Maul, Inc., a calendar year S corporation, incurred the following items. Tax-exempt interest income ............. $ 7,000
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Tax-exempt interest income ............. $ 7,000
Sales ....................... 140,000
Depreciation recapture income ............ 12,000
Long-term capital gain ............... 20,000
§1231 gain .................. 7,000
Cost of goods sold ............... (42,000)
Administrative expenses .............. (15,000)
Depreciation expense (MACRS) .......... (17,000)
Charitable contributions .............. (7,000)
a. Calculate Maul’s nonseparately computed income or loss.
b. If Carlis a 40% shareholder of Maul, what is Carl’s share of Maul’s long-term capital gain?
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Related Book For
South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781285438290
18th Edition
Authors: James Smith, William Raabe, David Maloney, James Young
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