Assume that Olive Corporation, in Comprehensive Problem 1, is an S corporation owned 50 percent by Linda
Question:
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 $33,000 instead of $28,800, accounts payable are $2,000 instead of $6,200, and no estimated tax payments are made, complete Form 1120S for Olive Corporation and Schedule K-1 for Linda on Pages 11-45 through 11-52. Assume there were no cash distributions during the year.
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Transcribed Image Text:
U.S. Corporation Income Tax Return OMB No. 1545-0123 Form 1120 For calendar year 2018 or tax year beginning ,2018, ending 20 2018 Department of the Treasury Internal Revenue Service A Check it: 1a Consolidated retum (attach Form 851) b Life/nonlife consoli- dated return. Go to www.irs.gov/Form1120 for instructions and the latest information. Name B Employer identification number ΤΥPE Number, street, and room or suite no. If a P.O. box, see instructions. C Date incorporated OR ERAFTAS OF ugast 20, 2018 NOT FILI 2 Personal holding co. (attach Sch. PH). 3 Personal service corp. (see instructions). 4 Schedule M-3 attached 1a Gross receipts or sales . PRINT City or town, state, or province, country, and ZIP or foreign postal code D Total assets (see instructions) %24 (4) E Check if: (1) Address change Initial return (2) Final retum (3) Name change 1a b Retums and allowances. 1b Balance. Subtract line 1b from line 1a Cost of goods sold (attach Form 1125-A). Gross profit. Subtract line 2 from line 1c. Dividends and inclusions (Schedule C, line 23, column (a) 4 Interest Gross rents 6. Gross royalties Capital gain net income (attach Schedule D (Form 1120) 8. Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (see instructions-attach statement). 10 10 Total income. Add lines 3 through 10 11 11 Compensation of officers (see instructions-attach Form 1125-E) Salaries and wages (less employment credits) Repairs and maintenance Bad debts. 12 12 13 13 14 14 15 15 Rents. 16 16 Taxes and licenses 17 17 Interest (see instructions) 18 18 Charitable contributions. Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on retum (attach Form 4562) 8 21 Advertising 19 19 20 20 Depletion 21 22 22 23 Pension, profit-sharing, etc., plans Employee benefit programs 23 24 24 Reserved for future use. 25 25 Other deductions (attach statement) Total deductions. Add lines 12 through 26. Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 26 26 27 27 28 28 29a 29a Net operating loss deduction (see instructions) b Special deductions (Schedule C, line 24, column (c) C Add lines 29a and 29b 29b 29c Deductions (See instructions for limitations on deductions.) Income Taxable income. Subtract line 29c from line 28. See instructions 30 Total tax (Schedule J, Part I, line 11) 31 30 31 32 33 32 2018 net 965 tax liability paid (Schedule J, Part II, line 12) . 33 Total payments, credits, and section 965 net tax liability (Schedule J, Part II, line 23) 34 Estimated tax penalty. See instructions. Check if Form 2220 is attached 35 Amount owed. If line 33 is smaller than the total of lines 31, 32, and 34, enter amount owed 36 Overpayment. If line 33 is larger than the total of lines 31, 32, and 34, enter amount overpaid Enter amount from line 36 you want: Credited to 2019 estimated tax 37 O 34 35 36 Refunded 37 Under penalties of perjury. I declare that I have examined this retum, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct. Sign and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here May the IRS discuss this return with the preparer shown below? See instructions. OYes Signature of officer Print/Type preparer's name Date Title No Preparer's signature PTIN Check O if Date Paid Preparer Use Only For Paperwork Reduction Act Notice, see separate instructions. self-employed Firm's name Firm's EIN Firm's address Phone no. Cat. No. 11450Q Form 1120 (2018) Tax, Refundable Credits, and Payments
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (15 reviews)
1120S Department of the Treasury Internal Revenue Service For calendar year 2018 or tax year beginning Name A S election effective date 010118 B Business activity code number see instructions OR Form ...View the full answer
Answered By
MOHAMMED SAMEER
I always believe that giving proof to a problem even if it is not asked is something intuitive, there is always something to learn from proofs. I worked as a tutor for a year and giving intuitively appealing answers is what I always try to provide to student.
0.00
0 Reviews
10+ Question Solved
Related Book For
Income Tax Fundamentals 2019
ISBN: 9781337703062
37th Edition
Authors: Gerald E. Whittenburg, Steven Gill
Question Posted:
Students also viewed these Business questions
-
Assume that Wrigley Juice is an S corporation owned equally by Henry, Iris, and Jasmine. Prepare a memo explaining the effect of Wrigleys results on Henrys, Iriss, and Jasmines tax returns. Wrigley...
-
Natural Salt is one of the 350 price-taker firms in Country X producing and selling salt. The market price of salt is $16 per bag and Natural Salt has a fixed production cost of $13,000. The firm's...
-
What is the correct answer (with the appropriate number of significant figures) for the calculation of 7.5+ 2.26 + 1.311+ 2? 13 13.071 10 13.0
-
Enviro-Tech has only two retail and two wholesale customers. Information relating to each customer for 2012 follows (in thousands): Enviro-Tech's annual distribution-channel costs are $33 million for...
-
During the month of September, the Texas Go-Kart Company had the following business activities: a. On September 1, paid rent on the track facility for six months at a total cost of $12,000. b. On...
-
The graph of f(x) = sinh x is shown in Figure 6.92. Use calculus to find the intervals of increase and decrease for f, and find the intervals on which f is concave up and concave down to confirm that...
-
Distinguish between qualitative and quantitative forecasting techniques. What are the advantages and disadvantages associated with each approach?
-
Assume that a firm in a perfectly competitive industry has the following total cost schedule: OUTPUT (UNITS) TOTAL COST ($) 10 ............. $110 15 .............. 150 20 .............. 180 25...
-
CX Enterprises has the following expected dividends: $1.05 in one year, $1.15 in two years, and $1.33 in three years. After that, its dividends are expected to grow at 3.9% per year forever (so that...
-
Radium 224 88 Ra has a half-life of about 3.6 days. (a) Given 1 gram, how much will still be present after 1 day? (b) After 1 year?
-
Ulmus Corporation is an engineering consulting firm and has $1,120,000 in taxable income for 2018. Calculate the corporations income tax liability for 2018.
-
For its current tax year, Ilex Corporation has ordinary income of $260,000, a short-term capital loss of $60,000, and a long-term capital gain of $20,000. Calculate Ilex Corporations tax liability...
-
Which modifications have to be made, if the principal is not normalized?
-
6. An object is rotating about a fixed axis with a constant angular speed of wo= rad/s. At t = 0s, the object is at 0o = - rad. a) What is the angular position of the object at t = 1s? b) What is the...
-
2. The following graph models Ella's movement as she jumps up and down on a pogo stick. The independent variable is time, in seconds, and the dependent variable is height, in centimetres. 10 2 M B 10...
-
The period of oscillation of a spring-and-mass system is 0.550 s and the amplitude is 5.49 cm. What is the magnitude of the acceleration at the point of maximum extension of the spring? m/s
-
1) In the picture below, a standing wave is formed on an oscillating string. -Which harmonic is this/in the picture? -Assume the string in the picture is 2m long, what is the wavelength of this wave?...
-
A firm is planning to take a project that if funded entirely with equity has net after tax cash flows as indicated in the table below. Year Cash flow 0 -13000000 1 1500000 2 1500000 3 1500000 4...
-
Comment critically on the following statements that you have overheard: (a) Direct labour hours are the most appropriate basis to use to charge indirect cost (overheads) to jobs in the modern...
-
Uniform electric field in Figure a uniform electric field is directed out of the page within a circular region of radius R = 3.00 cm. The magnitude of the electric field is given by E = (4.50 x 10-3...
-
Jay contributes property with a fair market value of $16,000 and an adjusted basis of $5,000 to a partnership in exchange for an 8 percent partnership interest. a. Calculate the amount of gain...
-
a. Loren is a secretary in a lawyers office. Since he often deals with legal matters, Loren feels that a law degree will be beneficial to him. May Loren deduct his educational expenses for law...
-
Marty is a sales consultant. Marty incurs the following expenses related to the entertainment of his clients in 2018: a. How much is Martys deduction for entertainment expenses for 2018? $ __________...
-
A portfolio has a standard deviation of 25%. The correlation of the portfolio and the market is 1. If the risk-free rate is 3.2%, the expected return on the market portfolio is 11%, and the standard...
-
(6 pts.) The following gas phase reaction system is conducted in an isothermal constant volume batch reactor. The reactor is charged with pure A with an initial concentration CAO AB ri = k CA B D r2...
-
Based on the NPV and IRR investment criteria, should your company introduce a new candy flavor? 1) Should the cost of a marketing survey be included in your decision? Why or why not? 2) Calculate the...
Study smarter with the SolutionInn App