Olive Corporation was formed and began operations on January 1, 2018. 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 $5,000 and the corporation’s book federal income tax expense is equal to the federal tax liability. Complete Form 1120 for Olive Corporation on Pages 11-39 through 11-44.

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The Olive Corporation Income Statement for the Year Ended December 31, 2018 $ 270,000 Gross income from operations Qualified dividends received from a 35 percent- 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 for book and tax purposes Advertising Payroll taxes Total other expenses Net income (before federal income tax expense) 20,000 $ 290,000 (110,000) $ 180,000 $77,000 30,000 9,000 3,000 10,000 2,000 16,000 (147,000) $ 33,000 The Olive Corporation Balance Sheet as of December 31, 2018 Assets: Cash $ 30,000 Accounts receivable 20,000 70,000 Inventory (at cost) Equipment Less: accumulated depreciation 90,000 (10,000) Total assets $200,000 Liabilities and owners' equity: Accounts payable Note payable (due in 10 years) Common stock Retained earnings Total liabilities and owners' equity $ 6,200 85,000 80,000 28,800 $200,000