Note: This problem is for the $2022$ tax year.

John Parsons $(123-45-6781)$ and George Smith $(123-45-6782)$ are $70\%$ and $30\%$ owners, respectively, of Premium, Inc. $(11-1111120),$ a candy company located at $100516$th Street, Cut and Shoot, TX $77303.$ Premium's S election was made on January $15,2013,$ its date of incorporation. The following information was taken from the company's $2022$ income statement.

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Interest income$ $100,000$Gross sales receipts$2,410,000$Beginning inventory$9,607$Direct labor$(203,102)$Direct materials purchased$(278,143)$Direct other costs$(249,356)$Ending inventory$3,467$Salaries and wages$(442,103)$Officers$\text{'}$ salaries $($$$75,000$ each to Parsons and Smith$)(150,000)$Repairs$(206,106)$Depreciation expense, tax and book$(15,254)$Interest expense$(35,222)$Rent expense $($operating$)(40,000)$Taxes$(65,101)$Charitable contributions $($cash$)(20,000)$Advertising expenses$(20,000)$Payroll penalties$(15,000)$Other deductions$(59,899)$Book income$704,574$

A comparative balance sheet appears below.

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$$January $1,2022$December $31,2022$Cash$ $47,840$$ $?$Accounts receivable$93,100123,104$Inventories$9,6073,467$Prepaid expenses$8,33317,582$Building and equipment$138,203185,348$Accumulated depreciation$(84,235)(?)$Land$2,0002,000$Total assets$$214,848$$$844,422$Accounts payable$ $42,500$$ $72,300$Notes payable $($less than $1$ year$)4,5002,100$Notes payable $($more than $1$ year$)26,70024,300$Capital stock $(100$ shares outstanding$)30,00030,000$Retained earnings$$111,148?$Total liabilities and capital$$214,848$$$844,422$

Premium's accounting firm provides the following additional information.

Distributions to shareholders $($not reported on Form $1099-$DIV and

made based on percentage of ownership$)$:

$$100,000$Beginning balance, Accumulated adjustments account:$111,148$Ordinary business income for QBI:$639,574$W$-2$ wages for QBI:$795,205$UBIA of qualified property$125,000$

Required:

Complete the $2022$ Form $1120$S for Premium, Inc., Additional Information $-$ Continuation Statement, and Schedule K$-1$s for John Parsons and George Smith, $560720$th Street, Cut and Shoot, TX $77303.$