LO.8 During 2012, Thrasher (a calendar year, accrual basis S corporation) has the following transactions:

Sales $1,500,000 Cost of goods sold 900,000 Long-term capital gain 10,000 Short-term capital gain 5,000 Salaries 210,000 Qualified dividends from stock investments 30,000 Rent expense 170,000 Advertising expense 20,000 Interest on City of Trenton bonds 15,000

§ 1231 gain 25,000 Organizational expenditures 3,000 Charitable contributions 5,000 Bad debt (trade account receivable deemed to be uncollectible) 10,000 Cash dividend distributed to shareholders 120,000

a. Determine Thrasher Corporation’s separately stated items for 2012.

b. Determine Thrasher’s taxable income for 2012.