och o como reno Income Balance Sheet Assets January 1, 2018 December 31, 2018 5 1.300.000 2013 500 $ 5,750,000 (200,000) $ 5,550,000 (2.300,000) $3,250,000 2.750.000 375.000 000.000 Gross Sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends received from stock investments in less than 20%- owned US.corporations Interest income State bonds Certificates of deposit Total income Teade notes and accounts receivable Inventones Stockinvestment State hones Certelcates of deposit Prepares Federal tax Buildings and other depreciable assets Accumulated depreciation Land Other assets Total assets 5 1039.461 2.147.000 3.030.000 1.125.000 375,000 100 000 2.266 5.455.000 0712.000 812.500 128.500 553 802,727 43,750 5.455.000 66.000 812.500 100.000 $13.714.000 $ 15,000 20,000 35,000 $ 3,328,750 lanuary 1, 2018 December 31, 2018 Liabilities and Equity continued Accounts payable Other current liabilities Mortgages Capital stock Retained earnings Total abilities and equity $2.284000 175.000 4.625.000 2.500.000 4130.000 $ 1.840711 155.000 4.575.000 2.500.000 4732.016 $13.802.722 During 2018, Per Kingdom made estimated tax payments of $56,000 each quarter to the IRS. Prepare a Form 1120 for Pet Kingdom for tax year 2018 Suggested software ProConnect Tax Online CHAPTER 3 Corporation introduction and Operating Rules Salaries-officers: Janet Morton $262.500 262.500 $525.000 725.000 21.00 140.000 $ 9.000 207 000 216.000 1. On November 1, 2008. 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 Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is (210) 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. Janet's Social Security number is 123-45-6788, and Kim's Social Security number is 123-45-6787. Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are deter- mined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated deprecia tion (MACRS) for tax purposes. During 2018, the corporation distributed cash dividends of $250,000. Pet Kingdom's financial statements for 2018 are shown below. Income Statement Salones-clerical and sales Taxes state, local and payro) 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 I nsurance 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 109.000 105.000 000 60.000 40 000 12,255,000 51,073750 021734 $ 852016 4552 open for at purpose is 51 BLOODY depend you this problem 0 20 of 1120 och o como reno Income Balance Sheet Assets January 1, 2018 December 31, 2018 5 1.300.000 2013 500 $ 5,750,000 (200,000) $ 5,550,000 (2.300,000) $3,250,000 2.750.000 375.000 000.000 Gross Sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends received from stock investments in less than 20%- owned US.corporations Interest income State bonds Certificates of deposit Total income Teade notes and accounts receivable Inventones Stockinvestment State hones Certelcates of deposit Prepares Federal tax Buildings and other depreciable assets Accumulated depreciation Land Other assets Total assets 5 1039.461 2.147.000 3.030.000 1.125.000 375,000 100 000 2.266 5.455.000 0712.000 812.500 128.500 553 802,727 43,750 5.455.000 66.000 812.500 100.000 $13.714.000 $ 15,000 20,000 35,000 $ 3,328,750 lanuary 1, 2018 December 31, 2018 Liabilities and Equity continued Accounts payable Other current liabilities Mortgages Capital stock Retained earnings Total abilities and equity $2.284000 175.000 4.625.000 2.500.000 4130.000 $ 1.840711 155.000 4.575.000 2.500.000 4732.016 $13.802.722 During 2018, Per Kingdom made estimated tax payments of $56,000 each quarter to the IRS. Prepare a Form 1120 for Pet Kingdom for tax year 2018 Suggested software ProConnect Tax Online