Olive Corporation was formed and began operations on January 1, 2018. Olive Corporation is an S corporation which is owned 50 percent by Linda Holiday and 50 percent by Ralph Winston. The corporation's income statement for the year and the balance sheet at year-end are presented below.

The Olive Corporation Income Statement for the Year Ended December 31, 2018
Gross income from operations			$270,000
Qualified dividends received from a 35 percent- owned domestic corporation			20,000
Total gross income			$290,000
Cost of goods sold			(110,000)
Total income			$180,000
Other expenses:
Compensation of officers	$77,000
Salaries and wages	30,000
Bad debts (direct charge-offs)	9,000
Repairs	3,000
Depreciation for book and tax purposes	10,000
Advertising	2,000
Payroll taxes	16,000
Total other expenses			(147,000)
Net income (before federal income tax expense)			$33,000
The Olive Corporation Balance Sheet as of December 31, 2018
Assets:
Cash	$30,000
Accounts receivable	20,000
Inventory (at cost)	70,000
Equipment	90,000
Less: accumulated depreciation	(10,000)
Total assets			$200,000
Liabilities and owners' equity:
Accounts payable	$2,000
Note payable (due in 10 years)	85,000
Common stock	80,000
Retained earnings	33,000
Total liabilities and owners' equity			$200,000

The corporation is not subject to any special taxes and no estimated tax payments are made.

Required: Prepare Form 1120S and Linda Holiday's K-1 form.

1. Enter all amounts as positive numbers, except for a "loss". If required, enter a "loss" as a negative number on the tax form.
2. If an amount box does not require an entry, or the answer is zero, enter "0".