Comprehensive Problem 11-2 George Corporation is an S corporation started on January 1, 2020, with 50 shares owned by Trey Martin and 50 shares owned by Brianna Tabor. The corporation is located at 15620 McMullen Hwy SW, Cumberland, MD 21502 and has EIN 94-8888888. The corporation is not subject to any special taxes and no wages are included in cost of goods sold. The corporation's income statement for the year and the balance sheet at year-end are presented below. The George Corporation Income Statement for the Year Ended December 31, 2020 Gross income from operations $320,000 Qualified dividends received from a 15 percent-owned domestic corporation Total gross income Cost of goods sold Total income Other expenses: Compensation of officers $80,000 Salaries and wages 20,000 Bad debts (direct charge-offs) 9,000 Repairs 3,000 Depreciation for book (tax depreciation $90,000) 10,000 Advertising 3,000 20,000 340,000 (70,000) 270,000