Prepare a Schedule K-1s for the attached problem.

ct 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 Selection 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 Gross sales receipts Beginning inventory Direct labor Direct materials purchased Direct other costs Ending inventory Salaries and wages Officers' salaries ($75,000 each to Parsons and Smith) Repairs Depreciation expense, tax and book Interest expense Rent expense (operating) Taxes Charitable contributions (cash) Advertising expenses Payroll penalties Other deductions $ 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) A 2018 comparative balance sheet appears below. January 1 December 31 Cash Accounts receivable Inventories Prepaid expenses Building and equipment Accumulated depreciation Land Total assets $ 47,840 93,100 9,607 8,333 138,203 (84,235) 2,000 $214,848 $ ? 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 $ 42,500 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