Please prepare a tax return using the following information:

John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners,

respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303. Premiums Selection was made on January 15, 2011, its date of

incorporation. The following information was taken from the companys 2018 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

The rest of the info in attached pictures.

A comparative balance sheet appears below. December 31, 2018 $ ? 123,104 3,467 17,582 185,348 Cash Accounts receivable Inventories Prepaid expenses Building and equipment Accumulated depreciation Land Total assets Accounts payable Notes payable (less than 1 year) Notes payable (more than 1 year) Capital stock Retained earnings Total liabilities and capital January 1, 2018 $ 47,840 93 93,100 9,607 8,333 138,203 (84,235) 2,000 $214,848 $42,500 4,500 26,700 30,000 111,148 $214,848 2,000 $844,422 $72,300 2,100 24,300 30,000 ? $844,422 Premium's accounting firm provides the following additional information. Distributions to shareholders $100,000 Beginning balance, Accumulated adjustments account 111,148 Using the preceding information, prepare a Form 1120S and Schedule K-Is for John Parsons and George Smith, 5607 20th Street, Cut and Shoot, TX 77303. Do not complete the Forms 1125-A, 1125-E, and 4562. If any information is missing, make realistic assumptions. Suggested software: ProConnect Tax Online