Marley, Inc., a calendar year S corporation, has one shareholder, Charlie.

The S-Corp incurred the following items:

Sales	$620,000
Depreciation recapture income	13,000
Short-term capital gain	18,000
Cost of goods sold	410,000
Municipal bond interest income	5,000
Administrative expenses	15,000
Salary to Mickey	100,000
Depreciation expense, including $15,000 Section 179 expense	40,000
Charitable contributions	6,000

.

a. Show the calculation Marley's ordinary (non-separately computed) income. Be sure to label each item in your calculation.

b. List each item (description and amount) that Charlie will report on his tax return for the current year.

c. How much self-employment earnings will Charlie have on his Schedule SE of his 1040?

Answer rating: 100% (QA)

ANSWERA PARTICULARS AMOUNT SALES 620000 LESS EXPENSES COST OF GOOD SOLD 410000 ADMINISTRATIVE ... View the full answer