Error Report For Pet Kingdom, Inc.

:
o 1120 Warning:

The amount entered as buildings and other depreciable

assets at the beginning of tax year on Sch L does not equal
the amount from Form 4562.

o 1120 Warning:

The amount entered as accumulated depreciation at the

beginning of tax year on Sch L does not equal the amount
from Form 4562.

o 1120 Warning:

The amount entered as Land (net of any amortization) at

the beginning of tax year on Sch L does not equal the
amount from Form 4562.

o 1120 Warning:

The amount entered as buildings and other depreciable

assets at the end of tax year on Sch L does not equal the
amount from Form 4562.

o 1120 Warning:

The amount entered as accumulated depreciation at the

end of tax year on Sch L does not equal the amount from
Form 4562.

o 1120 Warning:

The amount entered as Land (net of any amortization) at

the end of tax year on Sch L does not equal the amount
from Form 4562.

o 1120 Warning:

The end-of-year unappropriated retained earnings reported

on Sch L should equal the amount reported on Sch M-2.

o 1120 Error:

If Depreciation has an amount, then Form 4562 must be

attached.

o Sch M-3 (1120) Error:

Line 30, Column A must equal amount on Part I, line 11.

o Sch M-3 (1120) Error:

Line 30, Column D must equal the Taxable Income (Loss),

(Form 1120) Page 1, line 28.

Override and Estimate Report For Pet Kingdom, Inc.:

o 1120 Override:

On Sheet Ln 20 - Deprec you entered a value of "136000"

o 1125-A Override:

On Sheet 1 you entered a value of "2300000"

Form

1120

Department of the Treasury

Internal Revenue Service
A Check if:
1a Consolidated return
(attach Form 851) . .
b Life/nonlife consolidated return . . . . .
2
Personal holding co.
(attach Sch. PH) . . .
3
Personal service corp.
(see instructions) . . .
Schedule M-3 attached

For calendar year 2013 or tax year beginning

, ending

Information about Form 1120 and its separate instructions is at www.irs.gov/form1120 .

Name

B Employer identification number

. . . . . . . . . Pet
. . Kingdom,
. . . . . Inc.
. . . . . . . . . . . . . . . . . . . . . . . . . . .
TYPE
Number, street, and room or suite no. If a P.O. box, see instructions.
. . . . OR
. . . . .1010
. . .Northwest
. . . . . Parkway
. . . . . . . . . . . . . . . . . . . . . . . . . .
State
ZIP code
PRINT City or town
. . . . . . . . . Dallas
. . . . . . . . . . . . . . . . . TX
. . . . . . . . . . 75225
. . . . . . .
Foreign country name
Foreign province/state/county
Foreign postal code
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

E Check if:

(1)

Initial return

(2)

Final return

(3)

Name change

Tax, Refundable Credits,

and Payments

11/1/2005
. D
. . Total
. . assets
. . . (see
. . instructions)
.
. $
. . . . . . . . . 13,802,727
.
Address change

33
34
35
36

Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . . . . . . . . . . . . . .33. . . . . . . . . . . . .
Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed . . . . . . . . . . . . 34
. . . . . . . . .0 . . . . .
Overpayment. If line 32 is larger than the total of lines 31 and 33, enter amount overpaid . . . . . . . . . . . . 35. . . . . . 3,977
. . . . . . .
Enter amount from line 35 you want: Credited to 2014 estimated tax
Refunded
36
3,977

ft

Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . 1a

. . . . . 5,750,000
. . . . . . . . . . . . . . . . . . . .
Returns and allowance . . . . . . . . . . . . . . . . . . . . . . . . . . 1b
. . . . . . 200,000
. . . . . . . . . . . .
Balance. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c
. . . . .5,550,000
. . . . . . . .
Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . 2,300,000
. . . . . . . . .
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 . . . . 3,250,000
. . . . . . . . .
Dividends (Schedule C, line 19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . 43,750
. . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
. . . . . . 20,000
. . . . . . .
Gross rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . .
Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
. . . . . . . . . . . . .
Capital gain net income (attach Schedule D (Form 1120)) . . . . . . . . . . . . . . . . . . . . . . . . .8 . . . . . . . . . . . . .
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . . .. .. .. .. .. .. .. .. .. .. .. 9.. .. .. .. .. .. .. .. .. . . . .
Other income (see instructionsattach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
. . . . . . . . . . . . .
Total income. Add lines 3 through 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
. . . . .3,313,750
. . . . . . . .
Compensation of officers (see instructionsattach Form 1125-E) . . . . . . . . . . . . . . . . . . . . . 12
. . . . . .525,000
. . . . . . .
Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. . . . . 725,000
. . . . . . . .
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
. . . . . 140,000
. . . . . . . .
Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
. . . . . . . . . . . . .
Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. . . . . 109,000
. . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17. . . . .238,000
. . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
. . . . . 207,000
. . . . . . . .
Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. . . . . .38,000
. . . . . . .
Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) . . . . . . . 20. . . . . 136,000
. . . . . . . .
Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
. . . . . . . . . . . . . .
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22. . . . . .58,000
. . . . . . .
Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23. . . . . . . . . . . . .
Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
. . . . . . 60,000
. . . . . . .
Domestic production activities deduction (attach Form 8903) . . . . . . . . . . . . . . . . . . . . . . . 25
. . . . . . . . . . . . .
Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26. . . . . . . . . . . . .
Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
. . . . 2,236,000
. . . . . . . . .
Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11 . . . . . 28
. . . . . 1,077,750
. . . . . . . . .
Net operating loss deduction (see instructions) . . . . . . . . . . . . . . . . . 29a
. . . . . . . . . . . . . . . . . . . . . . . . .
Special deductions (Schedule C, line 20) . . . . . . . . . . . . . . . . . . . 29b
. . . . . . .30,625
. . . . . . . . . . . . . . . . . .
Add lines 29a and 29b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29c
. . . . . . 30,625
. . . . . . .
Taxable income. Subtract line 29c from line 28 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
. . . . . 1,047,125
. . . . . . . . .
Total tax (Schedule J, Part I, line 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31. . . . . 356,023
. . . . . . . .
Total payments and refundable credits (Schedule J, Part II, line 21) . . . . . . . . . . . . . . . . . . . . .32. . . . . 360,000
. . . . . . . .

Sign
Here

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct,
and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Signature of officer

Print/Type preparer's name

Paid
Preparer
Use Only

Date

Title

Preparer's signature

Date

SELF-PREPARED RETURN
Firm's name

For Paperwork Reduction Act Notice, see separate instructions.

May the IRS discuss this return with

the preparer shown below (see
instructions)?
Yes
No
Check
if
self-employed

PTIN

Firm's EIN

Firm's address
City

HTA

(4)

. . . . . . 11-1111111
. . . . .
C Date incorporated
. . Before
. . . .1900,
. . see
. . Options tab.

1a
b
c
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29a
b
c
30
31
32

Dr
a

Deductions (See instructions for limitations on deductions.)

Income

OMB No. 1545-0123

U.S. Corporation Income Tax Return

Phone no.
State

ZIP code
Form

1120 (2013)

Form 1120 (2013)

Schedule C
1
2

Pet Kingdom, Inc.

11-1111111

Dividends and Special Deductions (see instructions)

(a) Dividends
received

Page

(c) Special deductions

(a) (b)

tf
a
(b) %

Dividends from less-than-20%-owned domestic corporations (other than

debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,750
. . . . . 70
. . . . . . . . . 30,625
.
Dividends from 20%-or-more-owned domestic corporations (other than
debt-financed stock) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80. . . . . . . . . .
0
see

Dividends on debt-financed stock of domestic and foreign corporations . . . . . . . . . . . . . . . . . .instructions

. . . . . . . . . . . . 0
. . . .

Dividends on certain preferred stock of less-than-20%-owned public utilities . . . . . . . . . . . . . . . . . 42

. . . . . . . . . . . .0. . .

Dividends on certain preferred stock of 20%-or-more-owned public utilities . . . . . . . . . . . . . . . . . . 48

. . . . . . . . . . . 0. . . .

Dividends from less-than-20%-owned foreign corporations and certain FSCs . . . . . . . . . . . . . . . . . 70

. . . . . . . . . . . 0
. . . .

Dividends from 20%-or-more-owned foreign corporations and certain FSCs . . . . . . . . . . . . . . . . . 80

. . . . . . . . . . . .0 . . .

Dividends from wholly owned foreign subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

. . . . . . . . . . . 0

9
10

r
D

Total. Add lines 1 through 8. See instructions for limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30,625

. . . . . .
Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958

. . . . . . . . . . . . . . . . . . .100
. . . . . . . . . . . 0
. . . .

11

Dividends from affiliated group members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

. . . . . . . . . . . .0 . . .

12

Dividends from certain FSCs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100

. . . . . . . . . . . 0

13

Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

Income from controlled foreign corporations under subpart F (attach Form(s) 5471) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15

Foreign dividend gross-up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

IC-DISC and former DISC dividends not included on lines 1, 2, or 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17

Other dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18

Deduction for dividends paid on certain preferred stock of public utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19

Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 . . . . . . . . . . . . 43,750
. . . . . . . . . . . . . . . . . . . . .

20

Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b . . . . . . . . . . . . . . . . . . 30,625
. . . . . . .
Form

1120 (2013)

Form 1120 (2013)

Schedule J

Pet Kingdom, Inc.

11-1111111

Page

Tax Computation and Payment (see instructions)

Part ITax Computation

Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)) . . . . . . . . . . . . . . . . . . . . . . . . . .

2
3
4
5a
b
c
d
e
6
7
8
9a
b
c

Income tax. Check if a qualified personal service corporation (see instructions) . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .2 . . . . 356,023
. . . . . . . . .
Alternative minimum tax (attach Form 4626) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . . . . . . . . . . .
Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 . . . . 356,023
. . . . . . . . .
Foreign tax credit (attach Form 1118) . . . . . . . . . . . . . . . . . . . . . . 5a
. . . . . . . . . . . . . . . . . . . . . . . . . .
Credit from Form 8834 (see instructions) . . . . . . . . . . . . .. . .. . . . .. . . . 5b
. . . . . . . . . . . . . . . . . . . . . . . . . .
General business credit (attach Form 3800) . . . . . . . . . . . . . . . . . . . . 5c
. . . . . . . . . . . . . . . . . . . . . . . . . .
Credit for prior year minimum tax (attach Form 8827) . . . . . . . . . . . . . . . . 5d
. . . . . . . . . . . . . . . . . . . . . . . . . .
Bond credits from Form 8912 . . . . . . . . . . . . . . . . . . . . . . . . . . 5e
. . . . . . . . . . . . . . . . . . . . . . . . . .
Total credits. Add lines 5a through 5e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . 0. . . . . .
Subtract line 6 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. . . . . 356,023
. . . . . . . . .
Personal holding company tax (attach Schedule PH (Form 1120)) . . . . . . . . . . . . . . . . . . . . . . . .8 . . . . . . . . . . . . .
Recapture of investment credit (attach Form 4255) . . . . . . . . . . . . . . . . . .9a. . . . . . . . . . . . . . . . . . . . . . . . .
Recapture of low-income housing credit (attach Form 8611) . . . . . . . . . . . . . . 9b
. . . . . . . . . . . . . . . . . . . . . . . . . .
Interest due under the look-back methodcompleted long-term contracts (attach
Form 8697) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9c
. . . . . . . . . . . . . . . . . . . . . . . . . .

Dr
af
t

d Interest due under the look-back methodincome forecast method (attach Form
8866) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9d
. . . . . . . . . . . . . . . . . . . . . . . . .
e Alternative tax on qualifying shipping activities (attach Form 8902) . . . . . . . . . . . 9e
. . . . . . . . . . . . . . . . . . . . . . . . . .
f Other (see instructionsattach statement) . . . . . . . . . . . . . . . . . . . . . 9f. . . . . . . . . . . . . . . . . . . . . . . . . .
10 Total. Add lines 9a through 9f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
. . . . . . . . 0. . .
11 Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. . . . . 356,023
. . . . . . . . .

Part IIPayments and Refundable Credits

12

2012 overpayment credited to 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12. . . . . . . . . . . . .

13

2013 estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

. . . . . . . . . . . . . .

14

2013 refund applied for on Form 4466 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14. .( . . . . . . . . ). . .

15

Combine lines 12, 13, and 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

. . . . . . . . 0. . . . . .

16

Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16. . . . . . . . . . . . .

17

Withholding (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

. . . . . 360,000
. . . . . . . . .

18

Total payments. Add lines 15, 16, and 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18. . . . .360,000

. . . . . . . .
Refundable credits from:
Form 2439 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a
. . . . . . . . . . . . . . . . . . . . . . . . . .
Form 4136 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. .. .. .. 19b
.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . .
Form 8827, line 8c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19c
. . . . . . . . . . . . . . . . . . . . . . . . . .
Other (attach statementsee instructions) . . . . . . . . . . . . . . . . . . . . 19d
. . . . . . . . . . . . . . . . . . . . . . . . . . .
Total credits. Add lines 19a through 19d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
. . . . . . . . 0. . . . .
Total payments and credits. Add lines 18 and 20. Enter here and on page 1, line 32 . . . . . . . . . . . . . . 21
. . . . . 360,000
. . . . . . . . .

19

20
21

Schedule K
1
2
a
b
c
3

Other Information (see instructions)

Yes No
X Accrual
Check accounting method:
a
Cash
b
c
Other (specify)
See the instructions and enter the:
Business activity code no.
453910
Business activity
Pet and supply store
Product or service
Selling pets and pet supplies
Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? . . . . . . . . . . . . . . . . . . . . . . . X. . . .

If "Yes," enter name and EIN of the parent corporation

EIN
Name

4 At the end of the tax year:

a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt
organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the
corporation's stock entitled to vote? If "Yes," complete Part I of Schedule G (Form 1120) (attach Schedule G) . . . . . . . . . . . . . . . . X
. . . .
b Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all
classes of the corporation's stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) . . . . . . . . X. . . . . .
Form

1120 (2013)

Form 1120 (2013)

Schedule K

Pet Kingdom, Inc.

11-1111111

Page

Other Information continued (see instructions)

Yes

No

5 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 voting power of all classes of stock entitled to vote of any
foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, see instructions . . . . . . X
. . . .
If "Yes," complete (i) through (iv) below.
(ii) Employer
Identification Number
(if any)

(iii) Country of
Incorporation

(iv) Percentage
Owned in Voting
Stock

Dr
af
t

(i) Name of Corporation

b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more 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 . . . . . . X. . . .
If "Yes," complete (i) through (iv) below.
(i) Name of Entity

(ii) Employer
Identification Number
(if any)

(iii) Country of
Organization

(iv) Maximum
Percentage Owned in
Profit, Loss, or Capital

During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in
excess of the corporation's current and accumulated earnings and profits? (See sections 301 and 316.) . . . . . . . . . . . . . . . . . . .X . . .
If "Yes," file Form 5452, Corporate Report of Nondividend Distributions.
If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary.

At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power of all
classes of the corporation's stock entitled to vote or (b) the total value of all classes of the corporation's stock? . . . . . . . . . . . . . . . .X . . . .
For rules of attribution, see section 318. If "Yes," enter:
(i) Percentage owned
and (ii) Owner's country
(c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign
Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached

9
10

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 Discount Instruments.
Enter the amount of tax-exempt interest received or accrued during the tax year
$
15,000
Enter the number of shareholders at the end of the tax year (if 100 or fewer)
2

11

If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here . . . . . . . . . . . . . . . . . . . . . .
If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or
the election will not be valid.

12
13

Enter the available NOL carryover from prior tax years (do not reduce it by any deduction on line 29a.)
$
Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end of the
tax year less than $250,000? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X. . . .
If "Yes," the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions
and the book value of property distributions (other than cash) made during the tax year.
$

14

Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement (see instructions)? . . . . . . . . . . . . . . X. . . .
If "Yes," complete and attach Schedule UTP.

15a Did the corporation make any payments in 2013 that would require it to file Form(s) 1099? . . . . . . . . . . . . . . . . . . . . . X
. . . . . . .
b If "Yes," did or will the corporation file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
. . . . . . .
16

During this tax year, did the corporation have an 80% or more change in ownership, including a change due to redemption of its

17

own stock? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X. . . .
During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value)

18

of its assets in a taxable, non-taxable, or tax deferred transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X. . . .

Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair
market value of more than $1 million? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .X . . .
Form

1120 (2013)

Form 1120 (2013)

Schedule L

Pet Kingdom, Inc.

Balance Sheets per Books

Assets

11-1111111
Beginning of tax year
(a)

(b)

Page

End of tax year

(c)

(d)

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000
. . . . . . . . . . . . . . . . . . 1,037,750
. . . . . . . . .
Trade notes and accounts receivable . . . . . . . . . . . . 2,062,500
. . . . . . . . . . . . . . . . . .2,147,000
. . . . . . . . . . . . . . . . .
Less allowance for bad debts . . . . . . . . . . . . ( . . . . . . . .) . . . . 2,062,500
. . . . . .( . . . . . . . ). . . . .2,147,000
. . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,750,000
. . . . . . . . . . . . . . . . . . 3,030,000
. . . . . . . . .
U.S. government obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax-exempt securities (see instructions) . . . . . . . . . . . . . . . . . . . . 375,000
. . . . . . . . . . . . . . . . . . 375,000
. . . . . . . .
Other current assets (attach statement) . . . . . . . . . . . . . . . . . . . . .400,000
. . . . . . . . . . . . . . . . . .403,977
. . . . . . .
Loans to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mortgage and real estate loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other investments (attach statement) . . . . . . . . . . . . . . . . . . . . .1,125,000
. . . . . . . . . . . . . . . . . .1,125,000
. . . . . . . .
Buildings and other depreciable assets . . . . . . . . . . . 5,455,000
. . . . . . . . . . . . . . . . . . 5,455,000
. . . . . . . . . . . . . . . . . .
Less accumulated depreciation . . . . . . . . . . . (. . . . 606,000)
. . . . . . . . 4,849,000
. . . . . . ( . . . . 712,000)
. . . . . . . . 4,743,000
. . . . . . . . .
Depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less accumulated depletion . . . . . . . . . . . . (. . . . . . . . ) . . . . . . . . 0. . (. . . . . . . .) . . . . . . . . 0. . . . .
Land (net of any amortization) . . . . . . . . . . . . . . . . . . . . . . . . 812,500
. . . . . . . . . . . . . . . . . . 812,500
. . . . . . . .
Intangible assets (amortizable only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less accumulated amortization . . . . . . . . . . . (. . . . . . . .) . . . . . . . . 0. . ( . . . . . . . .) . . . . . . . . 0. . . . .
Other assets (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . 140,000
. . . . . . . . . . . . . . . . . .128,500
. . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,714,000
. . . . . . . . . . . . . . . . . . 13,802,727
. . . . . . . . .

16
17
18
19
20
21
22

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,284,000

. . . . . . . . . . . . . . . . . . 1,975,000
. . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans from shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mortgages, notes, bonds payable in 1 year or more . . . . . . . . . . . . . . . 4,625,000
. . . . . . . . . . . . . . . . . . 4,575,000
. . . . . . . . .
Other liabilities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . 175,000
. . . . . . . . . . . . . . . . . . 155,000
. . . . . . . .
Capital stock: a Preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Common stock . . . . . . . . . . . . . 2,500,000
. . . . . . . . .2,500,000
. . . . . . . . .2,500,000
. . . . . . . . .2,500,000
. . . . . . . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earningsAppropriated (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earningsUnappropriated . . . . . . . . . . . . . . . . . . . . . 4,130,000
. . . . . . . . . . . . . . . . . . 4,597,727
. . . . . . . . .
Adjustments to shareholders' equity (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less cost of treasury stock . . . . . . . . . . . . . . . . . . . . . .( . . . . . . . ). . . . . . . . . . .( . . . . . . . ). . . .
Total liabilities and shareholders' equity . . . . . . . . . . . . . . . . . . . 13,714,000
. . . . . . . . . . . . . . . . . . 13,802,727
. . . . . . . . .

Dr
af
t

1
2a
b
3
4
5
6
7
8
9
10a
b
11a
b
12
13a
b
14
15

Liabilities and Shareholders' Equity

23
24
25
26
27
28

Schedule M-1

Reconciliation of Income (Loss) per Books With Income per Return

Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or moresee instructions

1
2
3
4

Net income (loss) per books . . . . . . . . . . . . . . . . . . . 7. . Income

. . . recorded
. . . . on
. books
. . . this
. .year
. .not. . . . . . . . . . . . . .
Federal income tax per books . . . . . . . . . . . . . . . . . . . . .included
. . . on
. this
. . return
. . .(itemize):
. . . . . . . . . . . . . . . . . . . .
Excess of capital losses over capital gains . . . . . . . . . . . . . . . .Tax-exempt
. . . . .interest
. . . . $. . . . . . . . . . . . . . . . . . . .
Income subject to tax not recorded on books
0
this year (itemize):
0 8 Deductions on this return not charged
5 Expenses recorded on books this year not
against book income this year (itemize):
deducted on this return (itemize):
a Depreciation . . . . $. . . . . . . . . . . . . . . . . . . .
a Depreciation . . . . . . . . $. . . . . . . . . . . . . . . . . . b . Charitable
. . . .contributions
. . . . . .$. . . . . . . . . . . . . . . . . . . .
b Charitable contributions . . . . $ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c Travel and entertainment . . . $. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0
0 9 Add lines 7 and 8 . . . . . . . . . . . . . . . . . . 0. . . . .
Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . .0 .10. .Income
. . . (page
. . 1,
. line
. . 28)line
. . . . 6.less
. .line
. 9. . . . . . . . .0 . . . .

Schedule M-2
1
2
3

Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L)

Balance at beginning of year . . . . . . . . . . . . . .4,130,000

. . . . . 5. . Distributions:
. . . . . . .a .Cash
. . .. .. .. .. .. .. .. .. .. .. .. ..250,000
.. .. .. .. .. .. ..
Net income (loss) per books . . . . . . . . . . . . . . .-768,023
. . . . . . . . . . . . . b. Stock
. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..
Other increases (itemize):
c Property . . . . . . . . . . . . . . . . . .
6 Other decreases (itemize):

0 7 Add lines 5 and 6 . . . . . . . . . . . . . . .250,000

. . . . . . .
Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . 3,361,977
. . . . . 8. . Balance
. . . .at .end
. of
. year
. . (line
. . 4. less
. . line
. 7)
. . . . . . 3,111,977
. . . . . . . .
Form

1120 (2013)

Form

1125-A

Cost of Goods Sold

(Rev. December 2012)

Department of the Treasury
Internal Revenue Service

OMB No. 1545-2225

Attach to Form 1120, 1120-C, 1120-F, 1120S, 1065, or 1065-B.

Information about Form 1125-A and its instructions is at www.irs.gov/form1125a.

Name

Employer identification number

Pet Kingdom, Inc.

11-1111111

Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 . . . . . . . 2,750,000

. . . . . . . . . . .
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . .
Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . . . . . . . . . . . . . . .
Additional section 263A costs (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . .4 . . . . . . . . . . . . . . . . . .
Other costs (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . .
Total. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . 2,750,000
. . . . . . . . . . .
Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. . . . . . . 3,030,000
. . . . . . . . . . .
Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2
or the appropriate line of your tax return (see instructions) . . . . . . . . . . . . . . . . . . . .8 . . . . . . . 2,300,000
. . . . . . . . . . .
9 a Check all methods used for valuing closing inventory:
1
2
3
4
5
6
7
8

(i)

Cost

(ii) X Lower of cost or market

(iii)

Other (Specify method used and attach explanation.)

b Check if there was a writedown of subnormal goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . . . . . . . . . . . . .
d If the LIFO inventory method was used for this tax year, enter amount of closing inventory
computed under LIFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9d. . . . . . . . . . . . . . . . . .
e If property is produced or acquired for resale, do the rules of section 263A apply to the entity (see instructions)? . . . . Yes
. . . . . . No
. . . . . .
f Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If
"Yes," attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes
. . . . .X . No
. . . . . .

For Paperwork Reduction Act Notice, see instructions.

HTA

Form 1125-A (Rev. 12-2012)

SCHEDULE G
(Form 1120)

Information on Certain Persons Owning the

Corporation's Voting Stock

(Rev. December 2011)

OMB No.1545-0123

Attach to Form 1120.

See instructions on page 2.

Department of the Treasury

Internal Revenue Service

Name

Employer identification number (EIN)

Pet Kingdom, Inc.

Part I

11-1111111

Certain Entities Owning the Corporation's Voting Stock. (Form 1120, Schedule K, Question 4a).
Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including
any entity treated as a partnership), trust, or tax-exempt organization that owns directly 20% or more, or
owns, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's
stock entitled to vote (see instructions).
(i) Name of Entity

Part II

(ii) Employer Identification

Number (if any)

(iii) Type of Entity

(iv) Country of Organization

(v) Percentage Owned in Voting Stock

Certain Individuals and Estates Owning the Corporation's Voting Stock. (Form 1120, Schedule K,
Question 4b). Complete columns (i) through (iv) below for any individual or estate that owns directly 20%
or more, or owns, directly or indirectly, 50% or more of the total voting power of all classes of the
corporation's stock entitled to vote (see instructions).
(i) Name of Individual or Estate

(ii) Identifying
Number (if any)

(iii) Country of
Citizenship (see
instructions)

(iv) Percentage Owned

in Voting Stock

Janet Morton

123-45-6789

United States

50.000%

Kim Wong

987-65-4321

United States

50.000%

For Paperwork Reduction Act Notice,

see the Instructions for Form 1120.
1833

Schedule G (Form 1120) (Rev. 12-2011)

SCHEDULE M-3
(Form 1120)

Net Income (Loss) Reconciliation for Corporations

With Total Assets of $10 Million or More

Department of the Treasury

Internal Revenue Service

Attach to Form 1120 or 1120-C.

Information about Schedule M-3 (Form 1120) and
its separate instructions is available at www.irs.gov/form1120 .

Name of corporation (common parent, if consolidated return)

Pet Kingdom, Inc.

Check applicable box(es):

Part I
1a

2a
b

3a

b
c
4a
b
5a
b
6a
b
7a
b
c
8
9
10a
b
c
11
12

a
b
c
d

Employer identification number

(1)

Non-consolidated return

(2)

11-1111111
Consolidated return (Form 1120 only)

(3)

Mixed 1120/L/PC group

(4)

Dormant subsidiaries schedule attached

Financial Information and Net Income (Loss) Reconciliation (see instructions)

Did the corporation file SEC Form 10-K for its income statement period ending with or within this tax year?
Yes. Skip lines 1b and 1c and complete lines 2a through 11 with respect to that SEC Form 10-K.
No. Go to line 1b. See instructions if multiple non-tax-basis income statements are prepared.
Did the corporation prepare a certified audited non-tax-basis income statement for that period?
Yes. Skip line 1c and complete lines 2a through 11 with respect to that income statement.
No. Go to line 1c.
Did the corporation prepare a non-tax-basis income statement for that period?
Yes. Complete lines 2a through 11 with respect to that income statement.
No. Skip lines 2a through 3c and enter the corporation's net income (loss) per its books and records on line 4a.
Enter the income statement period:
Beginning
Ending
Has the corporation's income statement been restated for the income statement period on line 2a?
Yes. (If "Yes," attach an explanation and the amount of each item restated.)

No.
Has the corporation's income statement been restated for any of the five income statement periods preceding the period on line 2a?
Yes. (If "Yes," attach an explanation and the amount of each item restated.)
No.
Is any of the corporation's voting common stock publicly traded?
Yes.
No. If "No," go to line 4a.
Enter the symbol of the corporation's primary U.S. publicly traded voting common
stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the nine-digit CUSIP number of the corporation's primary publicly traded voting
common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Worldwide consolidated net income (loss) from income statement source identified in Part I, line 1 . . . . . .4a. . . . . . . . . . .
Indicate accounting standard used for line 4a (see instructions):
(1)
GAAP (2)
IFRS (3)
Statutory (4)
Tax-basis
(5)
Other (specify)
Net income from nonincludible foreign entities (attach statement) . . . . . . . . . . . . . . . . . . .5a. . (. . . . . . .) . .
Net loss from nonincludible foreign entities (attach statement and enter as a positive amount) . . . . . . . 5b
. . . . . . . . . . . .
Net income from nonincludible U.S. entities (attach statement) . . . . . . . . . . . . . . . . . . . .6a. . (. . . . . . .) . .
Net loss from nonincludible U.S. entities (attach statement and enter as a positive amount) . . . . . . . . 6b
. . . . . . . . . . . .
Net income (loss) of other includible foreign disregarded entities (attach statement) . . . . . . . . . . . .7a. . . . . . . . . . .
Net income (loss) of other includible U.S. disregarded entities (attach statement) . . . . . . . . . . . . .7b. . . . . . . . . . .
Net income (loss) of other includible entities (attach statement) . . . . . . . . . . . . . . . . . . . .7c. . . . . . . . . . .
Adjustment to eliminations of transactions between includible entities and nonincludible entities (attach
statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. . . . . . . . . . . .
Adjustment to reconcile income statement period to tax year (attach statement) . . . . . . . . . . . . . 9. . . . . . . . . . . .
Intercompany dividend adjustments to reconcile to line 11 (attach statement) . . . . . . . . . . . . . . 10a
. . . . . . . . . . . .
Other statutory accounting adjustments to reconcile to line 11 (attach statement) . . . . . . . . . . . . 10b
. . . . . . . . . . . .
Other adjustments to reconcile to amount on line 11 (attach statement) . . . . . . . . . . . . . . . . 10c
. . . . . . . . . . . .
Net income (loss) per income statement of includible corporations. Combine lines 4 through 10 . . . . 11
. . . . . . . . .0 . . .
Note. Part I, line 11, must equal the amount on Part II, line 30, column (a), and Schedule M-2, line 2.
Enter the total amount (not just the corporation's share) of the assets and liabilities of all entities included or removed on the
following lines.
Total Assets
Total Liabilities
Included on Part I, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Removed on Part I, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Removed on Part I, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Included on Part I, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see the Instructions for Form 1120.
HTA

OMB No. 1545-0123

Schedule M-3 (Form 1120) 2013

Schedule M-3 (Form 1120) 2013

Page

Name of corporation (common parent, if consolidated return)

Pet Kingdom, Inc.

Check applicable box(es):
Check if a sub-consolidated:

11-1111111
(1)

Consolidated group
(6)

1120 group

Name of subsidiary (if consolidated return)

Part II

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23a

b
c

e
f
g
24
25
26
27
28
29a
b
c
30

Employer identification number

(2)
(7)

Parent corp

(3)

Consolidated eliminations

(4)

Subsidiary corp

(5)

Mixed 1120/L/PC group

1120 eliminations

Employer identification number

Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With
Taxable Income per Return (see instructions)
(a)
(b)
(c)
Income (Loss) Items
Income (Loss) per
Temporary
Permanent

(d)
Income (Loss)
per Tax Return

(Attach statements for lines 1 through 11)

Income Statement
Difference
Difference
Income (loss) from equity method foreign corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross foreign dividends not previously taxed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subpart F, QEF, and similar income inclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 78 gross-up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross foreign distributions previously taxed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (loss) from equity method U.S. corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. dividends not eliminated in tax consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minority interest for includible corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (loss) from U.S. partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (loss) from foreign partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (loss) from other pass-through entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Items relating to reportable transactions (attach
statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income (attach Form 8916-A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total accrual to cash adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hedging transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mark-to-market income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of goods sold (attach Form 8916-A). . . . . . . . .( . . . . . . ) . . . . . . . . . . . . . . . ( . . . . . . ) . . .
Sale versus lease (for sellers and/or lessors) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 481(a) adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unearned/deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income recognition from long-term contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Original issue discount and other imputed interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income statement gain/loss on sale, exchange,
abandonment, worthlessness, or other disposition of
assets other than inventory and pass-through entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross capital gains from Schedule D, excluding
amounts from pass-through entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross capital losses from Schedule D, excluding
amounts from pass-through entities, abandonment
losses, and worthless stock losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net gain/loss reported on Form 4797, line 17,
excluding amounts from pass-through entities,
abandonment losses, and worthless stock losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Abandonment losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Worthless stock losses (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other gain/loss on disposition of assets other than inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital loss limitation and carryforward used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (loss) items with differences (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total income (loss) items. Combine lines 1 through 25 . . . . . . . . . . 0
. . . . . . . .0 . . . . . . .0 . . . . . . .0 . . . .
Total expense/deduction items (from Part III, line 38) . . . . . ( . . .768,023)
. . . . . . . . . . . . . . . . . . (. . . 412,000)
. . . . . . .
Other items with no differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mixed groups, see instructions. All others, combine
lines 26 through 28 . . . . . . . . . . . . . . . . . ( . . . 768,023)
. . . . . . . . . . 0 . . . . . . . 0 . (. . . 412,000)
. . . . . . .
PC insurance subgroup reconciliation totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Life insurance subgroup reconciliation totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reconciliation totals. Combine lines 29a through 29c . . .( . . .768,023)
. . . . . . . . . 0. . . . . . . 0
. . ( . . . 412,000)
. . . . . .
Note. Line 30, column (a), must equal the amount on Part I, line 11, and column (d) must equal Form 1120, page 1, line 28.
Schedule M-3 (Form 1120) 2013

Schedule M-3 (Form 1120) 2013

Page

Name of corporation (common parent, if consolidated return)

Pet Kingdom, Inc.

Check applicable box(es):

11-1111111
(1)

Check if a sub-consolidated:

Consolidated group
(6)

1120 group

(2)
(7)

Parent corp

(3)

Consolidated eliminations

(4)

6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

(5)

Mixed 1120/L/PC group

Employer identification number

Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With Taxable
Income per ReturnExpense/Deduction Items (see instructions)
Expense/Deduction Items

1
2
3
4
5

Subsidiary corp

1120 eliminations

Name of subsidiary (if consolidated return)

Part III

Employer identification number

(a)
Expense per
Income Statement

(b)
Temporary
Difference

(c)
Permanent
Difference

(d)
Deduction per
Tax Return

U.S. current income tax expense . . . . . . . . . . . . . . .356,023

. . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. deferred income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State and local current income tax expense . . . . . . . . . . 238,000
. . . . . . . . . . . . . . . . . . . . . .238,000
. . . . . .
State and local deferred income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign current income tax expense (other than
foreign withholding taxes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign deferred income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign withholding taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense (attach Form 8916-A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock option expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other equity-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Meals and entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fines and penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Judgments, damages, awards, and similar costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Parachute payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Compensation with section 162(m) limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension and profit-sharing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other post-retirement benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Charitable contribution of cash and tangible
property . . . . . . . . . . . . . . . . . . . . . . . . . 38,000
. . . . . . . . . . . . . . . . . . . . . 38,000
. . . . . .
Charitable contribution of intangible property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Charitable contribution limitation/carryforward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Domestic production activities deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current year acquisition or reorganization
investment banking fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current year acquisition or reorganization legal and
accounting fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current year acquisition/reorganization other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization/impairment of goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of acquisition, reorganization, and
start-up costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other amortization or impairment write-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation . . . . . . . . . . . . . . . . . . . . . . .136,000
. . . . . . . . . . . . . . . . . . . . . 136,000
. . . . . . .
Bad debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate owned life insurance premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase versus lease (for purchasers and/or
lessees) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research and development costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 118 exclusion (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expense/deduction items with differences
(attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total expense/deduction items. Combine lines 1
through 37. Enter here and on Part II, line 27,
reporting positive amounts as negative and
negative amounts as positive . . . . . . . . . . . . . . . . 768,023
. . . . . . . . . . 0 . . . . . . . 0 . . . . 412,000
. . . . . . .
Schedule M-3 (Form 1120) 2013

Form

1125-E

Compensation of Officers

(Rev. December 2013)

Department of the Treasury
Internal Revenue Service

OMB No. 1545-2225

Attach to Form 1120, 1120-C, 1120-F, 1120-REIT, 1120-RIC, or 1120S

Information about Form 1125-E and its separate instructions is at www.irs.gov/form1125e.

Name

Employer identification number

Pet Kingdom, Inc.

11-1111111

Note. Complete Form 1125-E only if total receipts are $500,000 or more. See instructions for definition of total receipts.
(a) Name of officer

Janet Morton

Kim Wong

(b) Social security number

(c) Percent of
time devoted to
business

Percent of stock owned

(d) Common

(e) Preferred

(f) Amount of
compensation

123-45-6789

50.00%

262,500

987-65-4321

50.00%

262,500

Total compensation of officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . 525,000

. . . . . . .

Compensation of officers claimed on Form 1125-A or elsewhere on return . . . . . . . . . . . 3 . . . . . . . . . . . . . .

Subtract line 3 from line 2. Enter the result here and on Form 1120, page 1, line 12 or the
appropriate line of your tax return . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . .525,000
. . . . . . .

For Paperwork Reduction Act Notice, see separate instructions.

HTA

Form 1125-E (Rev. 12-2013)

Pet Kingdom, Inc.

11-1111111

Line 6, Sch L (1120) - Other Current Assets

Beginning
End
1 certificates of deposit
1
400,000
400,000
2 prepaid federal tax
2
0
3,977
3 Total other current assets . . . . . . . . . . . . . . . . . . . . . . . . .3 . . . . 400,000
. . . . . . . . 403,977
. . . . . . . .

Line 9, Sch L (1120) - Other Investments

Beginning
End
1 Stock Investments
1
1,125,000
1,125,000
2 Total other investments . . . . . . . . . . . . . . . . . . . . . . . . . 2
. . . . 1,125,000
. . . . . . . . 1,125,000
. . . . . . . . .

Line 14, Sch L (1120) - Other Assets

Beginning
End
1 Other Assets
1
140,000
128,500
2 Total other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 . . . . 140,000
. . . . . . . . 128,500
. . . . . . . .

Line 21, Sch L (1120) - Other Liabilities

Beginning
End
1 Other current Liabilities
1
175,000
155,000
2 Total other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . 175,000
. . . . . . . . 155,000
. . . . . . . . .

2013 CCH Small Firm Services. All rights reserved.

Pet Kingdom, Inc.

11-1111111

Line 5 (1120) - Interest Income

1 U.S. Treasury Bills and Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . . . .20,000
. . . . . . .
2 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . 20,000
. .

Line 13 (1120) - Salaries and Wages

1 Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 . . . . 725,000
. . . . . . . . . . . . . . . .
2 Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . . . . . . . . . . . . . . . . . . . .
3
3
4 Total salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . 725,000
. . . . . . . . .
Salaries and wages reported elsewhere on return:
5 Amounts included in Cost of Goods Sold . . . . . . . . . . . . . . . . . . . 5. . . . . . . 0. . . . . . . . . . . . . .
6 Elective contributions to a section 401(k) cash or deferred
arrangement, or amounts contributed under a salary reductions SEP
agreement or a SIMPLE IRA plan . . . . . . . . . . . . . . . . . . . . . . 6. . . . . . . . . . . . . . . . . . . . .
7 Total salaries and wages reported elsewhere on return . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . 0 . . . . .
Less employment credits:
8 From Form 5884 - Work Opportunity Credit . . . . . . . . . . . . . . . . . .8 . . . . . . .0 . . . . . . . . . . . . .
9 From Form 8844 - Empowerment Zone Employment Credit . . . . . . . . . . . 9. . . . . . . 0. . . . . . . . . . . . . .
10 From Form 8845 - Indian Employment Credit . . . . . . . . . . . . . . . . .10. . . . . . . 0. . . . . . . . . . . . . .
11
11
12
12
13 Total employment credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. . . . . . . 0. . . . . .
14 Reduction of expenses for other offsetting credits (see attached statement) . . . . . . . . . . . . . 14
. . . . . . . 0. . . . . .
15 Total salaries and wages less employment credits and expense reductions . . . . . . . . . . . . . 15
. . . . . 725,000
. . . . . . . .

Line 17 (1120) - Taxes and Licenses

1 State income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. . . . .238,000
. . . . . . . .
2 Sub Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 . . . . 238,000
. . . . . . . .
3 Total taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . .238,000
. . . . . . . .

Line 18 (1120) - Interest Expense

1 business loans
1
207,000
2 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 . . . . 207,000
. . . . . . . .

Pet Kingdom, Inc.

11-1111111

Line 19 (1120) - Charitable Contributions

(A)

Amount
1
a
b
2
a
b
c
d
e
3
4
5

(B)
Adjustment
under Section
170(d)(2)(B)

(C)
Deduction
Allowed in
Current Year

(D)
Contribution
Carryover

Contribution for current year:

Direct contribution . . . . . . 38,000
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
From partnerships . . . . . . . . 0. 1. . . . . . . 38,000
. . . . . . . . . . 0. . . . . . 38,000
. . . . . . . . . . .0 . . . . .
Carryover from:
5th preceding period . . . . . . . . 2a
. . . . . . . . . . . . . . . . . . . . . . . . . .0 . . . . . . . . 0 . . . . .
4th preceding period . . . . . . . . 2b
. . . . . . . . . . . . . . . . . . . . . . . . . .0 . . . . . . . . 0 . . . . .
3rd preceding period . . . . . . . . 2c
. . . . . . . . . . . . . . . . . . . . . . . . . .0 . . . . . . . . 0 . . . . .
2nd preceding period . . . . . . . . 2d
. . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . . . . .0 . . . . .
1st preceding period . . . . . . . . 2e
. . . . . . . . . . . . . . . . . . . . . . . . . .0 . . . . . . . . 0 . . . . .
Totals . . . . . . . . . . . . . . 3. . . . . . .38,000
. . . . . . . . . . 0. . . . . . 38,000
. . . . . . . . . . .0 . . . . .
Carryover to expire next year due to 5 year limitation . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . 0. . . . . .
Total contribution carryover to next year . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. . . . . . . 0. . . . . .

Computation of Section 179 Deduction for Estimated Charitable Contribution

6
7
8
9
10

Taxable Income computed without contribution deduction or Section 179 . . . . . . . . . . . . . . 6. . . . 1,251,750

. . . . . . . . .
Section 179 deduction for purposes of contribution limitation . . . . . . . . . . . . . . . . . . . 7. . . . . . . 0. . . . . .
Taxable income less Section 179 deduction. Subtract line 7 from line 6 . . . . . . . . . . . . . . . 8. . . . 1,251,750
. . . . . . . . .
Maximum contribution limitation. Enter 10% of line 8 . . . . . . . . . . . . . . . . . . . . . . .9 . . . . 125,175
. . . . . . . .
Contribution deduction considering Section 179 limitation.
Smaller of line 3, col A minus lines 2a through 2e, col B or line 9 . . . . . . . . . . . . . . . . . . 10. . . . . 38,000
. . . . . . . .

Computation of Actual Charitable Contribution

11
12
13
14
15
16

Actual Section 179 deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

. . . . . . . 0
. . . . . .
Taxable income less actual Section 179 deduction. Subtract line 11 from line 6 . . . . . . . . . . . . 12. . . .1,251,750
. . . . . . . . .
Net operating loss deductions limited by line 12 . . . . . . . . . . . . . . . . . . . . . . . . .13. . . . . . . 0 . . . . .
Taxable income for purposes of contribution deduction. Subtract line 13 from line 12 . . . . . . . . . .14. . . 1,251,750
. . . . . . . . .
Maximum contribution limitation. Enter 10% of line 14 . . . . . . . . . . . . . . . . . . . . . . 15. . . . 125,175
. . . . . . . . .
Actual contribution deduction. Smaller of line 3, col A minus lines 2a through 2e, col B or line 15 . . . . . 16
. . . . . 38,000
. . . . . . . .

Computation of Qualified Conservation Property Contributions by Farmers and Ranchers

17 Carryover of 100% contribution from 2012 . . . . . . . . . . . . . . . . . . . .
18 Enter the amount of qualified conservation property contributions
Do not include any amount entered in line 1(A) above
Direct contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
From partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19 Net 100% contribution available for current year . . . . . . . . . . . . . . . . . .
20 Taxable income for purposes of 100% contribution deduction. Subtract line 16 from line 14 .
21 100% contribution deduction for current year. Enter the smaller of line 19 or line 20 . . . .
22 Carryover of 100% contribution to 2014. Subtract line 20 from line 19 . . . . . . . . .

. . . . . . .17. . . . . . . . . . . .

.
.
.
.
.
.

.
.
.
.
.
.

.
.
.
.
.
.

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. 0.
. .
. .
. .
. .

.
.
.
.
.
.

. .
.18.
19
. .
20
. .
21
. .
22
. .

.
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.
.
.
.

.
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.
.
.

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.

.
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.

.
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.

. .
.0 .
.0 .
0
. .
.0 .
.0 .

.
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.

.
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.
.
.
.

.
.
.
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.
.
.

Part I - Contribution carryover, NOL carryover, and Taxable income without contribution deduction
1 2013 taxable income without contributions deduction . . . . . . . . . . . . . . . . . . . . . . .1 . . . 1,251,750
. . . . . . . . .
2 Contribution deduction available in 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 . . . . 38,000
. . . . . . . .
3 Prior year NOL carryover to 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . . . . 0. . . . . .

Part II - Determination of 2013 contributions converted to NOL under Section 170(d)(2)(B)

1
2
3
4

Taxable Income computed without contribution deduction . . . . . . . . . . . . . . . . . . . . . 1 . . . . . . . 0 . . . . .

Net operating loss deductions. (NOL cannot exceed Part II, line 1) . . . . . . . . . . . . . . . . . 2. . . . . . . 0. . . . . .
Taxable income for purposes of contribution deduction. Subtract line 2 from line 1 . . . . . . . . . . . 3. . . . . . . 0. . . . . .
Maximum contribution (10% of line 1 when NOL is not applied to taxable income computed without
contribution deductions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . . . . 0. . . . . .
5 Actual contribution deduction allowed. Enter line 16 above . . . . . . . . . . . . . . . . . . . . 5. . . . . . . 0. . . . . .
6 Current year's Section 170(d)(2)(B) contribution deduction converted to NOL. Subtract line 5 from line 4
but do not enter more than the current year contribution less the actual contribution deduction . . . . . . 6
. . . . . . . .0 . . . . .

Part III - Determination of 2013 contribution carryover to next year under Section 170(d)(2)(B)
1
2
3
4
5

Contribution deduction available in 2013. Enter Part I, line 2 above . . . . . . . . . . . . . . . . . 1. . . . . 38,000

. . . . . . . .
Contribution deducted for the tax year ending 2013. Enter line 16 above . . . . . . . . . . . . . . . 2. . . . . 38,000
. . . . . . . .
Current year's Section 170(d)(2)(B) contribution deduction converted to NOL. Enter Part II, line 6 above . . .3 . . . . . . .0 . . . . .
Carryover to expire next year due to 5 year limitation. Enter Column D, line 4 above . . . . . . . . . . 4. . . . . . . 0
. . . . . .
Total contribution carryover to next year. Subtract lines 2, 3, and 4 from line 1 . . . . . . . . . . . . . 5 . . . . . . . 0 . . . . .

Pet Kingdom, Inc.

11-1111111

Line 20 (1120) - Depreciation

1 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 . . . . 136,000
. . . . . . . .
2 Depreciation claimed on Schedule A or elsewhere on return . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . 0 . . . . .
3 Depreciation not claimed elsewhere on return . . . . . . . . . . . . . . . . . . . . . . . . . 3
. . . . .136,000
. . . . . . . .

Line 24 (1120) - Employee Benefit Programs

1 Employee Benefit Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. . . . . 60,000
. . . . . . . .
2 Less: Credit for Small Employer Health Insurance Premiums . . . . . . . . . . . . . . . . . . . .2 . . . . . . .0 . . . . .
3 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 . . . . 60,000
. . . . . . . .

Line 9, Sch C (1120) - Dividends-Received Deduction after Limitation

1a Amount from line 28, page 1, Form 1120, without any domestic production
activities deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a
. . . . 1,077,750
. . . . . . . . . . . . . . . . .
b Adjustment under section 1059 . . . . . . . . . . . . . . . . . . . . . . 1b
. . . . . . . . . . . . . . . . . . . . .
c Capital loss carryback to the tax year under section 1212(a)(1) . . . . . . . . . .1c. . . . . . . . . . . . . . . . . . . . .
d Refigured line 28, page 1, Form 1120 amount. Combine lines 1a through 1c . . . . . . . . . . . . 1d
. . . . 1,077,750
. . . . . . . . .
2 Complete Schedule C, lines 10 through 12, column (c), and enter the total here . . . . . . . . . . . . 2. . . . . . . 0. . . . . .
3 Subtract line 2 from line 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . . . 1,077,750
. . . . . . . . .
4 Multiply line 3 by 80% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. . . . .862,200
. . . . . . . .
5a Add Schedule C, lines 2, 5, 7, and 8, column (c) . . . . . . . . . . . . . . . .5a. . . . . . . 0 . . . . . . . . . . . . . .
b Enter the part of the deduction on Schedule C, line 3, column (c), that is attributable to
dividends from 20%-or-more-owned corporations . . . . . . . . . . . . . . . 5b
. . . . . . . . . . . . . . . . . . . . .
c Add line 5a and line 5b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5c. . . . . . . 0 . . . . .
6 Enter the smaller of line 4 or 5c. If line 5c is greater than line 4, stop here; enter the amount
from line 6 on line 9, column (c), and do not complete the rest of this worksheet . . . . . . . . . . . .6 . . . . . . .0 . . . . .
7a Enter the total amount of dividends from 20%-or-more-owned corporations that are included
on Schedule C, lines 2, 5, 7, and 8, column (a) . . . . . . . . . . . . . . . . 7a
. . . . . . . 0. . . . . . . . . . . . . .
b Enter the portion of dividends from 20%-or-more-owned corporations included on
Schedule C, line 3, column (a) . . . . . . . . . . . . . . . . . . . . . . .7b. . . . . . . . . . . . . . . . . . . . .
c Add line 7a and line 7b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7c. . . . . . . 0 . . . . .
8 Subtract line 7c from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. . . . 1,077,750
. . . . . . . . .
9 Multiply line 8 by 70% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. . . . 754,425
. . . . . . . . .
10 Subtract line 5c from the total of Schedule C, lines 1 through 8, column (c) . . . . . . . . . . . . . 10
. . . . . 30,625
. . . . . . . .
11 Enter the smaller of line 9 or line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11. . . . .30,625
. . . . . . .
12 Dividends-received deduction after limitation (sec. 246(b)). Add lines 6 and 11. Enter the
result here and on Schedule C, line 9, column (c) . . . . . . . . . . . . . . . . . . . . . . . 12
. . . . . 30,625
. . . . . . . .

Pet Kingdom, Inc.

11-1111111

Line 3, Sch J (1120) - Small Corporation Exempt from AMT Determination

Complete this worksheet to determine if the corporation qualifies as a small corporation exempt from the
alternative minimum tax.
Yes

No
X Is this tax year the corporation's first year in existence?
If "Yes", Stop here.
The corporation is exempt from AMT with no other qualification requirements.
Did the corporation lose small corporation status in a prior year? If so, enter the change date:
If "Yes", Stop here.
Once a corporation loses its small corporation status, it cannot qualify in any subsequent tax year.

Tax Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
Yes
or
N/A

Annualized
Gross Receipts

5,613,750

Prior Three
Year Average
0
0
0
0
0
0
0
0
0

Enter Gross Receipts for 2005.

Enter Gross Receipts for 2006.
Enter Gross Receipts for 2007.
Enter Gross Receipts for 2008.
Enter Gross Receipts for 2009.
Enter Gross Receipts for 2010.
Enter Gross Receipts for 2011.
Enter Gross Receipts for 2012.

No
Did the corporation have average annual gross receipts of $5 million or less for the FIRST
three-year period beginning after 1993 (for calendar year corps in existence on 1/1/1994
through 1996)?
Were the corporation's average gross receipts for EVERY three-year period beginning after
1994 and ending before its tax year beginning in 2013 $7.5 million or less? (For calendar
year corporations in existence on 1/1/1994, the three year periods are: 1995-1997, 1996-1998,
1997-1999, 1998-2000, 1999-2001, 2000-2002, 2001-2003, 2002-2004, 2003-2005, 2004-2006, 2005-2007,
2006-2008, 2007-2009, 2008-2010, 2009-2011, 2010-2012).
If the corporation had only one prior tax year, were the gross receipts for the prior tax
year $5 million or less, (or the corporation was established before 1994)?

Pet Kingdom, Inc.

11-1111111

Schedule L (1120) - Balance Sheets per Books

1
2a
2b
2c
3
4
5
6
7
8
9
10a
10b
10c
11a
11b
11c
12
13a
13b
13c
14
15

Assets
Beginning
Ending
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. . . .1,200,000
. . . . . . . .1,037,750
. . . . . . . . .
Trade notes and accounts receivable . . . . . . . . . . . . . . . . . . . 2a
. . . . 2,062,500
. . . . . . . . 2,147,000
. . . . . . . . .
Less allowance for bad debts . . . . . . . . . . . . . . . . . . . . . . 2b
. . . . . . . . . . . . . . . . . . . . .
Net trade notes and accounts receivable . . . . . . . . . . . . . . . . . . 2c
. . . . 2,062,500
. . . . . . . . 2,147,000
. . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 . . . 2,750,000
. . . . . . . . 3,030,000
. . . . . . . . . .
U.S. government obligations . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . .
Tax-exempt securities . . . . . . . . . . . . . . . . . . . . . . . . . 5. . . . .375,000
. . . . . . . .375,000
. . . . . . . .
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . 6. . . . 400,000
. . . . . . . . 403,977
. . . . . . . . .
Loans to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . .7 . . . . . . . . . . . . . . . . . . . . .
Mortgage and real estate loans . . . . . . . . . . . . . . . . . . . . . .8 . . . . . . . . . . . . . . . . . . . . .
Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 . . . 1,125,000
. . . . . . . . 1,125,000
. . . . . . . . . .
Buildings and other depreciable assets . . . . . . . . . . . . . . . . . . 10a
. . . . 5,455,000
. . . . . . . . 5,455,000
. . . . . . . . . .
Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . 10b
. . . . . 606,000
. . . . . . . . 712,000
. . . . . . . . .
Net buildings and other depreciable assets . . . . . . . . . . . . . . . . .10c
. . . .4,849,000
. . . . . . . . 4,743,000
. . . . . . . . .
Depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . . 11a
. . . . . . . . . . . . . . . . . . . . . .
Less accumulated depletion . . . . . . . . . . . . . . . . . . . . . . 11b
. . . . . . . . . . . . . . . . . . . . . .
Net depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . 11c
. . . . . . . .0 . . . . . . . .0 . . . . .
Land (net of any amortization) . . . . . . . . . . . . . . . . . . . . . . 12
. . . . 812,500
. . . . . . . . .812,500
. . . . . . . .
Intangible assets (amortizable only) . . . . . . . . . . . . . . . . . . . .13a
. . . . . . . 0. . . . . . . . 0. . . . . .
Less accumulated amortization . . . . . . . . . . . . . . . . . . . . . 13b
. . . . . . . .0 . . . . . . . . 0 . . . . . .
Net intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . 13c
. . . . . . . . 0 . . . . . . . . 0. . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. . . . 140,000
. . . . . . . . 128,500
. . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
. . . 13,714,000
. . . . . . . . 13,802,727
. . . . . . . . . .

16
17
18
19
20
21
22a
22b
22c
23
24
25
26
27
28

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. . . .2,284,000

. . . . . . . .1,975,000
. . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year . . . . . . . . . . . . . .17. . . . . . . . . . . . . . . . . . . . .
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 18
. . . . . . . 0. . . . . . . . 0. . . . . .
Loans from shareholders . . . . . . . . . . . . . . . . . . . . . . . . 19
. . . . . . . . . . . . . . . . . . . . .
Mortgages, notes, bonds payable in 1 year or more . . . . . . . . . . . . . . 20
. . . . 4,625,000
. . . . . . . . 4,575,000
. . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
. . . . .175,000
. . . . . . . .155,000
. . . . . . . .
Capital stock (preferred) . . . . . . . . . . . . . . . . . . . . . . . . 22a
. . . . . . . . . . . . . . . . . . . . .
Capital stock (common) . . . . . . . . . . . . . . . . . . . . . . . . 22b
. . . . 2,500,000
. . . . . . . . 2,500,000
. . . . . . . . . .
Net Capital Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 22c
. . . . 2,500,000
. . . . . . . . 2,500,000
. . . . . . . . . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . 23
. . . . . . . . . . . . . . . . . . . . .
Retained earnings - appropriated . . . . . . . . . . . . . . . . . . . . .24. . . . . . . 0. . . . . . . . 0. . . . . .
Retained earnings - unappropriated . . . . . . . . . . . . . . . . . . . .25. . . .4,130,000
. . . . . . . .4,597,727
. . . . . . . . .
Adjustments to shareholders' equity . . . . . . . . . . . . . . . . . . . .26. . . . . . . 0. . . . . . . . 0. . . . . .
Less cost of treasury stock . . . . . . . . . . . . . . . . . . . . . . . 27
. . . . . . . . . . . . . . . . . . . . .
Total liabilities and shareholders' equity . . . . . . . . . . . . . . . . . . 28
. . . .13,714,000
. . . . . . . .13,802,727
. . . . . . . . .

Liabilities and Capital

End of year balance sheet out of balance by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. . . . . .