Prepare a Form 1120S and Schedule K-1s for the attached problem.

Comprehensive Tax Return Problem intuit proconnect 1. John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% own ers, respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303. Premium's S election was made on January 15, 2011, its date of incorporation. The following information was taken from the company's 2018 income statement. Premium's book income for the year was $704,574. 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) A 2018 comparative balance sheet appears below. December 31 Cash Accounts receivable Inventories Prepaid expenses Building and equipment Accumulated depreciation Land Total assets January 1 $ 47,840 93,100 9,607 8,333 138,203 (84,235) 2,000 $214,848 S ? 123,104 3,467 17,582 185,348 (?) 2,000 $844,422 Accounts payable Notes payable (less than 1 year) Notes payable (more than 1 year) Capital stock Retained earnings Total liabilities and capital $ 12,500 4,500 26,700 30,000 111,148 $214,848 $ 72,300 2,100 24,300 30,000 $844,422 Premium's accounting firm provides the following additional information. Cash distributions to shareholders $100,000 Beginning balance, accumulated adjustments account 111,148 Using the preceding information, prepare a Form 11205 and Schedule K-1s for John Parsons and George Smith, both of whom live at 5607 20th Street, Cut and Shoot TX 77303. Do not complete Forms 1125-A, 1125-E, and 4562. If any information is missing, make realistic assumptions. Suggested software: ProConnect Tax Online