How would the schedule M-3 for this problem be prepared?

On November 1, 2008, 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 . The employer identification number is 11-1111111, and the principal business . Janet and Kim each own 50% of the common stock, Janet is president and Kimis . Both Janet and Kim are full-time employees of Pet Kingdom. Janet's Social Security . Pet Kingdom is an accrual method, calendar year taxpayer. Inventories telephone number is (214) 555-2211, and its e-mail address is petkingdom@pki.com activity code is 453910. vice president of the company. No other class of stock is authorized. number is 123-45-6789, and Kim's Social Security number is 987-65-4321. mined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated deprecia- tion (MACRS) for tax purposes . During 2018, the corporation distributed cash dividends of $250,000. Pet Kingdom's financial statements for 2018 are shown below. Income Statement Income Gross sales Sales returns and allowances Net sales Cost of goods sold Gross profit Dividends received from stock $ 5,750,000 (200,000) $ 5,550,000 2,300,000) $ 3,250,000 investments in less-than-20%- owned U.S. corporations 43,750 Interest income: State bonds Certificates of deposit S 15,000 20,000 35,000 Total income $ 3,328,750 continued PART 2 $262,500 5525,000 725,000 238,000 140,000 Salariesoffices lanet Morton Km Won Salaries clerical and sales Taxes istate, local and payrell) Repairs and maintenance Interest expense 216,000 58,000 109,000 106,000 38,000 60,000 Loan to purchase state bonds Other business loans Rental expense Depreciation Charitable contributions Employee benefit programs Premiums on term life insurance policies on lives of Janet Morton and 40,000 Kim Wong: Pet Kingdom is the designated beneficiary Total expenses Net income before taxes Federal income tax Net income per books $1,073,750 on fo tax purposes is 51 36,000 You are not provided enough detailed data to complete a Form 45t2 deprecation, If you sobee this problem using Intut ProConnect, enter the amount of depr ine 20 of Form 1120 Balance Sheet January 1, 2018 s 1,200,000 2,062,500 2,750,000 1,125,000 375,000 400,000 December 31, 2018 Assets Cash Trade notes and accounts receivable Stock investment State bonds Certificates of deposit Prepaid Federal tax Buildings and other depreciable assets Accumulated depreciation Land Other assets S 1,039,461 2,147,000 3,030,000 1,125,000 375,000 400,000 2,266 5,455,000 (712,000) 812,500 128,500 $13,802,727 5,455,000 (606,000) 812,500 140,000 Total assets 513,714000 Liabilities and Equity Accounts payable Other current liabilities Mortgages Capital stock Retained earnings January 1, 2018 December 31,2018 2,284,000 175,000 4,625,000 2.500,000 $ 1,840,711 155,000 4,575,000 2,500,000 4,732,016 Total liabilities and equity During 2018, Pet Kingdom made estimated tax payments of $56,000 each quarter t the IRS. Prepare a Form 1120 for Pet Kingdom for tax year 2018 (if the final 2015 1120 is not available, see if a draft 2018 Form 1120 is available on the IRS wer