Note: This problem is for the 2021 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 1005 16th Street, Cut and Shoot, TX 77303. Premium's S election was made on January 15, 2012, its date of incorporation. The following information was taken from the company's 2021 income statement.

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): $100,000Beginning balance, Accumulated adjustments account:111,148Ordinary business income for QBI:639,574W-2 wages for QBI:795,205UBIA of qualified property125,000

Required:

Prepare Premium's Form 1120S, Additional Information - Continuation Statement, and Schedule K-1s for John Parsons and George Smith, 5607 20th Street, Cut and Shoot, TX 77303.

• 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.