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	$ 6,200
Note payable (due in 10 years)	85,000
Common stock	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.

Schedule J	Tax Computation and Payment (see instructions)
Part ITax Computation

1	Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120)). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2	Income tax. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				2
3	Base erosion minimum tax (attach Form 8991) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				3
4	Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				4
5a	Foreign tax credit (attach Form 1118) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5a
b	Credit from Form 8834 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5b
c	General business credit (attach Form 3800) . . . . . . . . . . . . . . . . . . . . . . . . . . .	5c
d	Credit for prior year minimum tax (attach Form 8827) . . . . . . . . . . . . . . . . . . .	5d
e	Bond credits from Form 8912 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5e
6	Total credits. Add lines 5a through 5e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				6
7	Subtract line 6 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				7
8	Personal holding company tax (attach Schedule PH (Form 1120)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				8
9a	Recapture of investment credit (attach Form 4255) . . . . . . . . . . . . . . . . . . . .	9a
b	Recapture of low-income housing credit (attach Form 8611) . . . . . . . . . . . . . .	9b
c	Interest due under the look-back methodcompleted long-term contracts (attach Form 8697) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9c
d	Interest due under the look-back methodincome forecast method (attach Form 8866) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9d
e	Alternative tax on qualifying shipping activities (attach Form 8902) . . . . . . . . .	9e
f	Other (see instructionsattach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . .	9f
10	Total. Add lines 9a through 9f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				10
11	Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . .				11
Part IISection 965 Payments (see instructions)
12	2018 net 965 tax liability paid from Form 965-B, Part II, column (k), line 2. Enter here and on page 1, line 32				12
Part IIIPayments, Refundable Credits, and Section 965 Net Tax Liability
13	2017 overpayment credited to 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				13
14	2018 estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				14
15	2018 refund applied for on Form 4466 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				15	(	)
16	Combine lines 13, 14, and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				16
17	Tax deposited with Form 7004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				17
18	Withholding (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				18
19	Total payments. Add lines 16, 17, and 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				19
20	Refundable credits from:
a	Form 2439 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	20a
b	Form 4136 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	20b
c	Form 8827, line 8c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	20c
d	Other (attach statementsee instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . .	20d
21	Total credits. Add lines 20a through 20d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				21
22	2018 net 965 tax liability from Form 965-B, Part I, column (d), line 2. See instructions . . . . . . . . . . . . . . . .				22
23	Total payments, credits, and section 965 net tax liability. Add lines 19, 21, and 22. Enter here and on page 1, line 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				23
Form 1120 (2018)