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. 

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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