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On February $12,2007,$ Nancy Trout and Delores Lake formed Kingfisher Corporation to sell 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 $11-1111113,$ and the principal business activity code is $451110.$

Nancy owns $50\%$ of the common stock and is president of the company, and Delores owns $50\%$ of the common stock and is vice president of the company. No other class of stock is authorized.

Both Nancy and Delores are full$-$time employees of Kingfisher. Nancy's Social Security number is $123-45-6788,$ and Delores's Social Security number is $123-45-6787.$

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

During $2021,$ the corporation distributed cash dividends of $$80,000.$

Kingfisher's financial statements for $2021$ are shown below.

Income Statement

Income

Gross sales $$2,408,000$

Sales returns and allowances $(80,000)$

Net sales $$2,328,000$

Cost of goods sold $(920,000)$

Gross profit $$1,408,000$

Dividends received from stock

investments in less$-$than$-20\%-$

owned U$.$S$.$ corporations $12,000$

Interest income:

State bonds $$14,000$

Certificates of deposit $10,00024,000$

Total income $$1,444,000$

Expenses

Salaries$$officers:

Nancy Trout $$160,000$

Delores Lake $160,000$ $$320,000$

Salaries$$clerical and sales $290,000$

Taxes $($state$,$ local, and payroll$)85,000$

Repairs and maintenance $56,000$

Interest expense:

Business loans $$12,000$

Loan to purchase state bonds $8,00020,000$

Advertising $6,000$

Rental expense $68,000$

Depreciation$*40,000$

Charitable contributions $($cash$)15,000$

Employee benefit programs $24,000$

Premiums on term life insurance

policies on lives of Nancy Trout and

Delores Lake; Kingfisher is the

designated beneficiary $16,000$

Total expenses $(940,000)$

Net income before taxes $$504,000$

Federal income tax $(106,680)$

Net income per books $$397,320$

$*$ You are not provided enough detailed information to complete a Form $4562($depreciation$).$ If you solve the problem using Intuit ProConnnect, enter the amount of depreciation on line $20$ of Form $1120.$

Balance Sheet

Assets January $1,2021$ December $31,2021$

Cash $$380,000$ $$337,300$

Trade notes and accounts receivable $308,400480,280$

Inventories $900,0001,012,000$

State bonds $160,000160,000$

Federal income tax refund $-0-1,320$

Certificates of deposit $140,000140,000$

Stock investments $300,000300,000$

Buildings and other depreciable assets $240,000240,000$

Accumulated depreciation $(88,800)(128,800)$

Land $20,00020,000$

Other assets $3,6002,000$

Total assets $$2,363,200$ $$2,564,100$

Liabilities and Equity January $1,2021$ December $31,2021$

Accounts payable $$300,000$ $$233,880$

Other current liabilities $80,30040,000$

Mortgages $210,000200,000$

Capital stock $500,000500,000$

Retained earnings $1,272,9001,590,220$

Total liabilities and equity $$2,363,200$ $$2,564,100$

Required:

During $2021,$ Kingfisher made estimated tax payments of $$27,000$ each quarter to the IRS. Prepare Kingfisher's corporate tax return for tax year $2021$ using Form $1120($and any other appropriate forms and schedules$).$

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