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A calendar-year S Corp has the following information for the current taxable year: Sales 350,000 Cost of Goods Sold 120,000 Long-term Capital Gain 12,000 Distribution
A calendar-year S Corp has the following information for the current taxable year:
Sales | 350,000 |
Cost of Goods Sold | 120,000 |
Long-term Capital Gain | 12,000 |
Distribution to Owners | 50,000 |
Salary to Z | 35,000 |
Charitable Contribution | 8,000 |
Operating Expenses | 40,000 |
Interest Income | 15,000 |
Z is a 40% owner with a $100,000 basis in her stock at the beginning of the tax year. No corporate debt is owed to her. Z materially participates in the operations of S Corp. Z also has a $55,000 salary from another job.
A. Calculate the S corps ordinary income or loss for the year.
B. Calculate the S corps separately stated items.
C. Calculate Zs adjusted gross income.
D. Calculate Zs basis in her S stock at the end of the year.
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