ACC - Janet Morton and Kim Wong formed Pet Kingdom, Inc.

*Pet Kingdom's business address is 1010 Northwest Parkway, Dallas, TX 75225; its telephone number is (214)555-2211; and its email address is p..m@pki.com.*The employer identification number is 11-111111, and the principal business activity code is 453910.*Janet and Kim each own 50% of the common stock; Janet is president and Kim is vice president of the company. No other class of stock is authorized.*Both Janet and Kim are full-time employees of Pet Kingdom. Janet's Social Security number is 123-45-6789, and Kim's social security number is 987-65-4321.*Pet kingdom is an accrual method, calendar year taxpayer. Inventories are determined using FIFO and the lower of cost or market method. Pet Kingdom uses the straight-line method of depreciation for book purposes and accelerated depreciation (MACRS) for tax purposes.*During 2013, the corporation distributed cash dividends of $250,000.Pet Kingdom's financial statements for 2013 follow.