Question During 2012, Pet Kingdom made estimated tax payments of $107,000 each quart

$150,000
150,000

$1,084,000
9,000
6,500
$1,099,500

$300,000
232,000
68,000
45,000

Business loans
$10,000
Loan to purchase state bonds
1,800
11,800
Advertising
5,000
Rental expense
38,000
Depreciation*
32,000
Charitable contributions
12,000
Employee benefit programs
19,000
Premiums on term life insurance policies
on lives of Nancy Trout and Delores
Lake; Kingfisher is the designated
beneficiary
12,800
Legal and accounting services
16,000
Total expenses
(791,600)
Net income before taxes
$ 307,900
Federal income tax
(105,593)
Net income per books
$ 202,307
* You are not provided enough detailed information to complete a Form 4562 (depreciation). If
you solve
this problem using H&R BLOCK At Home, enter the amount of deprecation on line 20 of Form
1120.
Balance Sheet
Assets
January 1, 2012 December 31, 2012
Cash
$384,000
$287,780
Trade notes and accounts receivable 547,000
668,000
Inventories
480,000
569,600
State bonds
60,000
60,000
Federal income tax refund
–0–
2,407
Certificates of deposit
80,000
80,000
Stock investments
100,000
100,000
Building and other depreciable assets 192,000
192,000
Accumulated depreciation
(71,040)
(103,040)
Land
116,000
116,000
Other assets
2,880
1,600
Total assets
$1,890,840
$1,974,347
Liabilities and Equity
Accounts payable
Other current liabilities
Mortgages
Capital stock
Retained earnings
Total liabilities and equity

January 1, 2012 December 31, 2012
$240,000
$220,440
64,240
32,000
168,000
165,000
400,000
400,000
1,018,600
1,156,907
$1,890,840
$1,974,347

During 2012, Kingfisher made estimated tax payments of $27,000 each quarter to the
IRS. Prepare a Form 1120 for Kingfisher for tax year 2012. Suggested software: H&R