Eagle Corporation, an S corporation, reports the following items during 2022:

Calculate ordinary income (or loss) by completing page 1 of Form 1120-S, and complete Schedule K (Shareholders’ Shares of Income, Credits, Deductions, etc.). Leave spaces blank on Form 1120-S if information is not provided.

Data From  Form 1120-S

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Sales $500,000 Cost of goods sold 150,000 Dividends-all qualified 7,000 Interest income on certificate of deposit held as an investment 2,500 Tax-exempt interest income 1,200 Employees' salaries (other than officers) 90,000 Federal employment taxes 6,000 Rental expense 8,000 Officers' salaries (all shareholders) 40,000 Net long-term capital gain 8,000 Net short-term capital loss 10,000 Repairs 2,000 MACRS depreciation 12,000 Section 1231 losses 4,000 Charitable contributions. 2,000 Amortization of organizational expenditures 1,000 Research and experimentation credit 3,500 Cash distributions to shareholders 12,000