Olive Corporation was formed and began operations on January 1, 2017. The corporations income statement for the year and the balance sheet at year-end are presented below.

The corporation made estimated tax payments of $3,000 and the corporations federal income tax expense is equal to the federal tax liability. Complete Form 1120 for Olive Corporation.

$ 270,000 Gross income from operations Qualified dividends received from a 35 percent- 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 wages 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 Total other expenses Net income (before federal income tax expense) (147,000) $$33,000 The Olive Corporation Balance Sheet as of December 31, 2017 Assets Cash Accounts receivable Inventory (at cost) $30,000 20,000 70,000 90,000 (10,000 quipment Less: accumulated depreciation Total assets $200,000 Liabilities and owners' equity: Accounts payable Note payable (due in 10 years) Common stock Retained earnin $4,550 85,000 80,000 30,450 gs Total liabilities and owners' equity $200,000 $ 270,000 Gross income from operations Qualified dividends received from a 35 percent- owned domestic corporation 20,000 $ 290,000 (110,000) 180,000 Total gross income Cost of goods sold Total income Other expenses Compensation of officers Salaries and wages Bad debts (direct charge-offs) Repairs Depreciation for book and tax purposes Advertising Payroll taxes $77,000 30,000 9,000 3,000 10,000 2,000 16,000 Total other expenses Net income (before federal income tax expense) (147,000) $$33,000 The Olive Corporation Balance Sheet as of December 31, 2017 Assets Cash Accounts receivable Inventory (at cost) $30,000 20,000 70,000 90,000 (10,000 quipment Less: accumulated depreciation Total assets $200,000 Liabilities and owners' equity: Accounts payable Note payable (due in 10 years) Common stock Retained earnin $4,550 85,000 80,000 30,450 gs Total liabilities and owners' equity $200,000