View the step-by-step solution to: Tax Return Problem 1. On November 1, 2005, Janet Morton and Kim

This question was answered on Jul 21, 2013. View the Answer
Here are the forms that should be a part of your manual 1120 return:
1120 pages 1-5, Form 1125-A, Schedule g, Schedule M-3, Form 1125-E, Form 8916-A (supplement attachment to Schedule M-3.
Taxable income is $1,245,750
corporate return.docx

Tax Return Problem
1. On November 1, 2005, Janet Morton and Kim Wong formed Pet Kingdom, Inc., to sell pets and pet supplies.
Pertinent information regarding Pet Kingdom is summarized as follows:

Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is
(214) 555-2211; and its e-mail address is

The employer identification number is 11–1111111, and the principal business activity code is 453910.

Janet and Kim each own 50% of the common stock; Janet is president and Kim is vice president of the
company. No other class of stock is authorized.

Both Janet and Kim are full-time employees of Pet Kingdom. Janet's Social Security number is 123–45–
6789, and Kim's Social Security number is 987–65–4321.

Pet Kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the
lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and
accelerated depreciation (MACRS) for tax purposes.

During 2011, the corporation distributed cash dividends of $300,000.
Pet Kingdom's financial statements for 2011 are shown below.

During 2011, Pet Kingdom made estimated tax payments of $107,000 each quarter to the IRS. Prepare a Form 1120
for Pet Kingdom for tax year 2011.

Sign up to view the entire interaction

Top Answer

Hi, Attached is the... View the full answer - Preview not available

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors and customizable flashcards—available anywhere, anytime.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access or to earn money with our Marketplace.

    Browse Documents
  • 890,990,898

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
  • 890,990,898


    Browse existing sets or create your own using our digital flashcard system. A simple yet effective studying tool to help you earn the grade that you want!

    Browse Flashcards