George Corporation is an S corporation started on January 1, 2020, with 50 shares owned by Trey Martin and 50 shares owned by Brianna Tabor. The corporation is located at 15620 McMullen Hwy SW, Cumberland, MD 21502 and has EIN 94–8888888. The corporation is not subject to any special taxes and no wages are included in cost of goods sold. The corporation’s income statement for the year and the balance sheet at year-end are presented below.

Using this information, complete Form 1120–S for George Corporation and Schedule K–1for Brianna (who lives at 12 Bowery St., Frostburg, MD 21532 and has SSN 444-11–5555) on Pages 11–49 through 11–56. Assume there are no cash distributions during the year.

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Gross income from operations Qualified dividends received from a 15 percent- owned domestic corporation Total gross income Cost of goods sold Total income The George Corporation Income Statement for the Year Ended December 31, 2020 Other expenses: Compensation of officers Salaries and wages Bad debts (direct charge-offs) Repairs Depreciation for book (tax depreciation = $90,000) Advertising Payroll taxes Total other expenses Net income $ 80,000 20,000 9,000 3,000 10,000 3,000 15,000 $ 320,000 20,000 340,000 (70,000) 270,000 (140,000) $ 130,000