Olive Corporation was formed and began operations on January 1, 2018. The corporation's income statement for the year and the balance sheet at...

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 are presented below.

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".

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 are presented below.The Olive Corporation Income Statementfor the Year Ended December 31, 2018Gross income from operations$270,000Qualified dividends received from a 35percent-owned domestic corporation20,000Total gross income$290,000Cost of goods sold(110,000)Total income$180,000Other expenses:Compensation of officers$77,000Salaries and wages30,000Bad debts (direct charge-offs)9,000Repairs3,000Depreciation for book and tax purposes10,000Advertising2,000Payroll taxes16,000Total other expenses(147,000)Net income (before federal income tax expense)$33,000The Olive Corporation Balance Sheetas of December 31, 2018Assets:Cash$30,000Accounts receivable20,000Inventory (at cost)70,000Equipment90,000Less: accumulated depreciation(10,000)Total assets$200,000Liabilities and owners' equity:Accounts payable$ 6,200Note payable (due in 10 years)85,000Common stock80,000Retained earnings28,800Total liabilities and owners' equity$200,000