On november 1 2016 janet morton and kim wong formed pet


Assignment

On November 1, 2016 Janet Morton and Kim Wong formed Pet Kingdom Inc. to sell pets and pet supplies. Pertinent information regarding Pet King is summarized as follows:

Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX75225; its telephone Number is 214-555-2211.

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.

Depreciation for tax purposes is $136,000. You are not provided enough detailed date to

complete a Form 4562 (depreciation).

The company made payments in 2015 that would require it to file Form(s) 1099, and it had filed all the required Form(s) 1099.

The company paid premiums on term life insurance policies on lives of Janet Morton and Kim Wong; Pet Kingdom is the designated beneficiary.

During 2015, Pet Kingdom made estimated tax payments of $90,000 each quarter to the lRS,

Prepare from 1120 for Pet Kingdom for tax year 2015.

Attachment:- 1120-Tax-Project-facts.rar

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Taxation: On november 1 2016 janet morton and kim wong formed pet
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