puyus , and 3 Instructions Porm licu, pages, and Updates are ready to be Comprehensive Problem 11-1 Olive Corporation was formed and began operations on January 1, 2018. The corporation's income statement for the year and the balance sheet at year end presented below. The Olive Corporation Income Statement for the Year Ended December 31, 2018 Gross income from operations Qualified dividends received from a 35 percent-owned domestic corporation Total gross income $270,000 20,000 $290,000 (110,000) $180,000 Cost of goods sold Total income Other expenses: Compensation of officers Salaries and wages Bad debts (direct charge-offs) Repairs $77,000 30,000 9,000 3,000 10,000 2,000 16,000 Depreciation for book and tax purposes Advertising Payroll taxes Total other expenses Net Income (before federal income tax expense) (147,000) $33,000 (147,000) $33,000 Calculator Print Item Payroll taxes 16,000 Total other expenses Net income (before federal income tax expense) 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 Note payable (due in 10 years) Common stock $ 6,200 85,000 80,000 Retained earnings 28,800 Total liabilities and owners' equity $200,000 The corporation made estimated tax payments of $5,000 and the corporation's book federal income tax expense is equal to the federal tax liability. Assume any overpayment is credited to the 2019 estimated tax. Required: Prepare Form 1120. 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". puyus , and 3 Instructions Porm licu, pages, and Updates are ready to be Comprehensive Problem 11-1 Olive Corporation was formed and began operations on January 1, 2018. The corporation's income statement for the year and the balance sheet at year end presented below. The Olive Corporation Income Statement for the Year Ended December 31, 2018 Gross income from operations Qualified dividends received from a 35 percent-owned domestic corporation Total gross income $270,000 20,000 $290,000 (110,000) $180,000 Cost of goods sold Total income Other expenses: Compensation of officers Salaries and wages Bad debts (direct charge-offs) Repairs $77,000 30,000 9,000 3,000 10,000 2,000 16,000 Depreciation for book and tax purposes Advertising Payroll taxes Total other expenses Net Income (before federal income tax expense) (147,000) $33,000 (147,000) $33,000 Calculator Print Item Payroll taxes 16,000 Total other expenses Net income (before federal income tax expense) 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 Note payable (due in 10 years) Common stock $ 6,200 85,000 80,000 Retained earnings 28,800 Total liabilities and owners' equity $200,000 The corporation made estimated tax payments of $5,000 and the corporation's book federal income tax expense is equal to the federal tax liability. Assume any overpayment is credited to the 2019 estimated tax. Required: Prepare Form 1120. 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
