Olive Corporation was formed and began operations on January 1, 2012. The corporation's income statement for the
Question:
Olive Corporation was formed and began operations on January 1, 2012. 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 11-35 through 11-39. Do not complete Schedule G for ownership information, Form 4562 for depreciation, Form 1125-A for cost of goods sold, or Form 1125-E for compensation of officers. Schedule UTP is not required.
2. Assume that Olive Corporation, in Comprehensive Problem 1, is an S corporation owned 50 percent by Linda Holiday and 50 percent by Ralph Winston. The corporation is not subject to any special taxes. Using the relevant information given in Comprehensive Problem 1 and assuming the corporation's retained earnings are $35,000 instead of $31,850, accounts payable are $10,000 instead of $13,150, and no estimated tax payments are made, complete Form 1120S for Olive Corporation and Schedule K-1 for Linda on pages 11-41 through 11-46. Assume there were no cash distributions during the year. Do not complete Form 1125-A or Form 4562.
Step by Step Answer:
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill