Question Details

Answered: - During 2012, Pet Kingdom made estimated tax payments of $1


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 k..r@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.

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 18, 2020

PRICE: $15

Solution~0001185861.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 18, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now