Olive Corporation was formed and began operations on January 1, 2014. The corporations income statement for the
Question:
Olive Corporation was formed and began operations on January 1, 2014. 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 $4,000 and the corporation’s federal income tax expense is equal to the federal tax liability. Complete Form 1120 for Olive Corporation on Pages 11-37 through 11-41.
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The Olive Corporation Income Statement for the Year Ended December 31, 2014 S 260,000 Gross income from operations Qualified dividends received from a 10 percent- 20,000 S 280,000 (105,000) S175,000 owned domestic corporation Total gross income Cost of goods sold Total income Other expenses Compensation of officers Salaries and wages Bad debts (direct charge-offs) Repairs Depreciation Ad $75,000 30,000 7,000 3,000 10,000 5,000 10,000 vertising Payroll taxes Total other expenses (140,000) S 35,000 Net income (before federal income tax expense) The Olive Corpoation Balance Sheet as of December 31, 2014 Assets Cash Accounts receivable Inventory (at cost) Equipment Less: accumulated depreciation S 30,000 20,000 80,000 90,000 (10,000) Total assets $210,000 Liabilities and owners' equitv: Accounts payable Note payable (due in 10 years) Common stock Retained earnings S 13,150 85,000 80,000 31,850 Total liabilities and owners' equity $210,000
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Form 1120 on page 235 through 239 Comprehensive Problem 1 1120 Form Department of the Treasury Internal Revenue Service A Check it 1a Consolidated retum For 851 bLemone con dadur 2 Personal holding o ...View the full answer
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Related Book For
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
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