FORM 1120 S
Note: This problem is for the 2020 tax year.
John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of
Premium, Inc. (11-1111120), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303. Premium's
S election was made on January 15, 2012, its date of incorporation. The following information was taken from the
company's 2020 income statement.
Interest income $ 100,000
Gross sales receipts 2,410,000
Beginning inventory 9,607
Direct labor (203,102)
Direct materials purchased (278,143)
Direct other costs (249,356)
Ending inventory 3,467
Salaries and wages (442,103)
Officers' salaries ($75,000 each to Parsons and Smith) (150,000)
Repairs (206,106)
Depreciation expense, tax and book (15,254)
Interest expense (35,222)
Rent expense (operating) (40,000)
Taxes (65,101)
Charitable contributions (cash) (20,000)
Advertising expenses (20,000)
Payroll penalties (15,000)
Other deductions (59,899)
Book income 704,574
A comparative balance sheet appears below.
January 1, 2020 December 31, 2020
Cash $ 47,840 $ ?
Accounts receivable 93,100 123,104
Inventories 9,607 3,467
Prepaid expenses 8,333 17,582
Building and equipment 138,203 185,348
Accumulated depreciation (84,235) (?)
Land 2,000 2,000
Total assets $214,848 $844,422
Accounts payable $ 42,500 $ 72,300
Notes payable (less than 1 year) 4,500 2,100
Notes payable (more than 1 year) 26,700 24,300
Capital stock 30,000 30,000
Instructions
Retained earnings $111,148 ?
Total liabilities and capital $214,848 $844,422
Premium's accounting firm provides the following additional information.
Distributions to shareholders (not reported on Form 1099-DIV and
made based on percentage of ownership): $100,000
Beginning balance, Accumulated adjustments account: 111,148
Ordinary business income for QBI: 639,574
W-2 wages for QBI: 795,205
Required:
Prepare Premium's Form 1120S, Additional Information - Continuation Statement, and Schedule K-1s for John
Parsons and George Smith, 5607 20th Street, Cut and Shoot, TX 77303.
If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers, unless otherwise instructed. If required, round amounts to the nearest dollar. Make realistic assumptions about any missing data.
Form 1120-S
Complete the Form 1120-S for Premium, Inc.
Note: You are not required to complete Form 1125-A Cost of goods sold.
Form 1120-S
Department of the Treasury Internal Revenue
Service
U.S. Income Tax Return for an S
Corporation
► Do not file this form unless the corporation has filed or
is attaching Form 2553 to elect to be an S corporation.
► Go to www.irs.gov/Form1120S for instructions and the lat
information.
For calendar year 2020 or tax year beginning , 2020, ending ,
A S election effective date
1/15/2012
TYPE
OR
Premium, Inc.
1005 16th Street
Cut and Shoot, TX 77303
D Employer identification number
11-1111120
B Business activity code
number (see instructions)
311300
E Date incorporated
1/15/2012
C Check if Schedule
M-3 attached ☐ F Total assets (see instructions)
$
G Is the corporation electing to be an S corporation beginning with this tax year? ☐ Yes ☒ No If "Yes," attach For
filed
H Check if: (1) ☐ Final return (2) ☐ Name change (3) ☐ Address change (4) ☐ Amended return (5) ☐ S
revocation
I Enter the number of shareholders who were shareholders during any part of the tax year . . . . . . . . . . . . . . . . .
J Check if corporation: (1) ☐ Aggregated activities for section 465 at-risk purposes (2) ☐ Grouped activities for
ti it
activity purposes
Caution: Include only trade or business income and expenses on lines 1a through 21. See the instructions for mor
1a Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a
b Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b
c Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Net gain (loss) from Form 4797, line 17 (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Other income (loss) (see instrs — att statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Total income (loss). Add lines 3 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ► 6
7 Compensation of officers (see instructions – attach Form 1125-E) . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
9 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
12 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
13 Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
14 Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . . . . . . . . . . 14
15 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
16 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
17 Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
18 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Other deductions (attach statement) 19
20 Total deductions. Add lines 7 through 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ► 20
21 Ordinary business income (loss). Subtract line 20 from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . 2
22a Excess net passive income or LIFO recapture tax (see instructions) . . . . . . 22a
b Tax from Schedule D (Form 1120-S) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22b
c Add lines 22a and 22b (see instructions for additional taxes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
23a 2020 estimated tax payments and 2019 overpayment credited to 2020 . . . 23a
b Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23b
c Credit for federal tax paid on fuels (attach Form 4136) . . . . . . . . . . . . . . . 23c
d Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23d
e Add lines 23a through 23d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
24 Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . . . . . . . . . . . . . ► ☐ 24
25 Amount owed. If line 23e is smaller than the total of lines 22c and 24, enter amount owed . . . . . . 25
26 Overpayment. If line 23e is larger than the total of lines 22c and 24, enter amount overpaid . . . . . 26
27 Enter amount from line 26: Credited to 2021 estimated tax ► Refunded ► 27
Sign
Here
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules an
the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than ta
information of which preparer has any knowledge.
► ►
May the IRS discuss this return with the preparer shown below? Se
☐ NoSignature of
officer
Date Title
► ► Paid Preparer Use Only Print/Type preparer's name Preparer's signature
Self-Prepared
Date Check ☐ if self-employed
Firm's name ► Firm's EIN ►
Firm's address ► Phone no.
BAA For Paperwork Reduction Act Notice, see separate instructions. Form 1120-S (2020)
Form 1120-S (2020) Premium, Inc. 11-1111120 Page 2
Schedule B Other Information (see instructions) Yes No
1 Check accounting method: a ☐ Cash b ☒ Accrual c ☐ Other (specify) ►
2 See the instructions and enter the:
a Business activity ► Food Processing b Product or service ► Candy
3 At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, o
similar person? If "Yes," attach Schedule B-1, Information on Certain Shareholders of an S Corporation . . .
4 At the end of the tax year, did the corporation:
a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total stock issued and outstanding o
domestic corporation? For rules of constructive ownership, see instructions. If "Yes," complete (i) through (v) bel
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(i) Name of
Corporation
(ii) Employer Identification
Number (if any)
(iii) Country of
Incorporation
(iv) Percentage of
Stock Owned
(v) If Perce
Enter the D
Subchapter
b
Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in
the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a
partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions.
If "Yes," complete (i) through (v) below . . . . . . . . . . .
(i) Name of
Entity
(ii) Employer Identification
Number (if any)
(iii) Type of
Entity
(iv) Country of
Organization
(v) Maximum Percent
Loss, or
5
a At the end of the tax year, did the corporation have any outstanding shares of restricted stock? . . . . . . . . . . . .
If "Yes," complete lines (i) and (ii) below.
(i) Total shares of restricted stock . . . . . . . . . . . . . . . . . . . . . . . . . . . ►
(ii) Total shares of non-restricted stock . . . . . . . . . . . . . . . . . . . . . . . . ►
b At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instrume
If "Yes," complete lines (i) and (ii) below.
(i) Total shares of stock outstanding at the end of the tax year ►
(ii) Total shares of stock outstanding if all instruments were executed ►
6 Has this corporation filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide
reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . . . .
If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue
Instruments.
8 If the corporation (a) was a C corporation before it elected to be an S corporation or the corporation acquired a
determined by reference to the basis of the asset (or the basis of any other property) in the hands of a C corpor
net unrealized built-in gain in excess of the net recognized built-in gain from prior years, enter the net unrealize
reduced by net recognized built-in gain from prior years.
See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ► $
9 Did the corporation have an election under section 163(j) for any real property trade or business or any farming
during the tax year? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Does the corporation satisfy one or more of the following? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . .
a The corporation owns a pass-through entity with current, or prior year carryover, excess business interest expen
b The corporation's aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax year
current tax year are more than $26 million and the corporation has business interest expense.
c The corporation is a tax shelter and the corporation has business interest expense.
If "Yes," complete and attach Form 8990.
11
Does the corporation satisfy both of the following conditions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a The corporation's total receipts (see instructions) for the tax year were less than $250,000.
b The corporation's total assets at the end of the tax year were less than $250,000.
If "Yes," the corporation is not required to complete Schedules L and M-1.
Form 1120-S (2020)
Form 1120-S (2020) Premium, Inc. 11-1111120 Page 3
Schedule B Other Information (see instructions) (continued) Yes No
12
During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had
so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If "Yes," enter the amount of principal reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ► $
13
During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If "Yes," see instruc
14
a Did the corporation make any payments in 2020 that would require it to file Form(s) 1099? . . . . . . . . . . . . . . .
b If "Yes," did the corporation file or will it file required Form(s) 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund? . . . . . . . . . . . . . . . . . . . . .
If "Yes," enter the amount from Form 8996, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ► $
Schedule K Shareholders' Pro Rata Share Items Total amount
1 Ordinary business income (loss) (page 1, line 21) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 a Other gross rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . 3a
b f h l ( h ) b
b Expenses from other rental activities (attach statement) . . . . 3b
c Other net rental income (loss). Subtract line 3b from line 3a . . . . . . . . . . . . . . . . . . . . . . . . 3c
4 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5a
b Qualified dividends . . . . . . . . . . . . . . . . . . . . . . 5b
6 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Net short-term capital gain (loss) (attach Schedule D (Form 1120-S)) . . . . . . . . . . . . . . . . . . 7
8 a Net long-term capital gain (loss) (attach Schedule D (Form 1120-S)) . . . . . . . . . . . . . . . . . . 8a
b Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . 8b
c Unrecaptured section 1250 gain (attach statement) . . . . . . . . 8c
9 Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Other income (loss) (see instructions) . . . . . . Type ► 10
11 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
12a Charitable contributions 12a
b Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12b
c Section 59(e)(2) expenditures . . . . . . . . . . . . Type ► _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 12c (2
d Other deductions (see instructions) . . . . . . . . . Type ► 12d
13a Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a
b Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13b
c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) . . . 13c
d Other rental real estate credits (see instrs) . . Type ► _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 13d
e Other rental credits (see instructions) . . . . . Type ► _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 13e
f Biofuel producer credit (attach Form 6478) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13f
g Other credits (see instructions) . . . . . . . . . . Type ► 13g
14a Name of country or U.S. possession ► _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
b Gross income from all sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14b
c Gross income sourced at shareholder level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c
Foreign gross income sourced at corporate level
d Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14d
e Foreign branch category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14e
f Passive category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14f
g General category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14g
h Other (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14h
Deductions allocated and apportioned at shareholder level
i Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14i
j Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14j
Deductions allocated and apportioned at corporate level to foreign source income
k Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14k
l Foreign branch category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14l
m Passive category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14m
n General category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14n
o Other (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14o
Other information
p Total foreign taxes (check one): ► ☐ Paid ☐ Accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14p
d l bl f d
q Reduction in taxes available for credit
(attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14q
r Other foreign tax information (attach statement)
BAA Form 1120-S (2020)
Form 1120-S (2020) Premium, Inc. 11-1111120 Page 4
Schedule K Shareholders' Pro Rata Share Items (continued) Total amount
15a Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c Depletion (other than oil and gas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d Oil, gas, and geothermal properties — gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e Oil, gas, and geothermal properties — deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
f Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16a Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d Distributions (attach stmt if required) (see instrs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e Repayment of loans from shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17a Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c Dividend distributions paid from accumulated earnings and profits . . . . . . . . . . . . . . . . . . . . . .
d Other items and amounts
(attach statement)
18 Income (loss) reconciliation. Combine the amounts on lines 1 through 10 in the far right column. F
subtract the sum of the amounts on lines 11 through 12d and 14p . . . . .
Schedule L Balance Sheets per Books Beginning of tax year End of tax year
Assets (a) (b) (c) (d)
1 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2a Trade notes and accounts receivable . . . . . . . . . .
b Less allowance for bad debts . . . . . . . . . . . . . . .
3 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 U.S. government obligations . . . . . . . . . . . . . . . .
5 Tax-exempt securities (see instructions) . . . . . . .
6 Other current assets (attach stmt)
7 Loans to shareholders . . . . . . . . . . . . . . . . . . . .
8 Mortgage and real estate loans . . . . . . . . . . . . . .
9 Other investments (attach statement) . . . . . . . .
10a Buildings and other depreciable assets . . . . . . . .
b Less accumulated depreciation . . . . . . . . . . . . . .
11a Depletable assets . . . . . . . . . . . . . . . . . . . . . . .
b Less accumulated depletion. . . . . . . . . . . . . . . . .
12 Land (net of any amortization) . . . . . . . . . . . . . .
13a Intangible assets (amortizable only) . . . . . . . . . .
b Less accumulated amortization . . . . . . . . . . . . . .
14 Oth t ( tt h t t)
14 Other assets (attach stmt) . . . . . . . . . . . . . . . . .
15 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities and Shareholders' Equity
16 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . .
17 Mortgages, notes, bonds payable in less than 1 year
18 Other current liabilities (attach stmt) . . . . . . . . .
19 Loans from shareholders . . . . . . . . . . . . . . . . . .
20 Mortgages, notes, bonds payable in 1 year or more
21 Other liabilities (attach statement) . . . . . . . . . . .
22 Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . .
23 Additional paid-in capital . . . . . . . . . . . . . . . . . .
24 Retained earnings . . . . . . . . . . . . . . . . . . . . . . .
25 Adjustments to shareholders' equity (attach stmt) . . .
26 Less cost of treasury stock . . . . . . . . . . . . . . . . .
27 Total liabilities and shareholders' equity . . . . . . .
Form 1120-S (2020)
Form 1120-S (2020) Premium, Inc. 11-1111120 Page 5
Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return
Note: The corporation may be required to file Schedule M-3. See instructions.
1 Net income (loss) per books . . . . . . . . . . . .
2 Income included on Schedule K, lines 1, 2, 3c, 4, 5a, 6, 7, 8a, 9,
and 10, not recorded on books this year (itemize): _ _ _ _ _ _ _ _
3 Expenses recorded on books this year not included on Schedule K,
lines 1 through 12 and 14p (itemize):
a Depreciation $_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _
b Travel and entertainment $ _ _ _ _ _ _ _ _
4 Add lines 1 through 3 . . . . . . . . . . . . . . . .
5 Income recorded on books this year no
Schedule K, lines 1 through 10 (itemize
a Tax-exempt interest $ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
6 Deductions included on Schedule K, line
14p, not charged against book income
a Depreciation $ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
7 Add lines 5 and 6 . . . . . . . . . . . . . . .
8 Income (loss) (Schedule K, line 18). Su
line 4 . . . . . . . . . . . . . . . . . . . . .
Schedule
M–2
Analysis of Accumulated Adjustments Account, Shareholders' Undistributed Taxable Income P
Accumulated Earnings and Profits, and Other Adjustments Account
(see instructions)
(a) Accumulated
adjustments account
(b) Shareholders' undistributed
taxable income previously taxed
(c) Accumulate
earnings and prof
1 Balance at beginning of tax
year . . . . . . . . . . . . . .
2 Ordinary income from page 1,
line 21 . . . . . . . . . . .
3 Other additions
4 Loss from page 1, line 21 . . . .
. . . . . . . . . . . . . . . .
5 Other reductions
(
)
6 Combine lines 1 through 5 . . .
. . . . . . . . . . . . . . . .
7 Distributions . . . . . . . . . . . . .
. . . . . . . . . . . . . . .
8 Balance at end of tax year.
Subtract line 7 from line 6.
Schedule K-1 for John Parsons
Prepare the Schedule K–1 for John Parsons.
If required, round amounts to the nearest dollar.
Note:
Box 12: Code A is is to report cash charitable contributions.
Box 16: Code C is used to report nondeductible expenses, and Code D is used to report distributions not reported on
Box 17: Code A is used to report Investment income, Code AC is used to report gross receipts for Section 448(c) pu
Box 17: Code V is used to report information required for the QBI deduction. You are not required to provide a state
◻ Final K-1 ◻ Amended K-1
Schedule K-1
(Form 1120-S) 2020 Part III Shareholder's Share of Cur
Deductions, Credits, and Ot
Department of the Treasury Internal
Revenue Service
For calendar year 2020,
or tax 1 Ordinary business income
(loss)
13 Credits
2 Net rental real estate
income (loss)
3 Other net rental income
(loss)
4 Interest income
5a Ordinary dividends
5b Qualified dividends 14 Foreign
6 Royalties
h l
beginning / / ending / /
Shareholder's Share of Income, Deductions,
Credits, etc. ► See separate instructions.
Part I Information About the Corporation
A Corporation's employer identification number
11-1111120
B Corporation's name, address, city, state, and ZIP code
Premium, Inc.
1005 16th Street
Cut and Shoot, TX 77303
C IRS Center where corporation filed return
e-file
Part II Information About the Shareholder
7 Net short-term capital gain
(loss)
8a Net long-term capital gain
(loss)
8b Collectibles (28%) gain
(loss)
8c Unrecaptured section 1250
gain
9 Net section 1231 gain
(loss)
10 Other income (loss) 15 Alternat
(AMT) i
11 Section 179 deduction 16
C
Items a
basis
12
A
Other deductions
D
17 Other in
A
AC
V* STMT
D Shareholder's identifying number
123-45-6781
E Shareholder's name, address, city, state, and ZIP code
John Parsons
5607 20th Street
Cut and Shoot, TX 77303
F Current year allocation percentage . . .
%
G Shareholder's number of shares
Beginning of tax year . . . . . . . . . . . .
End of tax year . . . . . . . . . . . . . . . .
H Loans from shareholder
Beginning of tax year . . . . . . . . . . . . $
End of tax year . . . . . . . . . . . . . . . . $
F
O
R
I
R
S
U
S
E
O
N
L
Y
18 ☐ More than one activity for at-risk purp
19 ☐ More than one activity for passive act
*See attached statement for addition
For Paperwork Reduction Act Notice, see the Instructions for Form 1120-S.
Shareholder 1
www.irs.gov/Form1120S Schedule K-1 (Form 1120
Schedule K-1 for George Smith
Prepare the Schedule K-1 for George Smith.
If required, round amounts to the nearest dollar.
Note:
Box 12: Code A is is to report cash charitable contributions.
Box 16: Code C is used to report nondeductible expenses, and Code D is used to report distributions not reported on
B 17 C d A i d t t I t t i C d AC i d t t i t f S ti 448( )
Box 17: Code A is used to report Investment income, Code AC is used to report gross receipts for Section 448(c) pu
Box 17: Code V is used to report information required for the QBI deduction. You are not required to provide a state
◻ Final K-1 ◻ Amended K-1
Schedule K-1
(Form 1120-S) 2020 Part III Shareholder's Share of Cur
Deductions, Credits, and Ot
Department of the Treasury Internal
Revenue Service
For calendar year 2020,
or tax 1 Ordinary business income
(loss)
13 Credits
2 Net rental real estate
income (loss)
3 Other net rental income
(loss)
4 Interest income
5a Ordinary dividends
5b Qualified dividends 14 Foreign
6 Royalties
7 Net short-term capital gain
(loss)
8a Net long-term capital gain
(loss)
8b Collectibles (28%) gain
(loss)
8c Unrecaptured section 1250
gain
9 Net section 1231 gain
(loss)
10 Other income (loss) 15 Alternat
(AMT) i
11 Section 179 deduction 16
C
Items a
basis
12
A
Other deductions D
beginning / / ending / /
Shareholder's Share of Income, Deductions,
Credits, etc. ► See separate instructions.
Part I Information About the Corporation
A Corporation's employer identification number
11-1111120
B Corporation's name, address, city, state, and ZIP code
Premium, Inc.
1005 16th Street
Cut and Shoot, TX 77303
C IRS Center where corporation filed return
e-file
Part II Information About the Shareholder
D Shareholder's identifying number
123-45-6782
E Shareholder's name, address, city, state, and ZIP code
George Smith
5607 20th Street
Cut and Shoot, TX 77303
F Current year allocation percentage . . .
%
G Shareholder's number of shares
Beginning of tax year . . . . . . . . . . . .
End of tax year . . . . . . . . . . . . . . . .
H Loans from shareholder
Beginning of tax year . . . . . . . . . . . . $
End of tax year . . . . . . . . . . . . . . . . $
F
O
R
I
R
S
10 more Check My Work uses remaining.
17 Other in
A
AC
V* STMT
S
U
S
E
O
N
L
Y 18 ☐ More than one activity for at-risk purp
19 ☐ More than one activity for passive act
*See attached statement for addition
For Paperwork Reduction Act Notice, see the Instructions for Form 1120-S.
Shareholder 2
www.irs.gov/Form1120S Schedule K-1 (Form 1120