OMPREHENSIVE PROBLEMS 1 Olive Corpanation was formed and began operations on Jaeuary L.2012 The corpore tion's income statement for the year and the budlance shweet at year end are presented ted below The Olulse Corporation fncone Sittemes for the Year Ewted Decenbver 31, 2017 Gross income from operations Qualified dividends received from a 35 percent $ 270,000 owned domestic corporation Total gross income Cost of goods sold Total income Other exponses 180,000 Compensation of offioers Salanes and wages Bad debes idirect chacge -offe) Repaits Depreciation for book and lax purposes Advertising Payroll taxes 572,000 30,000 3,000 10.000 2000 Total other expenses Net income (belore federal income tax expense) The Clie Corporatie Builinge Shaee ls of Decewer 32 207 Assets Cash Accounts receivable Invertory lat cost) Equipment Less: accumulated depreciation s 30,000 20,000 70.000 90.000 5200,000 Total assets Liabilities and owners equitys Accocunts puyable Note payable (due in 10 years) Common stock Retained earnings 5 4,550 85,000 ,100 Total liabilities and owmers'equity The corp oration made estimated tax payments of $3,000 and the corporation's federal income tax expense is equal to the federal tas hability. Coenplete Foem 1120 e corporation s not subject to any special tases. Lising the relevant information gven in Compeben are made complete Form 1120S for Olive Corperation and Schedle K.1 for Linds on Olive Corporation on Pages 11-37 through 11-41 2 Assume that Olive Corporation, in Comprebensive Problem I, an S owned 50 percent by Linda Holiday and 50 percent by Ralph Winston The ave Problem 1 and assuming the ooxporation's retained earnings are s33aco 533450, accounts payable are $2.000 ireted of 51,550 and no edimated to las paymen Pages 11-43 through 11-48. Assue there were no cash distrbutions durieg the year OMPREHENSIVE PROBLEMS 1 Olive Corpanation was formed and began operations on Jaeuary L.2012 The corpore tion's income statement for the year and the budlance shweet at year end are presented ted below The Olulse Corporation fncone Sittemes for the Year Ewted Decenbver 31, 2017 Gross income from operations Qualified dividends received from a 35 percent $ 270,000 owned domestic corporation Total gross income Cost of goods sold Total income Other exponses 180,000 Compensation of offioers Salanes and wages Bad debes idirect chacge -offe) Repaits Depreciation for book and lax purposes Advertising Payroll taxes 572,000 30,000 3,000 10.000 2000 Total other expenses Net income (belore federal income tax expense) The Clie Corporatie Builinge Shaee ls of Decewer 32 207 Assets Cash Accounts receivable Invertory lat cost) Equipment Less: accumulated depreciation s 30,000 20,000 70.000 90.000 5200,000 Total assets Liabilities and owners equitys Accocunts puyable Note payable (due in 10 years) Common stock Retained earnings 5 4,550 85,000 ,100 Total liabilities and owmers'equity The corp oration made estimated tax payments of $3,000 and the corporation's federal income tax expense is equal to the federal tas hability. Coenplete Foem 1120 e corporation s not subject to any special tases. Lising the relevant information gven in Compeben are made complete Form 1120S for Olive Corperation and Schedle K.1 for Linds on Olive Corporation on Pages 11-37 through 11-41 2 Assume that Olive Corporation, in Comprebensive Problem I, an S owned 50 percent by Linda Holiday and 50 percent by Ralph Winston The ave Problem 1 and assuming the ooxporation's retained earnings are s33aco 533450, accounts payable are $2.000 ireted of 51,550 and no edimated to las paymen Pages 11-43 through 11-48. Assue there were no cash distrbutions durieg the year