Bakers Inc. (an S corporation) is a retailer of gourmet snacks. The controller at Bakers has provided the income statement.

Question 1: Using the income statement provided, compute Bakers' ordinary business income (loss).

Question 2 : Using the income statement provided,

calculate the sum of Bakers' total separately stated items.

INCOME STATEMENT SALES 450000 COST OF GOODS SOLD -150000 GROSS PROFIT 300000 CHARITABLE CONTRIBUTIONS -10000 RENT EXPENSE -24000 INT EXP (BUSINESS RELATED) -12000 OFFICER COMPENSATION -120000 DEPRECIATION( INCLUDING $50,000 SECTION 179 EXPENSE) -55000 -221000 OPERATING PROFIT 79000 OTHER INCOME/LOSSES LONG-TERM CAPTIAL GAIN 26000 DIVIDENDS FROM DOMESTIC STOCK 5500 SECTION 1245 GAIN ON TRUCK SALE 10000 SECTION 1231 GAIN ON TRUCK SALE 15000 56500 NET INCOME 135500