An S corporation's profit and loss statement shows net profits of $90,000(book income).
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2.
An S corporation's profit and loss statement shows net profits of $90,000(book income). The corporation has three equal shareholders. From supplemental data, you obtain the following information about some items that are included in the $90,000.
Selling expenses (21,200)
Municipal bond interest income 2,000
Dividends received on IBM stock 9,000
$ 1231 gain 6,000
$ 1245 gain 13,000
Recovery of bad debt 4000
Long term capital loss (9,000)
Salary paid to owners (each) (11,000)
Cost of goods Sold (97,000)
- Determine nonseparately computed income or loss.
- What would be the portion of taxable income or loss for Chang, one of the three shareholders?
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Solution Summary
An S corporation's profit and loss statement shows net profits of $90,000(book income). The corporation has three equal shareholders. From supplemental data, you obtain the following information about some items that are included in the $90,000.
Solution Preview
The separately stated items are:
Municiple interest income 2,000
Dividends 9,000
Sec 1231 gain 6,000
Long term capital loss ...
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