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Prepare a Form 1120 for Kingfisher for tax year 2012.

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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 number 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 Security 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;Dividends received from stock;investments in less-than-20%-owned;U.S. corporations;Interest income;State bonds;$2,500;Certificates of deposit;4,000;Total income;Expenses;Salaries?officers;Nancy Trout;Delores Lake;Salaries?clerical and sales;Taxes (state, local, and payroll);Repairs and maintenance;Interest expense;$150,000;150,000;$1,084,000;9,000;6,500;$1,099,500;$300,000;232,000;68,000;45,000;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;Accounts payable;Other current liabilities;Mortgages;Capital stock;Retained earnings;Total liabilities and equity;January 1, 2012 December 31, 2012;$240,000;$220,440;64,240;32,000;168,000;165,000

 

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