On February $15,2005,$ SpongeBob Squarepants and Eugene Krabs formed Krusty Krab Corporation to sell fast food as a full service

restaurant. Information regarding Krusty Krab Corp. is summarized as follows:

Krusty Krab Corporation is located at $1300$ Conch Street, Bikini Bottom, MI $41010.$ The employer identification number is $11-$

$2222222$

SpongeBob owns $50\%$ of the common stock and is vice president of the company. Mr$.$ Krabs owns $50\%$ of the common stock and is

president of the company.

Both SpongeBob and Mr$.$ Krabs are full$-$time employees of the company. SpongeBob's Social Security number is $987-65-4321.$ Mr$.$

Krab's is $123-45-6789.$

Krusty Krab Corp is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or

market method. They use the straight$-$line method of depreciation for book purposes and accelerated depreciation $($MACRS$)$ for tax

purposes.

During $2023,$ the corporation distributed cash dividends of $$140,000.$

Depreciation under MACRS rules would be $$45,100$ for $2023.($You are not required to file Form $4562$ for this assignment$)$

During $2023,$ Krusty Krab Corp. made estimated payments of $$28,000$ each quarter to the IRS.

Prepare Form $1120,$ pages $1-6$ for $2023.$ You do not need to complete Schedule K$,$ Schedule L or supporting

Forms $1125-$A and $1125-$E$.$