For this particular assignment, I need the answer for the problem N2 not the pro

Question

For this particular assignment, I need the answer for the problem N2 not the problem N1

Olive Corporation was formed and began operations on January 1, 2014. 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 11-37 through 11-41.

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 form1120S for Olive Corporation and Schedule K- for Linda on pages 11-43 through 11-48. Assume there were no cash distributions during the year.   

Explanation / Answer

Form 1120 Gross Reciepts or Sales 260000 Less:Cost of Goods Sold -105000 Gross Profit 155000 Add: Dividends 20000 Total Income 175000 Compensation to Officers 75000 Salary and Wages 30000 Bad Debts 7000 Repairs 3000 Depreciation 10000 Advertising 5000 Payroll Taxes 10000 Dividend Deductions Schedule C 14000 Total Deductions 154000 Taxable Income 21000 Tax Payable(Schedule J) 3150 Tax Payments 4000 Overpayment -850 Schedule C Dividend Received % Special Deductions Dividends from less than 20% owned Domestic Corporations 20000 70% 14000 Schedule J Tax Rate Upto $50000 @15% 21000 Tax 3150 Form 1120S Gross Reciepts or Sales 260000 Less:Cost of Goods Sold -105000 Gross Profit 155000 Total Income 155000 Compensation to Officers 75000 Salary and Wages 30000 Bad Debts 7000 Repairs 3000 Depreciation 10000 Advertising 5000 Payroll Taxes 10000 Total Deductions 140000 Taxable Income 15000 Tax as per Schedule D 2250 Amount Owed 2250 Schedule B Tax Rate Upto $50000 @15% 15000 Tax 2250 Schedule K Lindas Share(50%) Ordinary Business Income 15000 7500 Divdend Income 20000 10000 Income /Loss Reconciliation 35000 17500

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