Problem 22 24 (Algorithmic) (LO 5, 6) The profit and loss statement of Kitsch Ltd , an S corporation, shows $125,000 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 ($25,000) Tax exempt interest income 3,750 Dividends received 11,250 1231 gain 8,750 Depreciation recapture income 12,500 Net income from passive real estate rentals 6,250 Long term capital loss (7,500) Salary paid to owners (each) (15,000) Cost of goods sold (112,500) a The entity's nonseparately stated computed is $ b The portion of nonseparately stated income or loss for James Billings, one of the the Kitsch shareholders, is $ c What is James Billings share of tax exempt interest income, if any Round your answer to the nearest value $ Is the income taxable to him this year (TAXABLE NONTAXABLE)

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Question: Problem 22-24 (Algorithmic) (LO. 5, 6) The profit and loss statement of Kitsch Ltd., an S corporation, shows $125,000 book income. Kitsch is owned equally

Problem 22-24 (Algorithmic) (LO. 5, 6)

The profit and loss statement of Kitsch Ltd., an S corporation, shows $125,000 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	($25,000)
Tax-exempt interest income	3,750
Dividends received	11,250
1231 gain	8,750
Depreciation recapture income	12,500
Net income from passive real estate rentals	6,250
Long-term capital loss	(7,500)
Salary paid to owners (each)	(15,000)
Cost of goods sold	(112,500)

a. The entity's nonseparately stated computed is $_______________.

b. The portion of nonseparately stated income or loss for James Billings, one of the the Kitsch shareholders, is $_______________.

c. What is James Billings share of tax-exempt interest income, if any? Round your answer to the nearest value. $____________________

Is the income taxable to him this year? _______________(TAXABLE/NONTAXABLE)

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