Question: Problem 15-14 (Algorithmic) (LO. 4) The profit and loss statement of Kitsch Ltd., an s corporation, shows $220,000 book income. Kitsch is owned equally by

Problem 15-14 (Algorithmic) (LO. 4) The profit and loss statement of Kitsch Ltd., an s corporation, shows $220,000 book income. Kitsch is owned

Problem 15-14 (Algorithmic) (LO. 4) The profit and loss statement of Kitsch Ltd., an s corporation, shows $220,000 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 ($44,000) Tax-exempt interest income 6,600 Dividends received 19,800 1231 gain 15,400 Depreciation recapture income 22,000 Net income from passive real estate rentals 11,000 (13,200) Long-term capital loss Salary paid to owners (each) (26,400) (198,000) Cost of goods sold 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? 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? c. What is James Billings' share of tax-exempt interest income, if any? Round your answer to the nearest dollar. Is the income taxable to him this year

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