Find the figure of a total asset. Note: This problem is for the 2020 tax year. On

Find the figure of a total asset.

Transcribed Image Text:

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 Gross sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends received from stock Income investments in less-than-20%- owned U.S. corporations Interest income: State bonds Certificates of deposit Total income Salaries-officers: Expenses Janet Morton Kim Wong Salaries-clerical and sales Taxes (state, local, and payroll) $262,500 262,500 $15,000 20,000 $525,000 725,000 238,000 $5,750,000 (200,000) $5,550,000 (2,300,000) $3,250,000 43,750 35,000 $3,328,750 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 Gross sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends received from stock Income investments in less-than-20%- owned U.S. corporations Interest income: State bonds Certificates of deposit Total income Salaries-officers: Expenses Janet Morton Kim Wong Salaries-clerical and sales Taxes (state, local, and payroll) $262,500 262,500 $15,000 20,000 $525,000 725,000 238,000 $5,750,000 (200,000) $5,550,000 (2,300,000) $3,250,000 43,750 35,000 $3,328,750

Answer rating: 100% (QA)

The steps to fill the Form 1120 US Corporation Income Tax Return using the data you provided 1 Income Deductions Tax Refundable Credits Payments Income Line 1a Total income 5750000 Line 1b Returns and ... View the full answer