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On February 12, 2005, Nancy Trout and Delores Lake formedKingfisher Corporation to sell fishing tackle. Pertinentinformation regarding Kingfisher is summarized as follows.Kingfisher's business address is 1717 Main Street, Ely, MN 55731;its telephone number is (218) 555-2211; and its e-mail address is[email protected]. The employer identification number is11-1111111, and the principal business activity code is 451110.Nancy owns 50% of the common stock and is president of the company,and Delores owns 50% of the common stock and is vice president ofthe company. No other class of stock is authorized. Both Nancy andDelores are full-time employees of Kingfisher. Nancy's SocialSecurity number is 123-45-6789, and Delores's Social Securitynumber is 987-65-4321. Kingfisher is an accrual method, calendaryear taxpayer. Inventories are determined using FIFO and the lowerof cost or market method. Kingfisher uses the straight-line methodof deprecation for book purposes and accelerated depreciation(MACRS) for tax purposes. During 2018, the corporation distributedcash dividends of $80,000. Kingfisher's financial statements for2018 are shown below.

Income Statement Income Gross sales $2,408,000 Sales returns and allowances (80,000) Net sales $2,328,000 Cost of goods sold (920,000) Gross profit $1,408,000 Dividends received from stock investments in       less-than-20%-owned U.S.corporations 12,000 Interest income:     State bonds $  14,000     Certificates of deposit 10,000 24,000 Total income $1,444,000 Expenses Salaries—officers     Nancy Trout $160,000     Delores Lake 160,000 $320,000 Salaries—clerical and sales 290,000 Taxes (state, local, and payroll) 85,000 Repairs and maintenance 56,000 Interest expense:     Business loans $  12,000     Loan to purchase state bonds 8,000 20,000 Advertising 6,000 Rental expense 68,000 Depreciation* 40,000 Charitable contributions 15,000 Employee benefit programs 24,000 Premiums on term life insurance policies on lives of NancyTrout and       Delores Lake; Kingfisher is thedesignated beneficiary 16,000 Total expenses (940,000) Net income before taxes $  504,000 Federal income tax (106,680) Net income per books $397,320

*The depreciation expense for taxes is the sames as thedepreciation expense per the books.

Balance Sheet Assets January 1, 2018 December 31, 2018 Cash $  380,000     $  337,300       Trade notes and accounts receivable 308,400     480,280       Inventories 900,000     1,012,000       State bonds 160,000     160,000       Federal income tax refund -0-     1,320       Certificates of deposit 140,000     140,000       Stock investments 300,000     300,000       Building and other depreciable assets 240,000     240,000       Accumulated depreciation (88,800)    (128,800)      Land 20,000     20,000       Other assets 3,600     2,000           Total assets $2,363,200     $2,564,100       Liabilities and Equity January 1, 2018 December 31, 2018 Accounts payable $  300,000     $  223,880       Other current liabilities 80,300     40,000       Mortgages 210,000     200,000       Capital stock 500,000     500,000       Retained earnings 1,272,900     1,590,220           Total liabilities and equity $2,363,200     $2,564,100

During 2018, Kingfisher made estimated tax payments of $27,000each quarter to the IRS.

Determine Kingfisher's income tax liability for tax year 2018providing the following information that would be reported on Form1120 and supporting schedules.