Problem 15-14 (Algorithmic) (LO. 4)

The profit and loss statement of Kitsch Ltd., an S corporation, shows $135,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income.

Selling expenses ($27,000)

Tax-exempt interest income 4,050

Dividends received 12,150

1231 gain 9,450

Depreciation recapture income 13,500

Net income from passive real estate rentals 6,750

Long-term capital loss (8,100)

Salary paid to owners (each) (16,200)

Cost of goods sold (121,500)

a.Compute Kitsch's nonseparately stated income or loss for the tax year.

The entity's nonseparately stated computed______ is $______________________________.

b.What would be the share of this year's nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders?

$__________________