Swift Corporation was formed on January 10, 1985, by James Brown and Martha Swift to sell mens clothing. Pertinent information regarding Swift is summarized as follows: Thebusinessaddressis6210NormanStreet,Buffalo,TX75831. The employer identification number is 11-1111111; the principal business activity code is 448110. James Brown and Martha Swift each own one-half of the outstanding common stock; no other class of stock is authorized. James Brown is president of the company, and Martha Swift is secretary-treasurer. Both are full-time employees of the corporation, and each receives a salary of $70,000. Jamess Social Security number is 123-45-6789; Marthas Social Security number is 987-65-4321. The corporation uses the accrual method of accounting and reports on a calendar basis. The specific charge off method is used in handling bad debt losses, and inventories are determined using the lower of cost or market method. For book and tax purposes, the straight-line method of depreciation is used. During 2014, the corporation distributed a cash dividend of $35,000. Selected portions of Swifts profit and loss statement reflect the following debits and credits.