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During 2012, Pet Kingdom made estimated tax payments of $107,000 each quarter to the IRS. Prepare

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Question;During 2012, Pet Kingdom made estimated tax;payments of $107,000 each quarter to the IRS. Prepare a Form 1120 for Pet;Kingdom for tax year 2012. Suggested software: H&R BLOCK At Home.;2.;On February 12, 2002, Nancy Trout and Delores Lake formed Kingfisher;Corporation to;sell fishing tackle. Pertinent information;regarding Kingfisher is summarized as follows;?;Kingfisher?s business address is 1717 Main Street, Ely, MN 55731, its;telephone num-;ber is (218) 555-2211, and its e-mail;address is kingfisher@kf.com.;?;The employer identification number is 11-1111111, and the principal;business activity;code is 451110.;?;Nancy owns 50% of the common stock and is president of the company, and;Delores;owns 50% of the common stock and is vice;president of the company. No other class;of stock is authorized.;?;Both Nancy and Delores are full-time employees of Kingfisher. Nancy?s;Social Secu-;rity number is 123-45-6789, and Delores?s;Social Security number is 987-65-4321.;?;Kingfisher is an accrual method, calendar year taxpayer. Inventories are;determined;using FIFO and the lower of cost or market;method. Kingfisher uses the straight-line;method of deprecation for book purposes and;accelerated depreciation (MACRS);for tax purposes.;?;During 2012, the corporation distributed cash dividends of $64,000.;Kingfisher?s financial statements for 2012;are shown below.;Income;Statement;Income;Gross sales;$1,884,000;Sales returns and allowances (64,000);Net sales;$1,820,000;Cost of goods sold (736,000);Income;Gross profit $1,084,000;Dividends received from stock;investments in less-than-20%-owned;U.S. corporations 9,000;Interest income;State bonds;$2,500;Certificates of deposit 4,000;6,500;Total;income $1,099,500;Expenses;Salaries?officers;Nancy Trout;$150,000;Delores Lake 150,000 $300,000;Salaries?clerical and sales 232,000;Taxes (state, local, and payroll) 68,000;Repairs and maintenance 45,000;Interest expense;Business loans $10,000;Loan to purchase state bonds 1,800 11,800;Advertising;5,000;Rental expense 38,000;Depreciation*;32,000;Charitable contributions;12,000;Employee benefit programs 19,000;Premiums on term life insurance policies;on lives of Nancy Trout and Delores;Lake, Kingfisher is the designated;beneficiary;12,800;Legal and accounting services 16,000;Total expenses (791,600);Net income before taxes $;307,900;Federal income tax (105,593);Net income per books $;202,307;* You are not provided enough detailed;information to complete a Form 4562 (depreciation). If you solve;this problem using H&R BLOCK At Home;enter the amount of deprecation on line 20 of Form 1120.;Balance;Sheet;Assets January;1, 2012 December 31, 2012;Cash;$384,000 $287,780;Trade notes and accounts receivable 547,000;668,000;Inventories;480,000 569,600;State bonds;60,000;60,000;Federal income tax refund ?0? 2,407;Certificates of deposit 80,000;80,000;Stock investments 100,000 100,000;Building and other depreciable assets 192,000;192,000;Accumulated depreciation (71,040) (103,040);Land;116,000 116,000;Other assets 2,880 1,600;Total;assets $1,890,840 $1,974,347;Liabilities;and Equity January;1, 2012 December 31, 2012;Accounts payable $240,000 $220,440;Other current liabilities 64,240 32,000;Mortgages;168,000 165,000;Capital stock 400,000 400,000;Retained earnings 1,018,600 1,156,907;Total;liabilities and equity;$1,890,840 $1,974,347;During 2012, Kingfisher made estimated tax;payments of $27,000 each quarter to the;IRS. Prepare a Form 1120 for Kingfisher for;tax year 2012. Suggested software: H&R;BLOCK At Home.

 

Paper#44012 | Written in 18-Jul-2015

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