Assume that Aspen Corporation in Self-Study is owned by Janet Nall, who is a 100 percent shareholder. Also, assume that the corporation has a valid S corporation election in effect for 2018 and is not subject to any special taxes. Using the relevant information given in Self-Study assuming the corporation's retained earnings are $19,000, instead of $16,060, accounts payable are $24,000, rather than $26,940, and no estimated tax payments are made, complete Form 1120S for Aspen Corporation, and complete Schedule K-1 for Janet. Assume there were no cash distributions to Janet during the year. Form 1120S Department of the Treasury Internal Revenue Service For calendar year 2018 or tax year beginning A Selection effective date Name B Business activity code number (see instructions) Income Deductions (see instructions for limitations) Tax and Payments 234567 8g 10 H2 3456F8 19 20 4 C Check if Sch. M-3 attached G Is the corporation electing to be an S corporation beginning with this tax year? H Check it: (1) Final return (2) Name change (3) Address change I Enter the number of shareholders who were shareholders during any part of the tax year Caution: Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information. 389 U.S. Income Tax Return for an S Corporation Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation. Go to www.irs.gov/Form1120S for instructions and the latest information. 2018, ending 1a Gross receipts or sales. b Returns and allowances c Balance. Subtract line 1b from line 1a 11 TYPE OR PRINT 9 Repairs and maintenance. Bad debts Rents. 12 Taxes and licenses. 13 Interest (see instructions) 16 17 Number, street, and room or suite no. If a P.O. box, see instructions. City or town, state or province, country, and ZIP or foreign postal Cost of goods sold (attach Form 1125-A) Gross profit. Subtract line 2 from line 1c Net gain (loss) from Form 4797, line 17 (attach Form 4797) Other income (loss) (see instructions-attach statement) Total income (loss). Add lines 3 through 5 Compensation of officers (see instructions-attach Form 1125-E) Salaries and wages (less employment credits) c d Sign Here Advertising. Pension, profit-sharing, etc., plans 18 Employee benefit programs. Other deductions (attach statement) 14 Depreciation not claimed on Form 1125-A or elsewhere on return (attach Form 4562) 15 Depletion (Do not deduct oil and gas depletion.) Total deductions. Add lines 7 through 19 21 Ordinary business income (loss). Subtract line 20 from line 6 22 a Excess net passive income or LIFO recapture tax (see instructions). b Tax from Schedule D (Form 1120S). c Add lines 22a and 22b (see instructions for additional taxes) 23 a 2018 estimated tax payments and 2017 overpayment credited to 2018 23a Tax deposited with Form 7004. b 23b Credit for federal tax paid on fuels (attach Form 4136) Refundable credit from Form 8827, line 8c Signature of officer Print/Type preparer's name I 1a 1b Date Preparer's signature Paid Preparer Use Only Firm's name Firm's address For Paperwork Reduction Act Notice, see separate instructions. Yes No If "Yes," attach Form 2553 if not already filed (4) Amended return (5) Selection termination or revocation e Add lines 23a through 23d 24 25 Estimated tax penalty (see instructions). Check if Form 2220 is attached. Amount owed. If line 23e is smaller than the total of lines 22c and 24, enter amount owed Overpayment. If line 23e is larger than the total of lines 22c and 24, enter amount overpaid Enter amount from line 26: Credited to 2019 estimated tax 26 27 22a 22b 230 23d Refunded Under penalties of perjury, I declare that I have examined this retum, including accompanying schedules and statements, and to the correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. FIL Title Date 20 D Employer identification number Cat No. 11510H E Date incorporated F Total assets (see instructions) 10 2 3 4 5 6 7 8 9 10 OMB No. 1545-0123 2018 11 12 13 14 15 16 17 18 19 20 21 22c 23e 24 25 $1. 26 27 best of my knowledge and bellet, it is true, May the IRS discuss this return with the preparer shown below see instructions? Yes No Check if self-employed Firm's EIN Phone no. PTIN Form 1120S (2018) Form 1120S (2018) Schedule B Other Information 1 Check accounting method: a 2 3 4 6 (see instructions) Cash See the instructions and enter the: a Business activity 7 b Accrual Other (specify) b Product or service 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. 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 () through (v) below. Name of Corporation Employer Identification Number fany) () Country of Incorporation (i) Employer Identification Number (if any) (iv) Percentage of Stock Owned 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 () through (v) below () Name of Entity (ii) Type of Entity 5 a At the end of the tax year, did the corporation have any outstanding shares of restricted stock? If "Yes," complete lines (1) and (ii) below. (1) Total shares of restricted stock (iv) Country of Organization If "Yes," complete lines (i) and (ii) below. (1) Total shares of stock outstanding at the end of the tax year (ii) Total shares of stock outstanding if all instruments were executed (ii) Total shares of non-restricted stock b At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments? (v) Percentage in (v) is 100%, Enter the Date (if any) a Qualified Subchapter S Subsidiary Election Was Made (v) Maximum Percentage Owned in Profit, Loss, or Capital Has this corporation filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction?. Check this box if the corporation issued publicly offered debt instruments with original issue discount If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instrumente. 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) $ Did the corporation have an election under section 1630) for any real property trade or business or any farming business in effect during the tax year? See instructions. 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. Page 2 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 Yes No 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 1637). 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 If "Yes," the corporation is not required to complete Schedules L and M-1. Form 1120S (2018) Form 1120S (2018) Schedule B Other Information (see instructions) (continued) 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? If "Yes," enter the amount of principal reduction. During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If "Yes," see instructions. Did the corporation make any payments in 2018 that would require it to file Form(s) 1099?. b If "Yes," did the corporation file or will it file required Forms 1099? Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund? If "Yes," enter the amount from Form 8996, line 13 13 14a 15 Schedule K 1 2 Income (Loss) Deductions Credits Shareholders' Pro Rata Share Items Ordinary business income (loss) (page 1, line 21).. Net rental real estate income (loss) (attach Form 8825) 3a Other gross rental income (loss). b Expenses from other rental activities (attach statement) c Other net rental income (loss). Subtract line 3b from line 3a 4 Interest income 5 Dividends: a Ordinary dividends b Qualified dividends Foreign Transactions 67 Royalties Net short-term capital gain (loss) (attach Schedule D (Form 1120S)) 8a Net long-term capital gain (loss) (attach Schedule D (Form 1120S)) ENGE b Collectibles (28%) gain (loss). c Unrecaptured section 1250 gain (attach statement). 9 Net section 1231 gain (loss) (attach Form 4797) 10 Other income (loss) (see instructions) Type 11 Section 179 deduction (attach Form 4562). 7 12a Charitable contributions b Investment interest expense c Section 59(e)(2) expenditures (1) Type d Other deductions (see instructions) 13a b c d e f g 14a b c Low-income housing credit (section 42(X(5)) Low-income housing credit (other) i j Biofuel producer credit (attach Form 6478) Other credits (see instructions) Name of country or U.S. possession Gross income from all sources 26 Gross income sourced at shareholder level Foreign gross income sourced at corporate level d Section 951A category. e Foreign branch category f Passive category General category g h Other (attach statement) Type Other (attach statement) Type 3a 3b T Other information p Total foreign taxes (check one): Paid Accrued q Reduction in taxes available for credit (attach statement) r Other foreign tax information (attach statement) Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) Other rental real estate credits (see instructions) Type Other rental credits (see instructions) Type + 5b 8b 8c S OF 1 2 Deductions allocated and apportioned at shareholder level Interest expense.. Other. Deductions allocated and apportioned at corporate level to foreign source income Section 951A category. k I Foreign branch category m Passive category n General category o FIG 20. 8 (2) Amount 2-36-3 4 5a 7 9 10 11 12a 12b 12c(2) 12d 13a 13b 13c 13d 130 13f 13g 14b 14c 14d 14e 14f 14g 14h 141 14j 14k 141 14m 14n 140 14p 14q Yes No Total amount Page 3 Form 1120S (2018) Form 11205 (2018) Schedule K Alternative Minimum Tax (AMT) Items Items Affecting Shareholder Basis Other Information Recon- ciliation 5 6 Shareholders' Pro Rata Share Items (continued) 15a Post-1986 depreciation adjustment. b Adjusted gain or loss c Depletion (other than oil and gas) d Oil, gas, and geothermal properties-gross income e Oil, gas, and geothermal properties-deductions. f Other AMT items (attach statement) 16a Tax-exempt interest income Schedule L 216982 2 2 2 2 b Other tax-exempt income c Nondeductible expenses d Distributions (attach statement if required) (see instructions) e Repayment of loans from shareholders 17a Investment income 20 18 1 Cash 2a Trade notes and accounts receivable b Less allowance for bad debts. 3 Inventories 4 b Investment expenses c Dividend distributions paid from accumulated earnings and profits d Other items and amounte (attach statement) 7 Loans to shareholders. 8 Mortgage and real estate loans Income/loss reconciliation. Combine the amounts on lines 1 through 10 in the far right column. From the result, subtract the sum of the amounts on lines 11 through 12d and 14p Balance Sheets per Books Beginning of tax year Assets (b) 9 Other investments (attach statement) 10a Buildings and other depreciable assets. b Less accumulated depreciation 11a Depletable assets b Less accumulated depletion 12 Land (net of any amortization). 13a Intangible assets (amortizable only) b Less accumulated amortization Other assets (attach statement) 14 15 Total assets. 26 27 U.S. government obligations Tax-exempt securities (see instructions) Other current assets (attach statement). AHI AS O Accounts payable 17 Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement). Loans from shareholders. Liabilities and Shareholders' Equity 22 Capital stock. Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) 23 Additional paid-in capital 24 Retained earnings 25 Adjustments to shareholders' equity (attach statement) Less cost of treasury stock Total liabilities and shareholders' equity 15a 15b 15c 15d 15e (c) 20, 20 8 16d 160 Total amount 18 End of tax year (c) Page 4 Form 1120S (2018) Form 1120S (2018) Schedule M-1 1 2 3 Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note: The corporation may be required to file Schedule M-3 (see instructions) Net income (loss) per books. Income included on Schedule K, lines 1, 2, 3c, 4, 5a, 6, 7, 8, 9, and 10, not recorded on books this year (itemize) Expenses recorded on books this year not included on Schedule K, lines 1 through 12 and 14p (itemize): a Depreciation $ b Travel and entertainment $ 1 2 3 4 5 6 4 Add lines 1 through 3 Schedule M-2 5 Income recorded on books this year not included on Schedule K, lines 1 through 10 (temize a Tax-exempt interest $ 7 Add lines 5 and 6 8 Income (loss) (Schedule K, line 16). Line 4 less line 7 Analysis of Accumulated Adjustments Account, Shareholders' Undistributed Taxable Income Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments Account (see instructions) Balance at beginning Ordinary income from page 1, line 21 Other additions Loss from page 1, line 21 Other reductions. Combine lines 1 through 5. 7 Distributions other than dividend distributions Balance at end of tax year. Subtract line 7 from line 6 8 6 Deductions included on Schedule K, lines 1 through 12 and 14p, not charged against book income this year (temize): a Depreciation $ (b) Shareholders undistributed taxable income previously taxed (a) Accumulated adjustments account DO NOT tax year (c) Accumulated earnings and profits Page 5 (d) Other adjustments account Form 1120S (2018) Schedule K-1 (Form 1120S) Department of the Treasury Internal Revenue Service beginning /2018 Shareholder's Share of Income, Deductions, Credits, etc. Part I Information About the Corporation A Corporation's employer identification number For calendar year 2018, or tax year B Corporation's name, address, city, state, and ZIP code C IRS Center where corporation filed return 671117 Final K-1 Amended K-1 OMB No. 1545-0123 2018 Part III Shareholder's Share of Current Year Income, Deductions, Credits, and Other Items 1 Ordinary business income (loss) 13 Credits ending See back of form and separate instructions. For IRS Use Only F Shareholder's percentage of stock ownership for tax year. Part II Information About the Shareholder D Shareholder's identifying number E Shareholder's name, address, city, state, and ZIP code 7 Net short-term capital gain (loss) DO NOTZILE Ba Net long-term capital gain (loss) 8b Collectibles (28%) gain doss) 2 Net rental real estate income (loss) For Paperwork Reduction Act Notice, see the Instructions for Form 1120S. 3 Other net rental income (loss) 4 Interest income AS OF 5a Ordinary dividends Sb Qualified dividends Foreign transactions 20, 2018 6 Royalties 8c Unrecaptured section 1250 gain 9 10 11 12 Net section 1231 gain (oss) Other income (loss) Section 179 deduction Other deductions 15 Alternative minimum tax (AMT) items www.irs.gov/Form1120S 16 Items affecting shareholder basis 17 Other information *See attached statement for additional information. Cat. No. 11520D Schedule K-1 (Form 11205) 2018 Schedule K-1 (Form 1120S) 2018 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 or nonpassive and enter on your return as follows: Report on Passive loss Passive income Nonpassive loss Nonpassive income 2. Net rental real estate income (loss) Other net rental income (loss) 3. Net income Net loss 4. Interest income 5a. Ordinary dividends 5b. Qualified dividends 6. Royalties 7. Net short-term capital gain (loss) 8a. Net long-term capital gain (loss) 8b. Collectibles (28%) gain (loss) 8c. Unrecaptured section 1250 gain 9. Net section 1231 gain (loss) 10. Other income (loss) Code A Other portfolio income (loss) B Involuntary conversions C Sec. 1256 contracts & straddles D Mining exploration costs recapture E Section 951A income F Section 965(a) inclusion G Subpart Fincome other than sections 951A and 965 inclusion See the Shareholder's Instructions See the Shareholder's Instructions DOD See the Shareholder's Instructions See the Shareholder's Instructions Form 6781, line 1 See Pub. 535 H Other income foss) 11. Section 179 deduction 12. Other deductions A Cash contributions (60%) B Cash contributions (30%) C Noncash contributions (50%) D Noncash contributions (30%) E Capital gain property to a 50% organization (30%) F Capital gain property (20%) G Contributions (100%) H Investment interest expense I Deductions-royalty income J Section 59(X2) expenditures K Section 965(c) deduction L Deductions-portfolio (other) M Preproductive period expenses N Commercial revitalization deduction from rental real estate activities O Reforestation expense deduction P through R S Other deductions 13. Credits A Low-income housing credit (section 4205) from pre-2008 buildings B Low-income housing credit (other) from pre-2008 buildings C Low-income housing credit (section 42(5)) from post-2007 buildings D Low-income housing credit (other) from post-2007 buildings E Qualified rehabilitation expenditures (rental real estate) F Other rental real estate credits & Other rental credits J Work opportunity credit K Disabled access credit See the Shareholder's Instructions Schedule C, line 20, column (h) See the Shareholder's Instructions Schedule E, line 28, column() See the Shareholder's Instructions L Empowerment zone employment credit M Credit for increasing research activities Schedule E, line 28, column (h) See the Shareholder's Instructions Form 1040, line 2b Form 1040, line 3b Form 1040, line 3a Schedule E, line 4 Schedule D. line 5 Schedule D, line 12 28% Rate Gain Worksheet, line 4 (Schedule D instructions) N Credit for employer social security and Medicare taxes st 2 See the Shareholder's Instructions See the Shareholder's Instructions See the Shareholder's Instructions Form 4952, line 1 Schedule E, line 19 See the Shareholder's Instructions See the Shareholder's Instructions Schedule A, line 16 See the Shareholder's instructions H Undistributed capital gains credit Schedule 5 (Form 1040), line 74, box a I Biofuel producer credit See Form 8582 instructions See the Shareholder's Instructions Reserved for future use See the Shareholder's Instructions See the Shareholder's Instructions Code O Backup withholding P Other credits 14. Foreign transactions A Name of country or U.S. possession See the Shareholder's Instructions B Gross income from all sources C Gross income sourced at shareholder level Form 1116, Part 1 Foreign gross income sourced at corporate level D Section 951A category E Foreign branch category F Passive category G General category H Other Deductions allocated and a I Interest expense 20 2453 at shareholder level Form 1116, Part 1 J Other Form 1116, Part 1 Deductions allocated and apportioned at corporate level to foreign source income K Section 951A category L Foreign branch category M Passive category N General category o Other Other information P Total foreign taxes paid Q Total foreign taxes accrued R Reduction in taxes available for credit S Foreign trading groos rocopto T Extraterritorial income exclusion U Section 965 information V Other foreign transactions 15. Alternative minimum tax (AMT) items A Post-1980 depreciation adjustment B Adjusted gain or loss C Depletion (other than oil & gas) D OIL gas, & geothermal-gross income E Oil, gas, & geothermal-deductions F Other AMT items 16. Items affecting shareholder basis A Tax-exempt interest income B Other tax-exempt income C Nondeductible expenses D Distributions E Repayment of loans from shareholders 17. Other information A Investment income B Investment expenses C Qualified rehabilitation expenditures (other than rental real estate) D Basis of energy property E Recapture of low-income housing credit (section 42(5)) F Recapture of low-income housing credit (other) G Recapture of investment credit H Recapture of other credits I Look-back interest-completed long-term contracts J Look-back interest-income forecast method K Dispositions of property with section 179 deductions L Recapture of section 179 deduction M through U V Section 1994 income Report on See the Shareholder's instructions See the Shareholder's Instructions W Section 1994 W-2 wages X Section 199A unadjusted basis Y Section 199A REIT dividends z Section 199A PTP income AA Excess taxable income AR Excess business interest income AC Other information Form 1116, Part I Form 1116, Part 1 Form 1116, Part Form 1116, Part Form 1116, line 12 Form 8873 Form 8873 See the Shareholder's Instructions See the Shareholder's Instructions See the Shareholder's Instructions and the Instructions for Form 6251 Form 1040, line 2a See the Shareholder's Instructions Form 4952, line 4a Form 4952, line 5 See the Shareholder's Instructions See the Shareholder's Instructions Form 8611, line 8 Form 8611, line 8 See Form 4256 See the Shareholder's Instructions See Form 8697 See Form 8866 See the Shareholder's Instructions