Income/Deductions on Form 1120-S Question 4 of 10. Which of the following is true in regard to an S corporation's cost of goods sold? They are calculated and reported on Form 1120-S, page 1. It is calculated on Form 1125-A and reported on Form 1120-S, page 1. An S corporation has no requirement to calculate or report the cost of goods sold if the result is disadvantageous to the corporation. They are calculated and reported on Form 1125-A. Mark for follow up Question 5 of 10. Which of these items is reported on Form 1120-S, page 1? Gain (loss) from the sale of business assets