The profit and loss statement of Strategy, Inc., an S corporation, shows net profits of $101,000 (book
Question:
The profit and loss statement of Strategy, Inc., an S corporation, shows net profits of $101,000 (book income). The corporation has three equal shareholders. From supplemental data, you obtain the following information about some items that are included in the $101,000.
Selling expenses ............(19,200)
Municipal bond interest income ...... 2,000
Dividends received on Boeing stock ... 8,000
§ 1231 gain .............. 6,000
Depreciation recapture income ..... 13,000
Passive income ........... 3,000
Short-term capital loss ........ (9,000)
Salary paid to owners (each) ......(11,000)
Cost of goods sold ............(81,000)
a. Determine the non separately computed income or loss.
b. What is the portion of ordinary income or loss for Zariat, one of the three shareholders?"
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781337386173
21st Edition
Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney