PROBLEM 3-CCORPORATION (FORM 1120) 1. On November 1, 2008,Janet Morton and Kim Wong fomed 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 (214) 555-2211; and its e-mail address is petkingdom@pki.com. .The employer identification number is 1-11111 and the principal business activiry 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. Janets Social Security number is 123-45-6789, and Kim's Social Security number is 987-65-4321. During 2018, the corporation distributed cash dividends of $250,000. Pet Kingdoms financial statements for 2018 are shown below Income Statement Income Gross sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends received from stack S 5,750,000 5,550,00 3,250,000 investments in less-than-20 owned US. corporations 43,750 Interest income: 15,000 State bonds Certifcates of deposit Total income $3,328,750 Expenses Janet Morton 262,500 262,500 Kim Wong Salaries-clerical and sales Taxes (state, local, and payroll Repairs and maintenance Interest expense: S525,000 238,000 Loan to purchase state bonds 9,000 Other business loans 207 216,000 Rental expense Depreciation Charitable contributions Employee benefit programs Premiums on term life Insurance 109,000 106,000 policles on lives of Janet Morton and Kim Wong: Pet Kingdom is the Total expenses Net income before taxes Federal Income tax Net income per books (2.255,000 $1,073,750 (221.734 5 852,016 Depreclation for tex purposes ts $134,000. You are not provided enough detaled data to complete a Form 4562 Intuit P enter the amount el APPENDIX E Practice Set Assignments-Comprehensive Balance Sheet Assets January 1,2018 December 31, 2018 Cash Trade notes and accounts receivable Inventorles Stock Investment State bonds Certificates of deposit Prepaid Federal tax Buildings and other depreclable assets Accumulated depreclation Land Other assets 1,200,000 2,062,500 2,750,000 ,125,000 375,000 400,000 1,039,461 2,147,000 ,030,000 1,125,000 375,000 400,000 2,266 5455,000 (712,000) 812,500 128,500 5134 13802727 5,455,000 (606,000) 812,500 40,000 Total assets Liabilitles and Equity Accounts payable Other current liablities Mortgages Capital stock Retained eanings January 1, 2018 December 31,2018 1,840,711 155,000 4,575,000 2,500,000 4,732,016 13,802,727 2,284,000 175,000 4625,000 2,500,000 4,130000 13,714,000 Total liabiltles and equity During 2018, Pet Kingdom made estimated tax payments of $56,000 each quarter to the IRS. Prepare a Form 1120 for Pet Kingdom for tax year 2018 (if the final 2018 Fom 1120 is not available, see if a draft 2018 Form 1120 is available on the IRS website). PROBLEM 3-CCORPORATION (FORM 1120) 1. On November 1, 2008,Janet Morton and Kim Wong fomed 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 (214) 555-2211; and its e-mail address is petkingdom@pki.com. .The employer identification number is 1-11111 and the principal business activiry 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. Janets Social Security number is 123-45-6789, and Kim's Social Security number is 987-65-4321. During 2018, the corporation distributed cash dividends of $250,000. Pet Kingdoms financial statements for 2018 are shown below Income Statement Income Gross sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends received from stack S 5,750,000 5,550,00 3,250,000 investments in less-than-20 owned US. corporations 43,750 Interest income: 15,000 State bonds Certifcates of deposit Total income $3,328,750 Expenses Janet Morton 262,500 262,500 Kim Wong Salaries-clerical and sales Taxes (state, local, and payroll Repairs and maintenance Interest expense: S525,000 238,000 Loan to purchase state bonds 9,000 Other business loans 207 216,000 Rental expense Depreciation Charitable contributions Employee benefit programs Premiums on term life Insurance 109,000 106,000 policles on lives of Janet Morton and Kim Wong: Pet Kingdom is the Total expenses Net income before taxes Federal Income tax Net income per books (2.255,000 $1,073,750 (221.734 5 852,016 Depreclation for tex purposes ts $134,000. You are not provided enough detaled data to complete a Form 4562 Intuit P enter the amount el APPENDIX E Practice Set Assignments-Comprehensive Balance Sheet Assets January 1,2018 December 31, 2018 Cash Trade notes and accounts receivable Inventorles Stock Investment State bonds Certificates of deposit Prepaid Federal tax Buildings and other depreclable assets Accumulated depreclation Land Other assets 1,200,000 2,062,500 2,750,000 ,125,000 375,000 400,000 1,039,461 2,147,000 ,030,000 1,125,000 375,000 400,000 2,266 5455,000 (712,000) 812,500 128,500 5134 13802727 5,455,000 (606,000) 812,500 40,000 Total assets Liabilitles and Equity Accounts payable Other current liablities Mortgages Capital stock Retained eanings January 1, 2018 December 31,2018 1,840,711 155,000 4,575,000 2,500,000 4,732,016 13,802,727 2,284,000 175,000 4625,000 2,500,000 4,130000 13,714,000 Total liabiltles and equity During 2018, Pet Kingdom made estimated tax payments of $56,000 each quarter to the IRS. Prepare a Form 1120 for Pet Kingdom for tax year 2018 (if the final 2018 Fom 1120 is not available, see if a draft 2018 Form 1120 is available on the IRS website)