1. Olive Corporation was formed and began operations on January 1, 2018. The corpora- ted tion's income statement for the year and the balance sheet at year-end are presen below The Olive Corporation Income Statement for the Year Ended December 31, 2018 Gross income from operations Qualified dividends received from a 35 percent- $270,000 owned domestic corporation 20,000 $290,000 (110,000) $180,000 Total gross income Cost of goods sold Total income Other expenses: Compensation of officers Salaries and Bad debts (direct charge-offs) Repairs Depreciation for book and tax purposes Advertising Payroll taxes $77,000 30,000 9,000 3,000 10,000 2,000 16,000 wages (147,000) $ 33,000 Total other expenses Net income (before federal income tax expense) The Olive Corporation Balance Sheet as of December 31, 2018 Assets: $30,000 20,000 70,000 90,000 10,000) Cash Accounts receivable Inventory (at cost) Equipment Less: accumulated depreciation Total assets $200,000 Liabilities and owners'equity: Accounts payable Note payable (due in 10 years) Common stock Retained earnings $6,200 85,000 80,000 28,800 Total liabilities and owners' equity $200,000 The corporation made estimated tax payments of $5,000 and the corporation's book federal income tax expense is equal to the federal tax liability. Complete Form 1120 for Olive Corporation on Pages 11-39 through 11-44. 120n. Corporation Income Tax Retum18 T t For calendar year 2018 or tax Go to and the latest information TYPE PRINT ta Gross recelpts or sales. Retuns and allowances b Balance. Subtract lne 1b from line 1a e 2 ast 20, 2018 DO NOT FIL costofgoods solddattach Form, use Gross proft. Suibtract line 2 from line 5 Interest 6 Gross rents 7 Gross 8 Capital gain net income (aftach Schedule D Fo 1120 Net gain oroess) torn Form 4797 Part ILhetrine Fomin 9 Other income (see instructions-aftach statement 11 Total income. Add ines 3 through 10 12 Compensation of officers (see 13 Salaries and wages (less employment credits) 14 Repairs and maintenance.. 15 Bad debts 16 Rents 17 Taxes and licenses 18 Interest (see instructions) 19 Charitable contributions 20 Depreciation from Form 4562 not claimed on Form 1125-A or esewhere on neturn jatach Form 4562) 21 Depletion 22 Advertising 23 Pension, profit-sharing, etc. plans 24 Employee benefit programs 25 Reserved for future use 26 Other deductions (attach statement 27 Total deductions. Add lines 12 through 26 instruct ns-attach Form 1125 13 16 24 Taxable income before net operating loss deduction and special deductions Sutteact Ine 27 from Ine 11. 2 2a Net operating loss deduction (see instructions) b Special deductions (Schedule C, line 24, column (c Add lines 29a and 29b Taxable income. Subtract line 29c from ine 28. See instructions 31 Total tax (Schedule J, Part I, line 11) 32 32 2018 net 965 tax liability paid (Schedule J, Part I, line 12) 33 Total payments credits, and section 965 net tax liability (Schedule J, Part i, ine 23) 3 34 35 34 Estimated tax penalty. See instructions. Check if Form 2220 is attached Amount owed. Itf line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed 36 Overpayment. If ine 33 is larger than the total of lines 31, 32 and 34 enter amount overpaid Refunded | 37 Enter amount from Iine 35 you want Credited to 2019 estimated ta Here Signature of officer Paid Pr dpreers e Only Form 1120a0 Cat. No. 114500 Reduction Act Notice, see separate Form 1120 po18 Schedule C ssnsaie cDividends, Inclusions, and Special Deductions (see 50 -than-20%-owned domeste corporations Other than debt-financed stock) Dividends hom 20% stock) 65 r-more-owned dornestic 2 3 Dividends on certain dett-inanced stock of domestic and foreign 4 Dividends on certain prefered stock of less-than-20%-owned public uilities 5 Divdendson certain preferred stock of 20%-or-more-owned public usites Ausust 20, 2018 7 Dividends from oreign corporations and certain FSscs 8 Dividends from 9 Subtotal. Add ines 10 Dividends 100 100 100 100 company operating under the Small Business Investment Act of 1958 .. 11 Dividends from affiliated group members 12 Dividends from certain FSCs 13 Foreign-source portion of didends received tom a specified 10% wed foon 14 Dividends from foreign corporations not included on ine 3, 6, 7, 8, 11, 12, or 13 corporation (excluding hybrid dividends) (see instructions) Iincluding any hybrid dividends) 15 Section 968(a) inclusion 16a Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Forms) 5471) 100 b Subpart F inclusions derived from hybrid dividends o of tiered corporations (attach Formis) 5471) (see instructions e Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17 attach Forms) 5471) (see instructions) 7 Giobal Intangible Low-Taxed Income (GILTD (attach Forms) 5471 and Form 8992) 18 Gross-up for foreign taxes deemed paid 19 IC-DISC and former DISC dividends not included on line 1,2, or 3.. 20 Other dividends. 21 Deduction for dividends paid on certain preferred stock of public utlities 22 Soon 250 deduction (attach Form 89 23 Total dividends and inclusions. Add lines 9 through 20. Enter here and on 24 Totals lne 4 deductions. Add ines 9 through 22.column ic). Enter here and on pace 1, line 29b Fom 1120 per Tax Computation and Payment(see instructions 1120 (2018) Schedule J Page 3 are corporation is a member of a controlled group (attach Schedule O Form 1120).See instructons HTax C 2 Income tax. See instructions 3 Base erosion 4 Add lines 2 and 3 minimum tax (attach Form 8991) . Foreign tax credit (attach Form 1118) Credit from Form 8834 (see instructions) General business credit (attachForm380 dCredit for prior year minimum tax attach Form 8827 e Bond credits from Form 8912 6 Total credits. Add lines 5a through 5e 7 Subtract line 6 from line 4 8 Personal holding company tax (attach b Recapture of low-income housin Form 8611) Interest due under the look-back method-completed long-term contracts (attach Form 8697) d interest due under the look back method-incomtor (attach Form 8866) e Alternative tax on qualifying shipping actvties lattach Fom t Other (see instructions-attach statement).. 10 Total. Add lines 9a through 9f... 11 Total tax. Add lines 7,8, and 10. Enter here and on page 1, line 31 Part l-Section 965 Payments (see instructions) 12 2018 net 965 tax liability paid from Form 965-8, Part IL column 13. line 2 Enter here and on page 1. line 3212 Part ll-Payments, Refundable Credits, and Section 965 Net Tax Liability 13 2017 overpayment credited to 2018 ....-. 14 2018 estimated tax payments 15 2018 refund applied for on Form 4466- 16 Combine lines 13, 14, and 15 . 17 Tax deposited with Form 7004 8 Witholding (see instructions) 19 Total payments. Add lines 16, 17, and 18. . 20 Refundable credits from: 9f 10 13 15 16 18 19 a Form 2439.. b Form 4136 c Form 8827, line 8c d Other (lattach statement-see instructions) . 20c 20d Total credits. Add lines 20a through20ndamn ah 21 965 tax liability from Form 965-B, Part I, column (d, line 2. See instructions peyments, credits, and section 965 net tax liability. Add ines 19,21, and 22. Enter here and on 23 Form 1120(2018) 11-44 Chapter 11 The Corporate Income Tax of tax yoM 120 G018 Balance Sheets per Books 1 Cash 1 2a Trade notes and aocounts receivable b Less alowance for bad debts 3 Inventories 4 US Other ourent nssees (mach 7 Loans to 8 Mortgage and neal estate loans attach statement) Other inyestments ( 12 Land (net of any 1 13a Intangible assets 14 Other assets 15 Total assets 1 Liabilities and Shareholders' Equity 16 Accounts payable 17 Mortgages, notes, bonds peyable in less than 1 year 18 Other current liabilities (attach statemend 19 Loans from shareholders 0 Morgagens, notes, bonds payable in 1 yeer or moe 21 Other lablities (atach statement 22 Capital stock: aPreferred stock b Common stock 23 Adiditional paid-in capital 24 Retaned eamings-Appropriated (atach statement Adustments to shanesholders' equity latach statement a Less cost of treasury stock 27 Total abilities and sharehoiders' equity of Income (Loss) per Books With Income per Return Notec The corporation may be requined to tie Schedule M-3. See instructions 1 Net income foss) per books Income recorded on books this year not included on this retum (temizel Tax-exempt interest $ 7 2 Federal income tax per books 3 Excess of capital losses over capital gains 4 Iincome subject to tax not recorded on books this year (temiel 8 Deductions on this return not charged gainst book income this year (temizel; 5 Expenses recorded on books this year not deducted on this return (temize a Depreciation b Charitable contributions $ c Travel and entertainment. $ b Chartable contributions 9 Add lines 7 and 8 10 Income (page 1, line 28)-ine 6 less line 6 Add ines 1 through 5 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L] 1 Balance at beginning of year 5 Distributions: a Cash 2 Net income lossi per books. 3 Other increases (temizel b Stock c Property 6 Other decreases (emize); 7 Add lines 5 and 6 Balance at end of year Dire 4 less line 7 4 Add lines 1, 2, and 3 Form 1120 8 1. Olive Corporation was formed and began operations on January 1, 2018. The corpora- ted tion's income statement for the year and the balance sheet at year-end are presen below The Olive Corporation Income Statement for the Year Ended December 31, 2018 Gross income from operations Qualified dividends received from a 35 percent- $270,000 owned domestic corporation 20,000 $290,000 (110,000) $180,000 Total gross income Cost of goods sold Total income Other expenses: Compensation of officers Salaries and Bad debts (direct charge-offs) Repairs Depreciation for book and tax purposes Advertising Payroll taxes $77,000 30,000 9,000 3,000 10,000 2,000 16,000 wages (147,000) $ 33,000 Total other expenses Net income (before federal income tax expense) The Olive Corporation Balance Sheet as of December 31, 2018 Assets: $30,000 20,000 70,000 90,000 10,000) Cash Accounts receivable Inventory (at cost) Equipment Less: accumulated depreciation Total assets $200,000 Liabilities and owners'equity: Accounts payable Note payable (due in 10 years) Common stock Retained earnings $6,200 85,000 80,000 28,800 Total liabilities and owners' equity $200,000 The corporation made estimated tax payments of $5,000 and the corporation's book federal income tax expense is equal to the federal tax liability. Complete Form 1120 for Olive Corporation on Pages 11-39 through 11-44. 120n. Corporation Income Tax Retum18 T t For calendar year 2018 or tax Go to and the latest information TYPE PRINT ta Gross recelpts or sales. Retuns and allowances b Balance. Subtract lne 1b from line 1a e 2 ast 20, 2018 DO NOT FIL costofgoods solddattach Form, use Gross proft. Suibtract line 2 from line 5 Interest 6 Gross rents 7 Gross 8 Capital gain net income (aftach Schedule D Fo 1120 Net gain oroess) torn Form 4797 Part ILhetrine Fomin 9 Other income (see instructions-aftach statement 11 Total income. Add ines 3 through 10 12 Compensation of officers (see 13 Salaries and wages (less employment credits) 14 Repairs and maintenance.. 15 Bad debts 16 Rents 17 Taxes and licenses 18 Interest (see instructions) 19 Charitable contributions 20 Depreciation from Form 4562 not claimed on Form 1125-A or esewhere on neturn jatach Form 4562) 21 Depletion 22 Advertising 23 Pension, profit-sharing, etc. plans 24 Employee benefit programs 25 Reserved for future use 26 Other deductions (attach statement 27 Total deductions. Add lines 12 through 26 instruct ns-attach Form 1125 13 16 24 Taxable income before net operating loss deduction and special deductions Sutteact Ine 27 from Ine 11. 2 2a Net operating loss deduction (see instructions) b Special deductions (Schedule C, line 24, column (c Add lines 29a and 29b Taxable income. Subtract line 29c from ine 28. See instructions 31 Total tax (Schedule J, Part I, line 11) 32 32 2018 net 965 tax liability paid (Schedule J, Part I, line 12) 33 Total payments credits, and section 965 net tax liability (Schedule J, Part i, ine 23) 3 34 35 34 Estimated tax penalty. See instructions. Check if Form 2220 is attached Amount owed. Itf line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed 36 Overpayment. If ine 33 is larger than the total of lines 31, 32 and 34 enter amount overpaid Refunded | 37 Enter amount from Iine 35 you want Credited to 2019 estimated ta Here Signature of officer Paid Pr dpreers e Only Form 1120a0 Cat. No. 114500 Reduction Act Notice, see separate Form 1120 po18 Schedule C ssnsaie cDividends, Inclusions, and Special Deductions (see 50 -than-20%-owned domeste corporations Other than debt-financed stock) Dividends hom 20% stock) 65 r-more-owned dornestic 2 3 Dividends on certain dett-inanced stock of domestic and foreign 4 Dividends on certain prefered stock of less-than-20%-owned public uilities 5 Divdendson certain preferred stock of 20%-or-more-owned public usites Ausust 20, 2018 7 Dividends from oreign corporations and certain FSscs 8 Dividends from 9 Subtotal. Add ines 10 Dividends 100 100 100 100 company operating under the Small Business Investment Act of 1958 .. 11 Dividends from affiliated group members 12 Dividends from certain FSCs 13 Foreign-source portion of didends received tom a specified 10% wed foon 14 Dividends from foreign corporations not included on ine 3, 6, 7, 8, 11, 12, or 13 corporation (excluding hybrid dividends) (see instructions) Iincluding any hybrid dividends) 15 Section 968(a) inclusion 16a Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Forms) 5471) 100 b Subpart F inclusions derived from hybrid dividends o of tiered corporations (attach Formis) 5471) (see instructions e Other inclusions from CFCs under subpart F not included on line 15, 16a, 16b, or 17 attach Forms) 5471) (see instructions) 7 Giobal Intangible Low-Taxed Income (GILTD (attach Forms) 5471 and Form 8992) 18 Gross-up for foreign taxes deemed paid 19 IC-DISC and former DISC dividends not included on line 1,2, or 3.. 20 Other dividends. 21 Deduction for dividends paid on certain preferred stock of public utlities 22 Soon 250 deduction (attach Form 89 23 Total dividends and inclusions. Add lines 9 through 20. Enter here and on 24 Totals lne 4 deductions. Add ines 9 through 22.column ic). Enter here and on pace 1, line 29b Fom 1120 per Tax Computation and Payment(see instructions 1120 (2018) Schedule J Page 3 are corporation is a member of a controlled group (attach Schedule O Form 1120).See instructons HTax C 2 Income tax. See instructions 3 Base erosion 4 Add lines 2 and 3 minimum tax (attach Form 8991) . Foreign tax credit (attach Form 1118) Credit from Form 8834 (see instructions) General business credit (attachForm380 dCredit for prior year minimum tax attach Form 8827 e Bond credits from Form 8912 6 Total credits. Add lines 5a through 5e 7 Subtract line 6 from line 4 8 Personal holding company tax (attach b Recapture of low-income housin Form 8611) Interest due under the look-back method-completed long-term contracts (attach Form 8697) d interest due under the look back method-incomtor (attach Form 8866) e Alternative tax on qualifying shipping actvties lattach Fom t Other (see instructions-attach statement).. 10 Total. Add lines 9a through 9f... 11 Total tax. Add lines 7,8, and 10. Enter here and on page 1, line 31 Part l-Section 965 Payments (see instructions) 12 2018 net 965 tax liability paid from Form 965-8, Part IL column 13. line 2 Enter here and on page 1. line 3212 Part ll-Payments, Refundable Credits, and Section 965 Net Tax Liability 13 2017 overpayment credited to 2018 ....-. 14 2018 estimated tax payments 15 2018 refund applied for on Form 4466- 16 Combine lines 13, 14, and 15 . 17 Tax deposited with Form 7004 8 Witholding (see instructions) 19 Total payments. Add lines 16, 17, and 18. . 20 Refundable credits from: 9f 10 13 15 16 18 19 a Form 2439.. b Form 4136 c Form 8827, line 8c d Other (lattach statement-see instructions) . 20c 20d Total credits. Add lines 20a through20ndamn ah 21 965 tax liability from Form 965-B, Part I, column (d, line 2. See instructions peyments, credits, and section 965 net tax liability. Add ines 19,21, and 22. Enter here and on 23 Form 1120(2018) 11-44 Chapter 11 The Corporate Income Tax of tax yoM 120 G018 Balance Sheets per Books 1 Cash 1 2a Trade notes and aocounts receivable b Less alowance for bad debts 3 Inventories 4 US Other ourent nssees (mach 7 Loans to 8 Mortgage and neal estate loans attach statement) Other inyestments ( 12 Land (net of any 1 13a Intangible assets 14 Other assets 15 Total assets 1 Liabilities and Shareholders' Equity 16 Accounts payable 17 Mortgages, notes, bonds peyable in less than 1 year 18 Other current liabilities (attach statemend 19 Loans from shareholders 0 Morgagens, notes, bonds payable in 1 yeer or moe 21 Other lablities (atach statement 22 Capital stock: aPreferred stock b Common stock 23 Adiditional paid-in capital 24 Retaned eamings-Appropriated (atach statement Adustments to shanesholders' equity latach statement a Less cost of treasury stock 27 Total abilities and sharehoiders' equity of Income (Loss) per Books With Income per Return Notec The corporation may be requined to tie Schedule M-3. See instructions 1 Net income foss) per books Income recorded on books this year not included on this retum (temizel Tax-exempt interest $ 7 2 Federal income tax per books 3 Excess of capital losses over capital gains 4 Iincome subject to tax not recorded on books this year (temiel 8 Deductions on this return not charged gainst book income this year (temizel; 5 Expenses recorded on books this year not deducted on this return (temize a Depreciation b Charitable contributions $ c Travel and entertainment. $ b Chartable contributions 9 Add lines 7 and 8 10 Income (page 1, line 28)-ine 6 less line 6 Add ines 1 through 5 Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L] 1 Balance at beginning of year 5 Distributions: a Cash 2 Net income lossi per books. 3 Other increases (temizel b Stock c Property 6 Other decreases (emize); 7 Add lines 5 and 6 Balance at end of year Dire 4 less line 7 4 Add lines 1, 2, and 3 Form 1120 8