John Parsons (123-45-6781) and George Smith (123-45-6782) are 70% and 30% owners, respectively, of Premium, Inc. (11-1111111), a candy company located at 1005 16th Street, Cut and Shoot, TX 77303. The company’s S corporation election was made on January 15, 2008. The following information was taken from the income statement for 2014.
Interest income $ 100,000
Gross sales receipts 2,410,000
Beginning inventory 9,607