Premium, Inc. 2018 Tax Return - RRoss

RAYCHAEL ROSS, CPA
1099 PALM DRIVE

VENICE, CA 90291
716-935-8206
March 7, 2020
Premium, Inc.
1005 16th Street
Cut and Shoot, TX 77303
Dear Client:
Your 2018 Federal S Corporation Income Tax return will be electronically

filed with the Internal Revenue Service upon receipt of a signed Form
8879S - IRS e-file Signature Authorization. No tax is payable with the
filing of this return.
Your 2019 Texas Franchise Tax Return will be electronically filed with
the State of Texas. There is a balance payable of $7,942. Mail the
payment with Form 05-170 Texas Franchise Tax Payment Form as soon as
possible. Write the Texas taxpayer identification number and the report
year on the check or money order.
Make check payable to State Comptroller and mail to:
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS

P.O. BOX 149348
AUSTIN, TX 78714-9348
You must distribute a copy of the 2018 Schedule K-1 to each shareholder.
Be sure to give each shareholder a copy of the Shareholder's
Instructions for Schedule K-1 (Form 1120S).
Please call if you have any questions.
Sincerely,
RAYCHAEL ROSS
2018 Federal Income Tax Summary Page 1
Premium, Inc. 11-1111111
ORDINARY INCOME
Gross receipts less returns/allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,410,000
Cost of goods sold (Form 1125-A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736,741
Gross Profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,673,259
Total income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,673,259
ORDINARY DEDUCTIONS
Compensation of officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Salaries/wages (less employment cr.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442,103
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206,106
Rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Taxes and licenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,101
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,222
Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,254
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Other deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,899
Total deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,033,685
Ordinary business income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 639,574

REFUND OR AMOUNT DUE
Balance due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
SCHEDULE K - INCOME
Ordinary business income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 639,574
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
SCHEDULE K - DEDUCTIONS
Charitable contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
SCHEDULE K - ITEMS AFFECTING BASIS

Nondeductible expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Property distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
SCHEDULE K - OTHER INFORMATION
Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Income (loss) reconciliation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 719,574
SCHEDULE L - BALANCE SHEET

Beginning Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214,848
Beginning Liabilities & Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214,848
Ending Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844,422
Ending Liabilities & Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844,422
2018 Federal Balance Sheet Summary Page 1
ENDING ASSETS
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 612,410
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123,104
Less: Allowance for bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0) 123,104
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,467
Other current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,582
Buildings and other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185,348
Less: Accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (99,489) 85,859
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844,422

ENDING LIABILITIES & EQUITY
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,300
Short-term notes payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100
Long-term notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,300
Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715,722
Total Liabilities and Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844,422

2018 Texas Income Tax Summary Page 1
Premium, Inc.
REVENUE
Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,410,000
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Total gross revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,510,000
Deductions from gross revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,410,000
COST OF GOODS SOLD
Cost of goods sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 730,601
Total cost of goods sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 730,601
COMPENSATION
Wages and cash compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,351,077
Total compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,351,077
MARGIN
Percent margin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,687,000
COGS margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,679,399
Compensation margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,058,923
Less than 1 million margin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,410,000
Margin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,058,923
APPORTIONMENT FACTOR
Gross receipts in Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,410,000
Gross receipts everywhere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,410,000
Apportionment factor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00000
TAXABLE MARGIN
Apportioned margin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,058,923
Taxable margin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,058,923
TAX DUE
Tax rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7500%
Tax due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,942
TAX ADJUSTMENTS
Tax due before discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,942
AMOUNT DUE AND PAYABLE

Total amount due and payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,942
TAX RATES
Marginal tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8%
Effective tax rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8%
2018 Federal Worksheets Page 1
Computation of Ending Accumulated Depreciation

Form 1120S, Schedule L, Line 10b
Beginning Balance of Accumulated Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,235.

Current Year Book Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,254.
Accumulated Depreciation on Assets Sold This Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.
Ending Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,489.
Reconciliation of Retained Earnings

Form 1120S, Schedule L, Line 24
Beginning Retained Earnings, Sch. L, Line 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,148.

Net Income (Loss) Per Books (Sch. M-1, Line 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 704,574.
Distributions:
Accumulated Adjustments Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -100,000.
Ending Retained Earnings, Schedule L, Line 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715,722.
2018 Federal Schedule K Worksheets Page 1
Schedule K, Line 4
Interest Income
........................................................................................................... $ 100,000.
Total $ 100,000.
Schedule K, Line 17d

Section 199A Wages
Compensation of Officers (Form 1120S, page 1, line 7). . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000.

Salaries & Wages (Form 1120S, page 1, line 8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442,103.
Cost of Labor (Form 1125-A, line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203,102.
Farm Labor Hired (Schedule F) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.
Wages and Salaries (Form 8825). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.
Wages and Salaries (Other Rentals). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.
Section 199A Wages from Passthrough K-1s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.
Total $ 795,205.
2018 Schedule K-1 Allocation Summary Worksheet Page 1
S/H# Shareholder Name

----- ------------------------------------------
1. John Parsons
2. George Smith
Total on Shareholder Shareholder

Box Item Schedule K 1. 2.
---- -------------------------------- ----------- ----------- -----------
H K-1 Allocation Percentage 70 30
1 Ordinary business income 639,574. 447,702. 191,872.
4a Interest income 100,000. 70,000. 30,000.
12 Charitable contributions 20,000. 14,000. 6,000.
16 Nondeductible expenses 15,000. 10,500. 4,500.
16 Distributions 100,000. 70,000. 30,000.
17 Investment income 100,000. 70,000. 30,000.
17 Qualified business income 639,574. 447,702. 191,872.
17 Section 199A W-2 wages 795,205. 556,644. 238,561.
2018 Passthrough Entity Summary Worksheet Page 1
1.
Entity Entity
Item Schedule K Totals 1.
------------------------------------ ---------- ---------- ----------
Interest income 100,000. 100,000. 100,000.
Cash Contributions - 60% limitation 20,000. 20,000. 20,000.
Investment income 100,000. 100,000. 100,000.
2018 Shareholder's Basis Computation
S Corporation Name Employer I.D. number

Name of Shareholder Shareholder's I.D. number
John Parsons 123-45-6781
1. STOCK BASIS AT BEGINNING OF TAX YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INCREASES: DECREASES:
2. Ordinary income . . . . . . . . . . . . . . . . . . . . . . 447,702. 13. Nondeductible expenses . . . . . . . . . . . . . . . . 10,500.
3. Net income from rental activities . . . . . . . 14. Oil and gas depletion . . . . . . . . . . . . . . . . . . .
4. Net portfolio income. . . . . . . . . . . . . . . . . . . 70,000. 15. Ordinary loss. . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Net gain under Section 1231. . . . . . . . . . . 16. Net loss from rental activities. . . . . . . . . . . .
6. Other income . . . . . . . . . . . . . . . . . . . . . . . . . 17. Net portfolio loss . . . . . . . . . . . . . . . . . . . . . . .
7. Tax-exempt interest income. . . . . . . . . . . . 18. Net loss under Section 1231. . . . . . . . . . . . .
8. Other tax-exempt income. . . . . . . . . . . . . . 19. Other loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9. Net gain on disposition of Section 179 assets. . . . . 20. Charitable contributions . . . . . . . . . . . . . . . . . 14,000.
10. Oil and gas depletion in excess of basis 21. Section 179 expense deduction. . . . . . . . . .
11. OTHER INCREASES: 22. Deductions related to portfolio income (loss). . . . . . .
23. Other deductions . . . . . . . . . . . . . . . . . . . . . . .
24. Investment interest expense. . . . . . . . . . . . .
25. Total foreign taxes. . . . . . . . . . . . . . . . . . . . . .
26. Section 59(e) expenses . . . . . . . . . . . . . . . . .
27. Prior year loss in excess of basis . . . . . . . .
28. OTHER DECREASES:
29. Property distributions (including cash). . . . 70,000.

12. TOTAL INCREASES: (add lines 2 - 11) . 517,702. 30. TOTAL DECREASES (add lines 13 - 29) . 94,500.
31. STOCK BASIS AT END OF TAX YEAR. (Line 1 plus line 12 minus line 30) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423,202.
32. DEBT BASIS AT BEGINNING OF TAX YEAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.

33. ADJUSTMENTS TO DEBT BASIS:
34. DEBT BASIS AT END OF TAX YEAR (Combine Line 32 and 33). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.
35. SHAREHOLDER'S TOTAL BASIS AT END OF TAX YEAR (Add Line 31 and 34) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423,202.
SPSL0212L 05/31/18
2018 Shareholder's Basis Computation
S Corporation Name Employer I.D. number

Name of Shareholder Shareholder's I.D. number
George Smith 123-45-6782
1. STOCK BASIS AT BEGINNING OF TAX YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INCREASES: DECREASES:
2. Ordinary income . . . . . . . . . . . . . . . . . . . . . . 191,872. 13. Nondeductible expenses . . . . . . . . . . . . . . . . 4,500.
3. Net income from rental activities . . . . . . . 14. Oil and gas depletion . . . . . . . . . . . . . . . . . . .
4. Net portfolio income. . . . . . . . . . . . . . . . . . . 30,000. 15. Ordinary loss. . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Net gain under Section 1231. . . . . . . . . . . 16. Net loss from rental activities. . . . . . . . . . . .
6. Other income . . . . . . . . . . . . . . . . . . . . . . . . . 17. Net portfolio loss . . . . . . . . . . . . . . . . . . . . . . .
7. Tax-exempt interest income. . . . . . . . . . . . 18. Net loss under Section 1231. . . . . . . . . . . . .
8. Other tax-exempt income. . . . . . . . . . . . . . 19. Other loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9. Net gain on disposition of Section 179 assets. . . . . 20. Charitable contributions . . . . . . . . . . . . . . . . . 6,000.
10. Oil and gas depletion in excess of basis 21. Section 179 expense deduction. . . . . . . . . .
11. OTHER INCREASES: 22. Deductions related to portfolio income (loss). . . . . . .
23. Other deductions . . . . . . . . . . . . . . . . . . . . . . .
24. Investment interest expense. . . . . . . . . . . . .
25. Total foreign taxes. . . . . . . . . . . . . . . . . . . . . .
26. Section 59(e) expenses . . . . . . . . . . . . . . . . .
27. Prior year loss in excess of basis . . . . . . . .
28. OTHER DECREASES:
29. Property distributions (including cash). . . . 30,000.

12. TOTAL INCREASES: (add lines 2 - 11) . 221,872. 30. TOTAL DECREASES (add lines 13 - 29) . 40,500.
31. STOCK BASIS AT END OF TAX YEAR. (Line 1 plus line 12 minus line 30) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181,372.
32. DEBT BASIS AT BEGINNING OF TAX YEAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.

33. ADJUSTMENTS TO DEBT BASIS:
34. DEBT BASIS AT END OF TAX YEAR (Combine Line 32 and 33). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.
35. SHAREHOLDER'S TOTAL BASIS AT END OF TAX YEAR (Add Line 31 and 34) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181,372.
SPSL0212L 05/31/18
2018 Schedule of S Corporation Officers Page 1
Officer Name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . John Parsons

Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $75,000.
Percent of Stock Owned. . . . . . . . . . . . . . . . . . . . . . . . 70.00%
Officer Name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . George Smith

Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $75,000.
Percent of Stock Owned. . . . . . . . . . . . . . . . . . . . . . . . 30.00%
2018 Texas Worksheets Page 1
Texas Franchise Tax

Deductions From Gross Revenue
Net distributive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000.

Total deductions from gross revenue 100,000.
Texas Franchise Tax

Cost of Goods Sold
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278,143.
COGS - salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203,102.
Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249,356.
Total cost of goods sold 730,601.
Texas Franchise Tax

Wages and Cash Compensation
John Parsons (Limited to $370K) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000.

George Smith (Limited to $370K) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000.
COGS - salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203,102.
Deductions - salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442,103.
Net distributive income (See NDI worksheet). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555,872.
Total wages and cash compensation from reporting entity 1,351,077.
Total wages and cash compensation 1,351,077.
Texas Franchise Tax

Net Distributable Income Worksheet
John Parsons (Limits applied to total comp). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370,000.

George Smith (Limits applied to total comp). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185,872.
Total 555,872.
Pursuant to requirements by the Texas Comptroller's Office, certain required input must be present and correct
before the tax program will generate printable Texas forms. Please resolve all Texas Critical Diagnostics
reported on the Diagnostics tab so that Texas forms may be viewable in the tax program.
7011
Form 8879-S IRS e-file Signature Authorization for Form 1120S
OMB No. 1545-0123
G Return completed Form 8879-S to ERO. (Don't send to IRS.)
Department of the Treasury

G Go to www.irs.gov/Form8879S for the latest information. 2018
Internal Revenue Service For calendar year 2018, or tax year beginning , 2018, and ending , .
Name of corporation Employer identification number

Part I Tax Return Information (Whole dollars only)
1 Gross receipts or sales less returns and allowances (Form 1120S, line 1c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2,410,000.
2 Gross profit (Form 1120S, line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1,673,259.
3 Ordinary business income (loss) (Form 1120S, line 21). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 639,574.
4 Net rental real estate income (loss) (Form 1120S, Schedule K, line 2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 719,574.
Income (loss) reconciliation (Form 1120S, Schedule K, line 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Part II Declaration and Signature Authorization of Officer (Be sure to get a copy of the corporation's return)
Under penalties of perjury, I declare that I am an officer of the above corporation and that I have examined a copy of the corporation's 2018
electronic income tax return and accompanying schedules and statements and to the best of my knowledge and belief, it is true, correct, and
complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the corporation's electronic income tax
return. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the corporation's return to
the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission, (b) the reason for any delay
in processing the return or refund, and (c) the date of any refund. If applicable, I authorize the U.S. Treasury and its designated Financial Agent
to initiate an electronic funds withdrawal (direct debit) entry to the financial institution account indicated in the tax preparation software for
payment of the corporation's federal taxes owed on this return, and the financial institution to debit the entry to this account. To revoke a
payment, I must contact the U.S. Treasury Financial Agent at 1-888-353-4537 no later than 2 business days prior to the payment (settlement)
date. I also authorize the financial institutions involved in the processing of the electronic payment of taxes to receive confidential information
necessary to answer inquiries and resolve issues related to the payment. I have selected a personal identification number (PIN) as my signature
for the corporation's electronic income tax return and, if applicable, the corporation's consent to electronic funds withdrawal.
Officer's PIN: check one box only
X I authorize Raychael Ross, CPA to enter my PIN 39670 as my signature

ERO firm name Don't enter all zeros
on the corporation's 2018 electronically filed income tax return.
As an officer of the corporation, I will enter my PIN as my signature on the corporation's 2018 electronically filed income tax return.
Officer's signature G Date G Title G
Part III Certification and Authentication
ERO's EFIN/PIN. Enter your six-digit EFIN followed by your five-digit self-selected PIN.
Don't enter all zeros
I certify that the above numeric entry is my PIN, which is my signature on the 2018 electronically filed income tax return for the corporation
indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 3112, IRS e-file Application and
Participation, and Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns.
ERO's signature G RAYCHAEL ROSS Date G
ERO Must Retain This Form ' See Instructions

Don't Submit This Form to the IRS Unless Requested To Do So
BAA For Paperwork Reduction Act Notice, see instructions. Form 8879-S (2018)
SPSA0701L 08/10/18
Form 1120S U.S. Income Tax Return for an S Corporation
G Do not file this form unless the corporation has filed or is
OMB No. 1545-0123

Internal Revenue Service
attaching Form 2553 to elect to be an S corporation.
G Go to www.irs.gov/Form1120S for instructions and the latest information.
2018
For calendar year 2018 or tax year beginning , 2018, ending ,
A S election effective date D Employer identification number
1/15/2011 TYPE 11-1111111

B Business activity code Premium, Inc. E Date incorporated
number (see instructions) OR 1005 16th Street
445299 1/15/2011
PRINT Cut and Shoot, TX 77303 F
C Check if Schedule Total assets (see instructions)
M-3 attached
$ 844,422.
G Is the corporation electing to be an S corporation beginning with this tax year? Yes X No If 'Yes,' attach Form 2553 if not already filed
H Check if: (1) Final return (2) Name change (3) Address change
(4) Amended return (5) S election termination or revocation
I Enter the number of shareholders who were shareholders during any part of the tax year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G 2
Caution: Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information.
1 a Gross receipts or sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a 2,410,000.
b Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b
I
N
c Balance. Subtract line 1b from line 1a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c 2,410,000.
C
O
2 Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 736,741.
M
E
3 Gross profit. Subtract line 2 from line 1c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1,673,259.
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G 6 1,673,259.
7 Compensation of officers (see instructions - attach Form 1125-E) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 150,000.
8 Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 442,103.
D
E 9 Repairs and maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 206,106.
D
U 10 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
C
T
11 Rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 40,000.
I
O
12 Taxes and licenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 65,101.
N 13 Interest (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 35,222.
S
14 Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562). . . . . . . . . . . . . . . . . . . 14 15,254.
S
E 15 Depletion (Do not deduct oil and gas depletion.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
E
16 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 20,000.
I 17 Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
N
S 18 Employee benefit programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
T
R 19 Other deductions (attach statement). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . See . . . . . . Statement
. . . . . . . . . . . . . . . .1 19 59,899.
S
20 Total deductions. Add lines 7 through 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G 20 1,033,685.
21 Ordinary business income (loss). Subtract line 20 from line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 639,574.
22 a Excess net passive income or LIFO recapture
tax (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 a
T
A b Tax from Schedule D (Form 1120S) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 b
X
c Add lines 22a and 22b (see instructions for additional taxes). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 c
A
N 23 a 2018 estimated tax payments and 2017 overpayment credited to 2018. . . . . . 23 a
D
b Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 b
P
A c Credit for federal tax paid on fuels (attach Form 4136). . . . . . . . . . . . . . . . . . . . . 23 c
Y d Refundable credit from Form 8827, line 8c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
M 23 d
E e Add lines 23a through 23d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
N 23 e
T
S
24 Estimated tax penalty (see instructions). Check if Form 2220 is attached. . . . . . . . . . . . . . . . . . . . . . . . G 24
25 Amount owed. If line 23e is smaller than the total of lines 22c and 24, enter amount owed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 0.
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 2019 estimated tax G Refunded G 27
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.
Sign May the IRS discuss this return
with the preparer shown below
Here
A Signature of officer Date Title
A (see instructions)?
Yes No X
Print/Type preparer's name Preparer's signature Date PTIN
Check if
Paid RAYCHAEL ROSS self-employed
Preparer
Use Only
Firm's name
G Raychael Ross, CPA Firm's EIN G
Firm's address G 1099 Palm Drive
Venice, CA 90291 Phone no. 716-935-8206
BAA For Paperwork Reduction Act Notice, see separate instructions. SPSA0112L 08/23/18 Form 1120S (2018)
Form 1120S (2018) Premium, Inc. 11-1111111 Page 2
Schedule B Other Information (see instructions) Yes No
1 Check accounting method: a Cash b X Accrual c Other (specify)G
2 See the instructions and enter the:
a Business activity G Sales b Product or service . . . G Candy
3 At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a
nominee or similar person? If "Yes," attach Schedule B-1, Information on Certain Shareholders of an S Corporation . . . . . . X
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 of
any foreign or domestic corporation? For rules of constructive ownership, see instructions. If "Yes," complete (i)
through (v) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
(i) Name of Corporation (ii) Employer (iii) Country of (iv) Percentage (v) If Percentage in (iv)
Identification Incorporation of Stock Owned is 100%, Enter the
Number (if any) Date (if any) a Qualified
Subchapter S
Subsidiary Election
Was Made
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. . . . . . . . . . . . . . . . . . X
(i) Name of Entity (ii) Employer (iii) Type (iv) Country of (v) Maximum %
Identification of Entity Organization Owned in Profit,
Number (if any) Loss, or Capital
5 a At the end of the tax year, did the corporation have any outstanding shares of restricted stock?. . . . . . . . . . . . . . . . . . . . . . . . . . X
If "Yes," complete lines (i) and (ii) below.
(i) Total shares of restricted stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G
(ii) Total shares of non-restricted stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G
b At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments?. . . . . . X
If "Yes," complete lines (i) and (ii) below.
(i) Total shares of stock outstanding at the end of the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G
(ii) Total shares of stock outstanding if all instruments were executed . . . . . . . . . . . . . . . . . . . . . . . . . . G
6 Has this corporation filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide
information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
7 Check this box if the corporation issued publicly offered debt instruments with original issue discount . . . . . . . . . . . . . . . G
If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount
Instruments.
8 If the corporation (a) was a C corporation before it elected to be an S corporation or the corporation acquired an
asset with a basis determined by reference to the basis of the asset (or the basis of any other property) in
the hands of a C corporation and (b) has net unrealized built-in gain in excess of the net recognized built-in gain
from prior years, enter the net unrealized built-in gain reduced by net recognized built-in gain from prior years (see
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G $
9 Did the corporation have an election under section 163(j) for any real property trade or business or any farming business
in effect during the tax year? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
10 Does the corporation satisfy one of the following conditions and the corporation doesn't own a pass-through entity with
current year, or prior year carryover, excess business interest expense? See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
a The corporation's aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years
preceding the current tax year don't exceed $25 million, and the corporation isn't a tax shelter; or
b The corporation only has business interest expense from (1) an electing real property trade or business, (2) an electing
farming business, or (3) certain utility businesses under section 163(j)(7).
If "No," 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 $250,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
If "Yes," the corporation is not required to complete Schedules L and M-1.
SPSA0112L 08/23/18 Form 1120S (2018)
Schedule B Other Information (see instructions) (continued) Yes No
12 During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had the
terms modified so as to reduce the principal amount of the debt?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
If "Yes," enter the amount of principal reduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G$
13 During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If "Yes," see instructions. . . . . X
14a Did the corporation make any payments in 2018 that would require it to file Form(s) 1099? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
b If "Yes," did the corporation file or will it file required Forms 1099?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
15 Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . X
If "Yes," enter the amount from Form 8996, line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G$
Schedule K Shareholders' Pro Rata Share Items Total amount
Income 1 Ordinary business income (loss) (page 1, line 21). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 639,574.
(Loss) 2 Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 a Other gross rental income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 100,000.
5 Dividends: a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5a
b Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5b
6 Royalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 a Net long-term capital gain (loss) (attach Schedule D (Form 1120S)). . . . . . . . . . . . . . . . . . . . . . . . . . 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). . . . . . . . . TypeG 10
Deduc- 11 Section 179 deduction (attach Form 4562). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
tions 12 a Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . See
. . . . . . Statement
...............2 ...... 12 a 20,000.
b Investment interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 b
c Section 59(e)(2) expenditures (1) Type G (2) Amount G 12 c (2)
d Other deductions (see instructions) . . Type G 12 d
Credits 13 a Low-income housing credit (section 42(j)(5)). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 a
b Low-income housing credit (other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 b
c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) . . . . . . . . . . . . . . . . . . . . . . . . 13 c
d Other rental real estate credits (see instrs) Type G 13 d
e Other rental credits (see instrs) Type G 13 e
f Biofuel producer credit (attach Form 6478) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 f
g Other credits (see instructions) . . . . . . TypeG 13 g
Foreign 14 a Name of country or U.S. possession G
Trans- b Gross income from all sources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 b
actions
c Gross income sourced at shareholder level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 c
Foreign gross income sourced at corporate level
d Section 951A category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 d
e Foreign branch category. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 e
f Passive category. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 f
g General category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 g
h Other (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 h
Deductions allocated and apportioned at shareholder level
i Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 i
j Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 j
Deductions allocated and apportioned at corporate level to foreign source income
k Section 951A category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 k
l Foreign branch category. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 l
m Passive category. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 m
n General category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 n
o Other (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 o
Other information
p Total foreign taxes (check one): G Paid Accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 p
q Reduction in taxes available for credit
(attach statement). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 q
r Other foreign tax information (attach statement)
BAA SPSA0134L 08/23/18 Form 1120S (2018)
Schedule K Shareholders' Pro Rata Share Items (continued) Total amount
Alterna- 15 a Post-1986 depreciation adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 a
tive b Adjusted gain or loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15b
Mini-
mum c Depletion (other than oil and gas). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 c
Tax d Oil, gas, and geothermal properties ' gross income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15d
(AMT)
Items e Oil, gas, and geothermal properties ' deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 e
f Other AMT items (attach statement). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 f
Items 16 a Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 a
Affec- b Other tax-exempt income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b
ting
Share- c Nondeductible expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . See . . . . . . Statement
...............3 .......... 16 c 15,000.
holder
Basis
d Distributions (attach stmt if required) (see instrs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16d 100,000.
e Repayment of loans from shareholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 e
Other 17 a Investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 a 100,000.
Infor- b Investment expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 b
mation
c Dividend distributions paid from accumulated earnings and profits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 c
d Other items and amounts
(attach statement) See Statement 4
Recon- 18 Income/loss reconciliation. Combine the amounts on lines 1 through 10 in the far right column.
ciliation From the result, subtract the sum of the amounts on lines 11 through 12d and 14p. . . . . . . . . . . . . . . . 18 719,574.
Schedule L Balance Sheets per Books Beginning of tax year End of tax year
Assets (a) (b) (c) (d)
1 Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,840. 612,410.
2 a Trade notes and accounts receivable. . . . . . . . 93,100. 123,104.
b Less allowance for bad debts . . . . . . . . . . . . . . . 93,100. 123,104.
3 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,607. 3,467.
4 U.S. government obligations. . . . . . . . . . . . . . . .
5 Tax-exempt securities (see instructions). . . . .
6 Other current assets (attach stmt). . . . . See . . . . . . St
. . . . .5.. 8,333. 17,582.
7 Loans to shareholders. . . . . . . . . . . . . . . . . . . . . .
8 Mortgage and real estate loans . . . . . . . . . . . . .
9 Other investments (attach statement) . . . . . . . . . . . . . . .
10 a Buildings and other depreciable assets. . . . . . 138,203. 185,348.
b Less accumulated depreciation . . . . . . . . . . . . . 84,235. 53,968. 99,489. 85,859.
11 a Depletable assets. . . . . . . . . . . . . . . . . . . . . . . . . .
b Less accumulated depletion . . . . . . . . . . . . . . . .
12 Land (net of any amortization). . . . . . . . . . . . . . 2,000. 2,000.
13 a Intangible assets (amortizable only). . . . . . . . .
b Less accumulated amortization . . . . . . . . . . . . .
14 Other assets (attach stmt). . . . . . . . . . . . . . . . . .
15 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214,848. 844,422.
Liabilities and Shareholders' Equity
16 Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . 42,500. 72,300.
17 Mortgages, notes, bonds payable in less than 1 year . . . . 4,500. 2,100.
18 Other current liabilities (attach stmt). . . . . . . . . . . . . . . .
19 Loans from shareholders . . . . . . . . . . . . . . . . . . .
20 Mortgages, notes, bonds payable in 1 year or more . . . . . 26,700. 24,300.
21 Other liabilities (attach statement) . . . . . . . . . . . . . . . . .
22 Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000. 30,000.
23 Additional paid-in capital . . . . . . . . . . . . . . . . . . .
24 Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . 111,148. 715,722.
25 Adjustments to shareholders' equity (att stmt). . . . . . . . .
26 Less cost of treasury stock . . . . . . . . . . . . . . . . .
27 Total liabilities and shareholders' equity . . . . . 214,848. 844,422.
SPSA0134L 08/23/18 Form 1120S (2018)
Premium, Inc.
Form 1120S (2018) 11-1111111 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. . . . . . . . . . . . . . . . 704,574. 5 Income recorded on books this year not included
2 Income included on Schedule K, lines 1, 2, 3c, 4, 5a, 6, 7, on Schedule K, lines 1 through 10 (itemize):
8a, 9, and 10, not recorded on books this year (itemize): a Tax-exempt interest. $
3 Expenses recorded on books this year not 6 Deductions included on Schedule K, lines 1 through
included on Schedule K, lines 1 through 12 12 and 14p, not charged against book income this
and 14p (itemize): year (itemize):
$
a Depreciation. . . . . . . . a Depreciation. . . . $
$
b Travel and entertainment ..
See Statement 6 15,000.
15,000. 7 Add lines 5 and 6. . . . . . . . . . . . . . . . . . . . . . . 0.
4 719,574. 8 Income (loss) (Schedule K, line 18). Line 4 less line 7
Add lines 1 through 3 . . . . . . . . . . . . . . . . . . . . . . 719,574.
Schedule M-2 Analysis of Accumulated Adjustments Account, Shareholders' Undistributed Taxable Income
Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments Account
(see instructions)
(a) Accumulated (b) Shareholders' (c) Accumulated (d) Other adjustments
adjustments account undistributed taxable
income previously taxed earnings and profits account
1 Balance at beginning of tax year. . . . . . . . . . . . . . . . . . . . . . . . 111,148.
2 Ordinary income from page 1, line 21 . . . . . . . . . . . . . . . . . . . 639,574.
3 Other additions . . . . . . . . . . . . .See . . . . . .Statement
. . . . . . . . . . . . . . .7...... 100,000.
4 Loss from page 1, line 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Other reductions. . . . . . . . . . . .See . . . . . .Statement
. . . . . . . . . . . . . . .8...... ( 35,000.)
6 Combine lines 1 through 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815,722.
7 Distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000.
8 Balance at end of tax year. Subtract line 7 from line 6. . . . 715,722.
SPSA0134L 08/23/18 Form 1120S (2018)
Form 1125-A Cost of Goods Sold
(Rev. November 2018) OMB No. 1545-0123
G Attach to Form 1120, 1120-C, 1120-F, 1120S, or 1065.
Internal Revenue Service G Go to www.irs.gov/Form1125A for the latest information.
Name Employer identification number

1 Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9,607.
2 Purchases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 278,143.
3 Cost of labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 203,102.
4 Additional section 263A costs (attach schedule). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Other costs (attach schedule). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .See . . . . . .Statement
. . . . . . . . . . . . . . .9...... 5 249,356.
6 Total. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 740,208.
7 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3,467.
8 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 736,741.
9 a Check all methods used for valuing closing inventory:
(i) X Cost
(ii) Lower of cost or market
(iii) Other (Specify method used and attach explanation.) G
b Check if there was a writedown of subnormal goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G
c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) . . . . . . . . . . . . . . . . . . . G
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 X No
f Was there any change in determining quantities, cost, or valuations between opening and
closing inventory? If "Yes," attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes X No
BAA For Paperwork Reduction Act Notice, see instructions. Form 1125-A (Rev. 11-2018)
CPCZ0401L 09/26/18
671117
Final K-1 Amended K-1 OMB No. 1545-0123
Schedule K-1
(Form 1120S) 2018 Part III Shareholder's Share of Current Year Income,
Department of the Treasury For calendar year 2018, or tax year Deductions, Credits, and Other Items
1 Ordinary business income (loss) 13 Credits
/ / / /
beginning ending
447,702.
2 Net rental real estate income (loss)
Shareholder's Share of Income, Deductions,
Credits, etc. G See page 2 of form and separate instructions. 3 Other net rental income (loss)
Part I Information About the Corporation

4 Interest income
A Corporation's employer identification number 70,000.
11-1111111 5 a Ordinary dividends
B Corporation's name, address, city, state, and ZIP code
Premium, Inc. 5 b Qualified dividends 14 Foreign transactions
1005 16th Street
Cut and Shoot, TX 77303 6 Royalties
7 Net short-term capital gain (loss)

C IRS Center where corporation filed return
e-file 8 a Net long-term capital gain (loss)
Part II Information About the Shareholder

8 b Collectibles (28%) gain (loss)
D Shareholder's identifying number
123-45-6781 8 c Unrecaptured section 1250 gain
E Shareholder's name, address, city, state, and ZIP code
John Parsons 9 Net section 1231 gain (loss)
,
10 Other income (loss) 15 Alternative minimum tax (AMT) items
F Shareholder's percentage of stock

ownership for tax year . . . . . . . . . . . . . . . . . . . . . 70 %
11 Section 179 deduction 16 Items affecting shareholder basis

C* 10,500.
F 12 Other deductions
O
R A 14,000. D 70,000.
I
R
S
U
S
E
O 17 Other information
N
L A 70,000.
Y
V 447,702.
W 556,644.
*See attached statement for additional information.

BAA For Paperwork Reduction Act Notice, see the Instructions for Form 1120S. Schedule K-1 (Form 1120S) 2018
Shareholder 1
SPSA0412L 11/28/18
Schedule K-1 (Form 1120S) 2018 Premium, Inc. 11-1111111 Page 2
This list identifies the codes used on Schedule K-1 for all shareholders and provides summarized reporting information for shareholders
who file Form 1040. For detailed reporting and filing information, see the separate Shareholder's Instructions for Schedule K-1 and the
instructions for your income tax return.
1 Ordinary business income (loss). Determine whether the income (loss) is passive Code Report on
or nonpassive and enter on your return as follows:
Report on O Backup withholding See the Shareholder's Instructions
Passive loss See the Shareholder's Instructions

P Other credits See the Shareholder's Instructions
Passive income Schedule E, line 28, column (h) 14 Foreign transactions
Nonpassive loss See the Shareholder's Instructions

A Name of country or U.S. possession
Nonpassive income Schedule E, line 28, column (k) B Gross income from all sources Form 1116, Part I
See the Shareholder's Instructions C Gross income sourced at
2 Net rental real estate income (loss) shareholder level
3 Other net rental income (loss) Foreign gross income sourced at corporate level
Net income Schedule E, line 28, column (h) D Section 951A category
Net loss See the Shareholder's Instructions E Foreign branch category
4 Interest income Form 1040, line 2b F Passive category Form 1116, Part I
5 a Ordinary dividends Form 1040, line 3b G General category

5 b Qualified dividends Form 1040, line 3a H Other
6 Royalties Schedule E, line 4 Deductions allocated and apportioned at shareholder level
7 Net short-term capital gain (loss) Schedule D, line 5 I Interest expense Form 1116, Part I
8 a Net long-term capital gain (loss) Schedule D, line 12 J Other Form 1116, Part I
8 b Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4 Deductions allocated and apportioned at corporate level
(Schedule D instructions)
to foreign source income
8 c Unrecaptured section 1250 gain See the Shareholder's Instructions
K Section 951A category
9 Net section 1231 gain (loss) See the Shareholder's Instructions
L Foreign branch category
10 Other income (loss) M Passive category Form 1116, Part I
Code N General category
A Other portfolio income (loss) See the Shareholder's Instructions
O Other
B Involuntary conversions See the Shareholder's Instructions
Other information
C Sec. 1256 contracts and straddles Form 6781, line 1 P Total foreign taxes paid Form 1116, Part II
D Mining exploration costs recapture See Pub. 535 Q Total foreign taxes accrued Form 1116, Part II
E Section 951A income R Reduction in taxes available for credit Form 1116, line 12
F Section 965(a) inclusion S Foreign trading gross receipts Form 8873
G Subpart F income other than See the Shareholder's Instructions T Extraterritorial income exclusion Form 8873
sections 951A and 965 inclusion
U Section 965 information See the Shareholder's Instructions
H Other income (loss)
11 Section 179 deduction See the Shareholder's Instructions V Other foreign transactions See the Shareholder's Instructions
15 Alternative minimum tax (AMT) items
12 Other deductions
A Post-1986 depreciation adjustment
A Cash contributions (60%)
B Adjusted gain or loss
B Cash contributions (30%) C Depletion (other than oil & gas) See the Shareholder's
C Noncash contributions (50%) D Oil, gas, & geothermal ' gross income Instructions and the
Instructions for Form 6251
D Noncash contributions (30%) See the Shareholder's Instructions E Oil, gas, & geothermal ' deductions
E Capital gain property to a 50% F Other AMT items
organization (30%) 16 Items affecting shareholder basis
F Capital gain property (20%) A Tax-exempt interest income Form 1040, line 2a
G Contributions (100%) B Other tax-exempt income
H Investment interest expense Form 4952, line 1 C Nondeductible expenses See the Shareholder's
I Deductions ' royalty income Schedule E, line 19 D Distributions Instructions
J Section 59(e)(2) expenditures See the Shareholder's Instructions E Repayment of loans from shareholders
K Section 965(c) deduction See the Shareholder's Instructions 17 Other information
L Deductions ' portfolio (other) Schedule A, line 16 A Investment income Form 4952, line 4a
M Preproductive period expenses See the Shareholder's Instructions B Investment expenses Form 4952, line 5
N Commercial revitalization deduction from
rental real estate activities See Form 8582 instructions C Qualified rehabilitation expenditures See the Shareholder's Instructions
(other than rental real estate)
O Reforestation expense deduction See the Shareholder's Instructions See the Shareholder's Instructions
D Basis of energy property
P through R Reserved for future use
E Recapture of low-income housing credit
S Other deductions See the Shareholder's Instructions (section 42(j)(5)) Form 8611, line 8
13 Credits F Recapture of low-income housing credit
(other) Form 8611, line 8
A Low-income housing credit (section 42(j)(5)) G Recapture of investment credit See Form 4255
from pre-2008 buildings
B Low-income housing credit (other) from H Recapture of other credits See the Shareholder's Instructions
pre-2008 buildings
C Low-income housing credit (section 42(j)(5)) I Look-back interest ' completed long-term contracts See Form 8697
from post-2007 buildings
See the Shareholder's Instructions J Look-back interest ' income forecast method See Form 8866
D Low-income housing credit (other) from
post-2007 buildings K Dispositions of property with section 179 deductions
E Qualified rehabilitation expenditures (rental
L Recapture of section 179 deduction
real estate)
F Other rental real estate credits M through U
G Other rental credits V Section 199A income
H Undistributed capital gains credit Schedule 5 (Form 1040), line 74, box a W Section 199A W-2 wages
I Biofuel producer credit
X See the
Section 199A unadjusted basis Shareholder's
J Work opportunity credit Y Section 199A REIT dividends Instructions
K Disabled access credit
See the Shareholder's Instructions Z Section 199A PTP income
L Empowerment zone employment credit AA Excess taxable income
M Credit for increasing research activities AB Excess business interest income
N Credit for employer social security AC Other information
and Medicare taxes
Shareholder 1 : John Parsons 123-45-6781

SPSA0412L 11/28/18
Schedule K-1 (Form 1120S) 2018 Supplemental Information Page 3
Box 16
Items Affecting Shareholder Basis
* Descriptive Information
C Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,500.
Shareholder 1 : John Parsons 123-45-6781

SPSL1201L 05/26/18
2018 SHAREHOLDER'S SHARE OF INVESTMENT IN PASSTHROUGH ENTITIES
Note: The amounts on this schedule are provided for informational purposes only. These amounts are already included on Schedule K-1.
Shareholder's Name Shareholder's identification number

Employer Final Specified Service
Name of Passthrough Entity Identification No. Type of Entity K-1 Business
A Passive
B
C
D
Passthrough Entities
A B C D
Ordinary business income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .
Net rental real estate income (loss). . . . . . . . . . . . . . . . . . . . . . . .

Other net rental income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000.
Ordinary dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Royalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income
(Loss) Net short-term capital gain (loss). . . . . . . . . . . . . . . . . . . . . . . . . .
Net long-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .
Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecaptured section 1250 gain. . . . . . . . . . . . . . . . . . . . . . . . . . .

Guaranteed payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net section 1231 gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 179 expense deduction. . . . . . . . . . . . . . . . . . . . . . . . . . .
Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000.

Deduc- Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
tions
Section 59(e)(2) expense: Intangible Drilling costs. . . . . . . . . . . . . .
Section 59(e)(2) expense: Dry Hole expense. . . . . . . . . . . . . . . . . .
Other section 59(e)(2) expenses . . . . . . . . . . . . . . . . . . . . . . . . . .

Other deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Low-income housing credit:
(1) Form section 42(j)(5) partnerships: before 2008. . . . . . . . . . .

(2) Other: before 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Form section 42(j)(5) partnerships: after 2007. . . . . . . . . . . .
(4) Other: after 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qual. rehabilitation expenditures related to rental real estate act. . . .
Other rental real estate credits . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other rental credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Biofuel producer credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Work opportunity credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credits Orphan drug credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit for increasing research. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disabled access credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Empowerment zone community employment. . . . . . . . . . . . . . . . . .

Credit for employer Soc. Sec. tax paid on certain employee tips . . . .
Indian employment credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Small employer pension plan startup costs credit. . . . . . . . . . . . . . .

Credit for employer-provided childcare. . . . . . . . . . . . . . . . . . . . . .
Alternative motor vehicle credit. . . . . . . . . . . . . . . . . . . . . . . . . . .
Other credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SPSL0312L 12/19/18
Shareholder 1
Page 2

A Passive
B
C
D
A B C D
Post-1986 depreciation adjustment. . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . ...........

Alter-
native Depletion (other than oil and gas) . . . . . . . . . . . . . . ...........
Mini-
mum Oil, gas, and geothermal properties ' gross income. ...........
Tax
(AMT) Oil, gas, and geothermal properties ' deductions. . . ...........
Items
Accel. depreciation on real property placed in service before 1987. . .
Accel. depr. on leased personal prop. in service before 1987 . . . . . .
Other AMT items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax-
Exempt Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inc and
Nonde- Other tax-exempt income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ductible
Exp Nondeductible expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000.

Investment expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recapture of Low-Income housing credit ' 42(j)(5) partnerships. . . .
Other Recapture of Low-Income housing credit ' other . . . . . . . . . . . . . .
Infor-
mation Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
W-2 wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unadjusted basis . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 199A REIT dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . .
PTP income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
QBI allocable to qual. pmts. received from coop. . . . .
W-2 wages alloc. to qual. pmts. received from coop. .
Excess taxable income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess business interest income. . . . . . . . . . . . . . . . . . . . . . . . . .

Supplemental Information:
SPSL0312L 03/08/19
Shareholder 1
671117
Final K-1 Amended K-1 OMB No. 1545-0123
Schedule K-1
(Form 1120S) 2018 Part III Shareholder's Share of Current Year Income,
Department of the Treasury For calendar year 2018, or tax year Deductions, Credits, and Other Items
1 Ordinary business income (loss) 13 Credits
/ / / /
beginning ending
191,872.
2 Net rental real estate income (loss)
Shareholder's Share of Income, Deductions,
Credits, etc. G See page 2 of form and separate instructions. 3 Other net rental income (loss)
Part I Information About the Corporation

4 Interest income
A Corporation's employer identification number 30,000.
11-1111111 5 a Ordinary dividends
B Corporation's name, address, city, state, and ZIP code
Premium, Inc. 5 b Qualified dividends 14 Foreign transactions
1005 16th Street
Cut and Shoot, TX 77303 6 Royalties
7 Net short-term capital gain (loss)

C IRS Center where corporation filed return
e-file 8 a Net long-term capital gain (loss)
Part II Information About the Shareholder

8 b Collectibles (28%) gain (loss)
D Shareholder's identifying number
123-45-6782 8 c Unrecaptured section 1250 gain
E Shareholder's name, address, city, state, and ZIP code
George Smith 9 Net section 1231 gain (loss)
,
10 Other income (loss) 15 Alternative minimum tax (AMT) items
F Shareholder's percentage of stock

ownership for tax year . . . . . . . . . . . . . . . . . . . . . 30 %
11 Section 179 deduction 16 Items affecting shareholder basis

C* 4,500.
F 12 Other deductions
O
R A 6,000. D 30,000.
I
R
S
U
S
E
O 17 Other information
N
L A 30,000.
Y
V 191,872.
W 238,561.
*See attached statement for additional information.

BAA For Paperwork Reduction Act Notice, see the Instructions for Form 1120S. Schedule K-1 (Form 1120S) 2018
Shareholder 2
SPSA0412L 11/28/18
Schedule K-1 (Form 1120S) 2018 Premium, Inc. 11-1111111 Page 2
This list identifies the codes used on Schedule K-1 for all shareholders and provides summarized reporting information for shareholders
who file Form 1040. For detailed reporting and filing information, see the separate Shareholder's Instructions for Schedule K-1 and the
instructions for your income tax return.
1 Ordinary business income (loss). Determine whether the income (loss) is passive Code Report on
or nonpassive and enter on your return as follows:
Report on O Backup withholding See the Shareholder's Instructions
Passive loss See the Shareholder's Instructions

P Other credits See the Shareholder's Instructions
Passive income Schedule E, line 28, column (h) 14 Foreign transactions
Nonpassive loss See the Shareholder's Instructions

A Name of country or U.S. possession
Nonpassive income Schedule E, line 28, column (k) B Gross income from all sources Form 1116, Part I
See the Shareholder's Instructions C Gross income sourced at
2 Net rental real estate income (loss) shareholder level
3 Other net rental income (loss) Foreign gross income sourced at corporate level
Net income Schedule E, line 28, column (h) D Section 951A category
Net loss See the Shareholder's Instructions E Foreign branch category
4 Interest income Form 1040, line 2b F Passive category Form 1116, Part I
5 a Ordinary dividends Form 1040, line 3b G General category

5 b Qualified dividends Form 1040, line 3a H Other
6 Royalties Schedule E, line 4 Deductions allocated and apportioned at shareholder level
7 Net short-term capital gain (loss) Schedule D, line 5 I Interest expense Form 1116, Part I
8 a Net long-term capital gain (loss) Schedule D, line 12 J Other Form 1116, Part I
8 b Collectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4 Deductions allocated and apportioned at corporate level
(Schedule D instructions)
to foreign source income
8 c Unrecaptured section 1250 gain See the Shareholder's Instructions
K Section 951A category
9 Net section 1231 gain (loss) See the Shareholder's Instructions
L Foreign branch category
10 Other income (loss) M Passive category Form 1116, Part I
Code N General category
A Other portfolio income (loss) See the Shareholder's Instructions
O Other
B Involuntary conversions See the Shareholder's Instructions
Other information
C Sec. 1256 contracts and straddles Form 6781, line 1 P Total foreign taxes paid Form 1116, Part II
D Mining exploration costs recapture See Pub. 535 Q Total foreign taxes accrued Form 1116, Part II
E Section 951A income R Reduction in taxes available for credit Form 1116, line 12
F Section 965(a) inclusion S Foreign trading gross receipts Form 8873
G Subpart F income other than See the Shareholder's Instructions T Extraterritorial income exclusion Form 8873
sections 951A and 965 inclusion
U Section 965 information See the Shareholder's Instructions
H Other income (loss)
11 Section 179 deduction See the Shareholder's Instructions V Other foreign transactions See the Shareholder's Instructions
15 Alternative minimum tax (AMT) items
12 Other deductions
A Post-1986 depreciation adjustment
A Cash contributions (60%)
B Adjusted gain or loss
B Cash contributions (30%) C Depletion (other than oil & gas) See the Shareholder's
C Noncash contributions (50%) D Oil, gas, & geothermal ' gross income Instructions and the
Instructions for Form 6251
D Noncash contributions (30%) See the Shareholder's Instructions E Oil, gas, & geothermal ' deductions
E Capital gain property to a 50% F Other AMT items
organization (30%) 16 Items affecting shareholder basis
F Capital gain property (20%) A Tax-exempt interest income Form 1040, line 2a
G Contributions (100%) B Other tax-exempt income
H Investment interest expense Form 4952, line 1 C Nondeductible expenses See the Shareholder's
I Deductions ' royalty income Schedule E, line 19 D Distributions Instructions
J Section 59(e)(2) expenditures See the Shareholder's Instructions E Repayment of loans from shareholders
K Section 965(c) deduction See the Shareholder's Instructions 17 Other information
L Deductions ' portfolio (other) Schedule A, line 16 A Investment income Form 4952, line 4a
M Preproductive period expenses See the Shareholder's Instructions B Investment expenses Form 4952, line 5
N Commercial revitalization deduction from
rental real estate activities See Form 8582 instructions C Qualified rehabilitation expenditures See the Shareholder's Instructions
(other than rental real estate)
O Reforestation expense deduction See the Shareholder's Instructions See the Shareholder's Instructions
D Basis of energy property
P through R Reserved for future use
E Recapture of low-income housing credit
S Other deductions See the Shareholder's Instructions (section 42(j)(5)) Form 8611, line 8
13 Credits F Recapture of low-income housing credit
(other) Form 8611, line 8
A Low-income housing credit (section 42(j)(5)) G Recapture of investment credit See Form 4255
from pre-2008 buildings
B Low-income housing credit (other) from H Recapture of other credits See the Shareholder's Instructions
pre-2008 buildings
C Low-income housing credit (section 42(j)(5)) I Look-back interest ' completed long-term contracts See Form 8697
from post-2007 buildings
See the Shareholder's Instructions J Look-back interest ' income forecast method See Form 8866
D Low-income housing credit (other) from
post-2007 buildings K Dispositions of property with section 179 deductions
E Qualified rehabilitation expenditures (rental
L Recapture of section 179 deduction
real estate)
F Other rental real estate credits M through U
G Other rental credits V Section 199A income
H Undistributed capital gains credit Schedule 5 (Form 1040), line 74, box a W Section 199A W-2 wages
I Biofuel producer credit
X See the
Section 199A unadjusted basis Shareholder's
J Work opportunity credit Y Section 199A REIT dividends Instructions
K Disabled access credit
See the Shareholder's Instructions Z Section 199A PTP income
L Empowerment zone employment credit AA Excess taxable income
M Credit for increasing research activities AB Excess business interest income
N Credit for employer social security AC Other information
and Medicare taxes
Shareholder 2 : George Smith 123-45-6782

SPSA0412L 11/28/18
Schedule K-1 (Form 1120S) 2018 Supplemental Information Page 3
Box 16
Items Affecting Shareholder Basis
* Descriptive Information
C Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,500.
Shareholder 2 : George Smith 123-45-6782

SPSL1201L 05/26/18

A Passive
B
C
D
A B C D
Ordinary business income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .
Net rental real estate income (loss). . . . . . . . . . . . . . . . . . . . . . . .

Other net rental income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000.
Ordinary dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualified dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Royalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income
(Loss) Net short-term capital gain (loss). . . . . . . . . . . . . . . . . . . . . . . . . .
Net long-term capital gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .
Collectibles (28%) gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecaptured section 1250 gain. . . . . . . . . . . . . . . . . . . . . . . . . . .

Guaranteed payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net section 1231 gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 179 expense deduction. . . . . . . . . . . . . . . . . . . . . . . . . . .
Charitable contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000.

Deduc- Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
tions
Section 59(e)(2) expense: Intangible Drilling costs. . . . . . . . . . . . . .
Section 59(e)(2) expense: Dry Hole expense. . . . . . . . . . . . . . . . . .
Other section 59(e)(2) expenses . . . . . . . . . . . . . . . . . . . . . . . . . .

Other deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Low-income housing credit:
(1) Form section 42(j)(5) partnerships: before 2008. . . . . . . . . . .

(2) Other: before 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Form section 42(j)(5) partnerships: after 2007. . . . . . . . . . . .
(4) Other: after 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qual. rehabilitation expenditures related to rental real estate act. . . .
Other rental real estate credits . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other rental credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Biofuel producer credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Work opportunity credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credits Orphan drug credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit for increasing research. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disabled access credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Empowerment zone community employment. . . . . . . . . . . . . . . . . .

Credit for employer Soc. Sec. tax paid on certain employee tips . . . .
Indian employment credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Small employer pension plan startup costs credit. . . . . . . . . . . . . . .

Credit for employer-provided childcare. . . . . . . . . . . . . . . . . . . . . .
Alternative motor vehicle credit. . . . . . . . . . . . . . . . . . . . . . . . . . .
Other credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SPSL0312L 12/19/18
Shareholder 2
Page 2

A Passive
B
C
D
A B C D
Post-1986 depreciation adjustment. . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . . ...........

Alter-
native Depletion (other than oil and gas) . . . . . . . . . . . . . . ...........
Mini-
mum Oil, gas, and geothermal properties ' gross income. ...........
Tax
(AMT) Oil, gas, and geothermal properties ' deductions. . . ...........
Items
Accel. depreciation on real property placed in service before 1987. . .
Accel. depr. on leased personal prop. in service before 1987 . . . . . .
Other AMT items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax-
Exempt Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inc and
Nonde- Other tax-exempt income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ductible
Exp Nondeductible expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000.

Investment expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recapture of Low-Income housing credit ' 42(j)(5) partnerships. . . .
Other Recapture of Low-Income housing credit ' other . . . . . . . . . . . . . .
Infor-
mation Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
W-2 wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unadjusted basis . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 199A REIT dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . .
PTP income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
QBI allocable to qual. pmts. received from coop. . . . .
W-2 wages alloc. to qual. pmts. received from coop. .
Excess taxable income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess business interest income. . . . . . . . . . . . . . . . . . . . . . . . . .

Supplemental Information:
SPSL0312L 03/08/19
Shareholder 2
Form 1125-E Compensation of Officers
OMB No. 1545-0123
(Rev October 2016)
G Attach to Form 1120, 1120-C, 1120-F, 1120-REIT, 1120-RIC, or 1120S.
Internal Revenue Service G Information about Form 1125-E and its separate instructions is at www.irs.gov/form1125e.
Name Employer identification number

Note: Complete Form 1125-E only if total receipts are $500,000 or more. See instructions for definition of total receipts.
(b) Social security (c) Percent of Percent of stock owned (f) Amount of
1 (a) Name of officer time devoted
number to business (d) Common (e) Preferred compensation
John Parsons 0.00 % 70.00 % % 75,000.
George Smith 0.00 % 30.00 % % 75,000.
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
% % %
2 Total compensation of officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000.
3 Compensation of officers claimed on Form 1125-A or elsewhere on return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4Subtract 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000.
BAA For Paperwork Reduction Act Notice, see separate instructions. Form 1125-E (Rev 10-2016)
CPCA2101L 08/18/16
2018 Federal Statements Page 1
Statement 1
Form 1120S, Line 19
Other Deductions
......................................................................................................... $ 59,899.
Total $ 59,899.
Statement 2
Form 1120S, Schedule K, Line 12a
Charitable Contributions
Cash Contributions - 60% Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000.

Total $ 20,000.
Statement 3
Form 1120S, Schedule K, Line 16c
Nondeductible Expenses
Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000.
Total $ 15,000.
Statement 4
Form 1120S, Schedule K, Line 17d
Other Items and Amounts
Section 199A Qualified Business Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 639,574.

Section 199A W-2 Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 795,205.
Statement 5
Form 1120S, Schedule L, Line 6
Other Current Assets
Beginning Ending
Prepaid Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,333. $ 17,582.
Total $ 8,333. $ 17,582.
Statement 6
Form 1120S, Schedule M-1, Line 3
Expenses On Books Not On Schedule K
Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000.
Total $ 15,000.
2018 Federal Statements Page 2
Statement 7
Form 1120S, Schedule M-2, Column A, Line 3
Other Additions
Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000.

Total $ 100,000.
Statement 8
Form 1120S, Schedule M-2, Column A, Line 5
Other Reductions
Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000.
Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000.
Total $ 35,000.
Statement 9
Form 1125-A, Line 5
Other Costs
Direct Other Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 249,356.

Total $ 249,356.
7011
7011
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RAYCHAEL ROSS, CPA

1099 PALM DRIVE

Your 2018 Federal S Corporation Income Tax return will be electronically

Make check payable to State Comptroller and mail to:

TEXAS COMPTROLLER OF PUBLIC ACCOUNTS

Please call if you have any questions.

Total income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,673,259

Ordinary business income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 639,574

SCHEDULE K - ITEMS AFFECTING BASIS

SCHEDULE L - BALANCE SHEET

Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844,422

Total Liabilities and Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844,422

AMOUNT DUE AND PAYABLE

Computation of Ending Accumulated Depreciation

Beginning Balance of Accumulated Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,235.

Reconciliation of Retained Earnings

Beginning Retained Earnings, Sch. L, Line 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,148.

Schedule K, Line 17d

Compensation of Officers (Form 1120S, page 1, line 7). . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000.

S/H# Shareholder Name

Total on Shareholder Shareholder

Premium, Inc. 11-1111111

John Parsons 123-45-6781

1. STOCK BASIS AT BEGINNING OF TAX YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29. Property distributions (including cash). . . . 70,000.

32. DEBT BASIS AT BEGINNING OF TAX YEAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.

Premium, Inc. 11-1111111

George Smith 123-45-6782

1. STOCK BASIS AT BEGINNING OF TAX YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29. Property distributions (including cash). . . . 30,000.

32. DEBT BASIS AT BEGINNING OF TAX YEAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.

Officer Name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . John Parsons

Officer Name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . George Smith

Texas Franchise Tax

Net distributive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000.

Texas Franchise Tax

Texas Franchise Tax

John Parsons (Limited to $370K) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000.

Texas Franchise Tax

John Parsons (Limits applied to total comp). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370,000.

G Return completed Form 8879-S to ERO. (Don't send to IRS.)

Department of the Treasury

Premium, Inc. 11-1111111

Officer's PIN: check one box only

X I authorize Raychael Ross, CPA to enter my PIN 39670 as my signature

on the corporation's 2018 electronically filed income tax return.

Officer's signature G Date G Title G

Part III Certification and Authentication

ERO's signature G RAYCHAEL ROSS Date G

ERO Must Retain This Form ' See Instructions

Department of the Treasury

1/15/2011 TYPE 11-1111111

Premium, Inc. 11-1111111

Part I Information About the Corporation

7 Net short-term capital gain (loss)

Part II Information About the Shareholder

F Shareholder's percentage of stock

11 Section 179 deduction 16 Items affecting shareholder basis

*See attached statement for additional information.

Passive loss See the Shareholder's Instructions

Passive income Schedule E, line 28, column (h) 14 Foreign transactions

Nonpassive loss See the Shareholder's Instructions

5 a Ordinary dividends Form 1040, line 3b G General category