Form 1120 for Kingfisher for tax year 2012 by ella | Mar 26, 2024 | Finance During 2012, Pet Kingdom made estimated tax payments of $107,000 each quarter tothe IRS. Prepare a Form 1120 for Pet Kingdom for tax year 2012. Suggested software:H&R BLOCK At Home.2. On February 12, 2002, Nancy Trout and Delores Lake formed Kingfisher Corporation tosell 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 11-1111111, and the principal business activitycode is 451110.• Nancy owns 50% of the common stock and is president of the company, and Deloresowns 50% of the common stock and is vice president of the company. No other classof stock is authorized.• Both Nancy and Delores are full-time employees of Kingfisher. Nancy’s Social Security number is 123-45-6789, and Delores’s Social Security number is 987-65-4321.• Kingfisher is an accrual method, calendar year taxpayer. Inventories are determinedusing FIFO and the lower of cost or market method. Kingfisher uses the straight-linemethod of deprecation for book purposes and accelerated depreciation (MACRS)for tax purposes.• During 2012, the corporation distributed cash dividends of $64,000.Kingfisher’s financial statements for 2012 are shown below.Income StatementIncomeGross sales$1,884,000Sales returns and allowances (64,000)Net sales$1,820,000Cost of goods sold(736,000)IncomeGross profitDividends received from stockinvestments in less-than-20%-ownedU.S. corporationsInterest incomeState bonds$2,500Certificates of deposit4,000Total incomeExpensesSalaries—officersNancy TroutDelores LakeSalaries—clerical and salesTaxes (state, local, and payroll)Repairs and maintenanceInterest expense: $150,000150,000 $1,084,0009,0006,500$1,099,500 $300,000232,00068,00045,000 Business loans$10,000Loan to purchase state bonds1,80011,800Advertising5,000Rental expense38,000Depreciation*32,000Charitable contributions12,000Employee benefit programs19,000Premiums on term life insurance policieson lives of Nancy Trout and DeloresLake; Kingfisher is the designatedbeneficiary12,800Legal and accounting services16,000Total expenses(791,600)Net income before taxes$ 307,900Federal income tax(105,593)Net income per books$ 202,307* You are not provided enough detailed information to complete a Form 4562 (depreciation). Ifyou solvethis problem using H&R BLOCK At Home, enter the amount of deprecation on line 20 of Form1120.Balance SheetAssetsJanuary 1, 2012 December 31, 2012Cash$384,000$287,780Trade notes and accounts receivable 547,000668,000Inventories480,000569,600State bonds60,00060,000Federal income tax refund–0–2,407Certificates of deposit80,00080,000Stock investments100,000100,000Building and other depreciable assets 192,000192,000Accumulated depreciation(71,040)(103,040)Land116,000116,000Other assets2,8801,600Total assets$1,890,840$1,974,347Liabilities and EquityAccounts payableOther current liabilitiesMortgagesCapital stockRetained earningsTotal liabilities and equity January 1, 2012 December 31, 2012$240,000$220,44064,24032,000168,000165,000400,000400,0001,018,6001,156,907$1,890,840$1,974,347 During 2012, Kingfisher made estimated tax payments of $27,000 each quarter to theIRS. Prepare a Form 1120 for Kingfisher for tax year 2012. Suggested software: H&R Order a similar assignment, and have writers from our team of experts write it for you, guaranteeing you an A