Problem 15-59 (LO 15-7)

Determine the amount of taxable income and separately stated items in each case, assuming the corporation is a Subchapter S corporation.

1. Book income of $66,000 including capital gains of $4,400, a charitable contribution of $1,600, and meals expenses of $5,500.
2. Book income of $108,000 including capital losses of $9,500, a charitable contribution of $20,000, and meals expenses of $2,500.
3. Book income of $84,000 including municipal bond interest of $1,750, a charitable contribution of $5,600, and dividends of $4,200 from a 10% owned domestic corporation. The corporation also has an $7,500 charitable contribution carryover.
4. Book income of $145,000 including municipal bond interest of $1,950, a charitable contribution of $4,250, and dividends of $7,100 from a 70% owned domestic corporation. The corporation has a capital loss carryover of $5,250 and a capital gain of $2,500 in the current year.