Form $1120-$S$.($Obj$.5)$ Prince Corporation $($EIN $70-2152973),$ an S corporation, operates as a small variety store on the accrual basis. It is located at $1701$ Governors Drive, College Station, TX $77843.$ The company was incorporated on January $2,1999,$ and elected S corporation status on the same day. The business code is $54.$ John R$.$ Prince $($SSN $201-00-5064)$ and his wife, Joyce B$.$ Prince $($SSN $265-00-8133)$ each own $35\%$ of the corporation's $100$ outstanding shares. Joyce was an original shareholder. Her stock basis was $$12,000$ at the beginning of the year. Together they manage the store. The remaining stock is owned by John's father. John is President; Joyce is VP and Treasurer.

At the end of the calendar year $2022,$ the income statement accounts, balance sheet accounts, and other information taken from the records are as follows.

$\backslash$table$[[$Inventory$,$ January $1,2022($at cost$),29,500],[$Inventory$,$ December $31,2022($at cost$),32,400],[$Purchases $($net$),133,800],[$Sales revenue,$246,500],[$Sales returns and allowances,$15,900],[$Taxable interest income,$4,650],[$Tax exempt interest,$6,000],[$Depreciation expense $("$book$"$ depreciation was $$6,000),5,200],[$Bad debts expense $($book$"$ bad debt expense was $$1,000,1,500],[$Repairs and maintenance,$3,300],[$Interest expense $($business related$),2,700],[$Payroll taxes,$7,800],[$Compensation of officers,$30,000],[$Salaries and wages,$24,500],[$Rental of equipment,$700],[$Charitable contributions,$1,600],[$Advertising$,1,400],[$Distributions made during the year,$24,000],[$Total assets, December $31,2022,108,700]]$

The beginning and ending balance sheets for the year are:

$\backslash$table$[[$Assets$,$January $1,$December $31],[$Cash$,$$$12,000,$$$15,000$