Note: This problem is for the 2020 tax year.On November 1, 2009, Janet Morton and Kim Wong formed 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 11-1111112, and the principal business activity 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. Janet's Social Security number is 123-45-6788, and Kim's Social Security number is 123-45-6787. Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes. During 2020, the corporation distributed cash dividends of $250,000.Pet Kingdom's financial statements for 2020 are shown below. Income Statement Income Gross sales $5,750,000 Sales returns and allowances (200,000) Net sales $5,550,000 Cost of goods sold (2,300,000) Gross profit $3,250,000 Dividends received from stock investments in less-than-20%-owned U.S. corporations 43,750 Interest income: State bonds $15,000 Certificates of deposit 20,000 35,000 Total income $3,328,750 Expenses Salaries—officers: Janet Morton $262,500 Kim Wong 262,500 $525,000 Salaries—clerical and sales 725,000 Taxes (state, local, and payroll) 238,000 Repairs and maintenance 140,000 Interest expense: Loan to purchase state bonds $9,000 Other business loans 207,000 216,000 Advertising 58,000 Rental expense 109,000 Depreciation* 106,000 Charitable contributions (cash) 38,000 Employee benefit programs 60,000 Premiums on term life insurance policies on lives of Janet Morton andKim Wong; Pet Kingdom is thedesignated beneficiary 40,000 Total expenses (2,255,000) Net income before taxes $1,073,750 Federal income tax (221,734) Net income per books $852,016 * Depreciation for tax purposes is $136,000. You are not provided enough detailed data to complete a Form 4562 (depreciation). If you solve this problem using Intuit ProConnect, enter the amount of depreciation on line 20 of Form 1120. Balance Sheet Assets January 1, 2020 December 31, 2020 Cash $1,200,000 $1,039,461 Trade notes and accounts receivable 2,062,500 2,147,000 Inventories 2,750,000 3,030,000 Stock investment 1,125,000 1,125,000 State bonds 375,000 375,000 Certificates of deposit 400,000 400,000 Prepaid Federal tax –0– 2,266 Buildings and other depreciable assets 5,455,000 5,455,000 Accumulated depreciation (606,000) (712,000) Land 812,500 812,500 Other assets 140,000 128,500 Total assets $13,714,000 $13,802,727 Liabilities and Equity January 1, 2020 December 31, 2020 Accounts payable $2,284,000 $1,840,711 Other current liabilities 175,000 155,000 Mortgages 4,625,000 4,575,000 Capital stock 2,500,000 2,500,000 Retained earnings 4,130,000 4,732,016 Total liabilities and equity $13,714,000 $13,802,727 Required:During 2020, Pet Kingdom made estimated tax payments of $56,000 each quarter to the IRS. Prepare Pet Kingdom's corporate tax return for tax year 2020 using Form 1120 (and any other appropriate forms and schedules). Need Form 1120, Form 1125-A, Schedule G, Schedule M-3, Form 1125-E, and Federal Statements.PLEASE COMPLETE ALL FORMS FOR THE YEAR OF 2020. NO OTHER YEAR. If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers, unless otherwise instructed. If required, round amounts to the nearest dollar. Make realistic assumptions about any missing data.

Note: This problem is for the 2020 tax year. On November 1, 2009, Janet Morton and Kim Wong formed Pet Kingdom, Inc., to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is...

Note: This problem is for the 2020 tax year.

On November 1, 2009, Janet Morton and Kim Wong formed 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 [email protected].

The employer identification number is 11-1111112, and the principal business activity 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. Janet's Social Security number is 123-45-6788, and Kim's Social Security number is 123-45-6787.

Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes.

During 2020, the corporation distributed cash dividends of $250,000.

Pet Kingdom's financial statements for 2020 are shown below.

Income Statement
Income
Gross sales		$5,750,000
Sales returns and allowances		(200,000)
Net sales		$5,550,000
Cost of goods sold		(2,300,000)
Gross profit		$3,250,000
Dividends received from stock
investments in less-than-20%- owned U.S. corporations		43,750
Interest income:
State bonds		$15,000
Certificates of deposit			20,000	35,000
Total income		$3,328,750
Expenses
Salaries—officers:
Janet Morton	$262,500
Kim Wong	262,500		$525,000
Salaries—clerical and sales		725,000
Taxes (state, local, and payroll)		238,000
Repairs and maintenance		140,000
Interest expense:
Loan to purchase state bonds	$9,000
Other business loans	207,000		216,000
Advertising		58,000
Rental expense		109,000
Depreciation*		106,000
Charitable contributions (cash)		38,000
Employee benefit programs		60,000
Premiums on term life insurance
policies on lives of Janet Morton and Kim Wong; Pet Kingdom is the designated beneficiary		40,000
Total expenses		(2,255,000)
Net income before taxes		$1,073,750
Federal income tax		(221,734)
Net income per books		$852,016

* Depreciation for tax purposes is $136,000. You are not provided enough detailed data to complete a Form 4562 (depreciation). If you solve this problem using Intuit ProConnect, enter the amount of depreciation on line 20 of Form 1120.

Balance Sheet
Assets	January 1, 2020		December 31, 2020
Cash		$1,200,000		$1,039,461
Trade notes and accounts receivable		2,062,500		2,147,000
Inventories		2,750,000		3,030,000
Stock investment		1,125,000		1,125,000
State bonds		375,000		375,000
Certificates of deposit		400,000		400,000
Prepaid Federal tax		–0–		2,266
Buildings and other depreciable assets		5,455,000		5,455,000
Accumulated depreciation		(606,000)		(712,000)
Land		812,500		812,500
Other assets		140,000		128,500
Total assets		$13,714,000		$13,802,727

Liabilities and Equity	January 1, 2020		December 31, 2020
Accounts payable		$2,284,000		$1,840,711
Other current liabilities		175,000		155,000
Mortgages		4,625,000		4,575,000
Capital stock		2,500,000		2,500,000
Retained earnings		4,130,000		4,732,016
Total liabilities and equity		$13,714,000		$13,802,727

Required:

During 2020, Pet Kingdom made estimated tax payments of $56,000 each quarter to the IRS. Prepare Pet Kingdom's corporate tax return for tax year 2020 using Form 1120 (and any other appropriate forms and schedules). Need Form 1120, Form 1125-A, Schedule G, Schedule M-3, Form 1125-E, and Federal Statements.

PLEASE COMPLETE ALL FORMS FOR THE YEAR OF 2020. NO OTHER YEAR.

If an amount box does not require an entry or the answer is zero, enter "0".

Enter all amounts as positive numbers, unless otherwise instructed.

If required, round amounts to the nearest dollar.

Make realistic assumptions about any missing data.

Jun 09, 2022

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Note: This problem is for the 2020 tax year. On November 1, 2009, Janet Morton and Kim Wong formed Pet Kingdom, Inc., to sell pets and pet supplies. Pertinent information regarding Pet Kingdom is...

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