Note: This problem is for the 2019 tax year. On February 12, 2005, 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 number is (218) 555-2211; and its e-mail address is kingfisher@kf.com. The employer identification number is 11-1111113, 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 Security number is 123-45-6788, and Delores's Social Security number is 123-45-6787. 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 2019, the corporation distributed cash dividends of $80,000. Kingfisher's financial statements for 2019 are shown below and on the next page. Income Statement Income Gross sales Sales returns and allowances Net sales $2,408,000 (80,000) $2,328,000 (920,000) $1,408,000 Cost of goods sold Gross profit Dividends received from stock investments in less-than-20%- owned U.S. corporations 12,000 Interest income: State bonds $14,000 10,000 Certificates of deposit 24,000 Total income $1,444,000 Expenses Salaries-officers: Nancy Trout $160,000 Delores Lake 160,000 $320,000 Salaries-clerical and sales 290,000 Taxes (state, local, and payroll) Repairs and maintenance 85,000 56,000 Interest expense: Business loans $12,000 8,000 20,000 Loan to purchase state bonds Advertising Rental expense Depreciation* 6,000 68,000 40,000 15,000 24,000 Charitable contributions Employee benefit programs Premiums on term life insurance policies on lives of Nancy Trout and Delores Lake; Kingfisher is the designated beneficiary 16,000 Total expenses Net income before taxes (940,000) $504,000 (106,680) $397,320 Federal income tax Net income per books * You are not provided enough detailed information to complete a Form 4562 (depreciation). Balance Sheet Assets January 1, 2019 December 31, 2019 Cash Trade notes and accounts receivable $380,000 308,400 900,000 160,000 Inventories State bonds Federal income tax refund -0- Certificates of deposit $337,300 480,280 1,012,000 160,000 1,320 140,000 300,000 240,000 (128,800) 20,000 2,000 Stock investments 140,000 300,000 240,000 (88,800) 20,000 3,600 $2,363,200 Buildings and other depreciable assets Accumulated depreciation Land Other assets Total assets $2,564,100 December 31, 2019 Liabilities and Equity Accounts payable January 1, 2019 $300,000 80,300 210,000 Other current liabilities $233,880 40,000 200,000 Mortgages Balance Sheet Assets January 1, 2019 December 31, 2019 Cash Trade notes and accounts receivable $380,000 308,400 900,000 160,000 Inventories State bonds Federal income tax refund -0- Certificates of deposit $337,300 480,280 1,012,000 160,000 1,320 140,000 300,000 240,000 (128,800) 20,000 2,000 Stock investments 140,000 300,000 240,000 (88,800) 20,000 3,600 $2,363,200 Buildings and other depreciable assets Accumulated depreciation Land Other assets Total assets $2,564,100 December 31, 2019 Liabilities and Equity Accounts payable January 1, 2019 $300,000 80,300 210,000 Other current liabilities $233,880 40,000 200,000 Mortgages Capital stock Retained earnings 500,000 1,272,900 $2,363,200 500,000 1,590,220 $2,564,100 Total liabilities and equity Required: During 2019, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare a Form 1120 for Kingfisher for tax year 2019. If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers, unless otherwise instructed. If required, round amounts to the nearest dollar. Make realistic assumptions about any missing data. Capital stock Retained earnings 500,000 1,272,900 $2,363,200 500,000 1,590,220 $2,564,100 Total liabilities and equity Required: During 2019, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare a Form 1120 for Kingfisher for tax year 2019. If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers, unless otherwise instructed. If required, round amounts to the nearest dollar. Make realistic assumptions about any missing data. Note: This problem is for the 2019 tax year. On February 12, 2005, 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 number is (218) 555-2211; and its e-mail address is kingfisher@kf.com. The employer identification number is 11-1111113, 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 Security number is 123-45-6788, and Delores's Social Security number is 123-45-6787. 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 2019, the corporation distributed cash dividends of $80,000. Kingfisher's financial statements for 2019 are shown below and on the next page. Income Statement Income Gross sales Sales returns and allowances Net sales $2,408,000 (80,000) $2,328,000 (920,000) $1,408,000 Cost of goods sold Gross profit Dividends received from stock investments in less-than-20%- owned U.S. corporations 12,000 Interest income: State bonds $14,000 10,000 Certificates of deposit 24,000 Total income $1,444,000 Expenses Salaries-officers: Nancy Trout $160,000 Delores Lake 160,000 $320,000 Salaries-clerical and sales 290,000 Taxes (state, local, and payroll) Repairs and maintenance 85,000 56,000 Interest expense: Business loans $12,000 8,000 20,000 Loan to purchase state bonds Advertising Rental expense Depreciation* 6,000 68,000 40,000 15,000 24,000 Charitable contributions Employee benefit programs Premiums on term life insurance policies on lives of Nancy Trout and Delores Lake; Kingfisher is the designated beneficiary 16,000 Total expenses Net income before taxes (940,000) $504,000 (106,680) $397,320 Federal income tax Net income per books * You are not provided enough detailed information to complete a Form 4562 (depreciation). Balance Sheet Assets January 1, 2019 December 31, 2019 Cash Trade notes and accounts receivable $380,000 308,400 900,000 160,000 Inventories State bonds Federal income tax refund -0- Certificates of deposit $337,300 480,280 1,012,000 160,000 1,320 140,000 300,000 240,000 (128,800) 20,000 2,000 Stock investments 140,000 300,000 240,000 (88,800) 20,000 3,600 $2,363,200 Buildings and other depreciable assets Accumulated depreciation Land Other assets Total assets $2,564,100 December 31, 2019 Liabilities and Equity Accounts payable January 1, 2019 $300,000 80,300 210,000 Other current liabilities $233,880 40,000 200,000 Mortgages Balance Sheet Assets January 1, 2019 December 31, 2019 Cash Trade notes and accounts receivable $380,000 308,400 900,000 160,000 Inventories State bonds Federal income tax refund -0- Certificates of deposit $337,300 480,280 1,012,000 160,000 1,320 140,000 300,000 240,000 (128,800) 20,000 2,000 Stock investments 140,000 300,000 240,000 (88,800) 20,000 3,600 $2,363,200 Buildings and other depreciable assets Accumulated depreciation Land Other assets Total assets $2,564,100 December 31, 2019 Liabilities and Equity Accounts payable January 1, 2019 $300,000 80,300 210,000 Other current liabilities $233,880 40,000 200,000 Mortgages Capital stock Retained earnings 500,000 1,272,900 $2,363,200 500,000 1,590,220 $2,564,100 Total liabilities and equity Required: During 2019, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare a Form 1120 for Kingfisher for tax year 2019. If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers, unless otherwise instructed. If required, round amounts to the nearest dollar. Make realistic assumptions about any missing data. Capital stock Retained earnings 500,000 1,272,900 $2,363,200 500,000 1,590,220 $2,564,100 Total liabilities and equity Required: During 2019, Kingfisher made estimated tax payments of $27,000 each quarter to the IRS. Prepare a Form 1120 for Kingfisher for tax year 2019. If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers, unless otherwise instructed. If required, round amounts to the nearest dollar. Make realistic assumptions about any missing data