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On February 12 2002 Nancy Trout and Delores Lake formed Kingfisher Corporation to sell fishing tackle Pertinent information regarding Kingfisher is summarized as follows Kingfishers business

On February 12, 2002, 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 num- ber is (218) 555-2211; and its e-mail address is kingfisherakf.com. The employer identification number is 11-1111111, and the principal business activity TA 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 p of the company. No other class resident of stock is authorized. Both Nancy and Delores are fulltime employees of Kingfisher. Nancy's Social secu rity 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 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 2013, the corporation distributed cash dividends of$80,000. Kingfisher's financial statements for 2013 are shown below. Income Statement Income Gross sales $2,408,000 Sales returns and allowances (80,000) Net sales $2,328,000 (920,000) Cost of goods sold

 

Apr 18 2020 View more View Less

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