CSU, Inc , is a calendar year S corporation CSUs Form 1120S shows nonseparately stated ordinary income of $120,000 for the year Taewon owns 30 of the CSU stock throughout the year The following information is obtained from the corporate records Tax exempt interest income $4,500 Salary paid to Taewon (78,000) Charitable contributions (9,000) Dividends received from a non U S corporation 7,500 Short term capital loss (9,000) Depreciation recapture income 16,500 Refund of prior state income taxes 7,500 Cost of goods sold ($108,000) Long term capital loss (10,500) Administrative expenses (27,000) Long term capital gain 21,000 Selling expenses (16,500) Taewons beginning stock basis 48,000 Taewons additional stock purchases 13,500 Beginning AAA 46,500 Taewons loan to corporation 30,000 Compute CSUs taxable income or loss, showing the calculation (on a white paper schedule not on IRS forms) Taxable income should equal Form 1120S, Schedule K, line 18, which should be the same as Form 1120S, Schedule M 1, line 8 Assume the I R C section 1374 and 1375 taxes do not apply HINT the refund of prior state income taxes is taxable other income TI check figure $127,500

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CSU, Inc., is a calendar year S corporation. CSUs Form 1120S shows nonseparately stated ordinary income of $120,000 for the year. Taewon owns 30% of

CSU, Inc., is a calendar year S corporation. CSUs Form 1120S shows nonseparately stated ordinary income of $120,000 for the year. Taewon owns 30% of the CSU stock throughout the year. The following information is obtained from the corporate records.

Tax-exempt interest income	$4,500
Salary paid to Taewon	(78,000)
Charitable contributions	(9,000)
Dividends received from a non-U.S. corporation	7,500
Short-term capital loss	(9,000)
Depreciation recapture income	16,500
Refund of prior state income taxes	7,500
Cost of goods sold	($108,000)
Long-term capital loss	(10,500)
Administrative expenses	(27,000)
Long-term capital gain	21,000
Selling expenses	(16,500)
Taewons beginning stock basis	48,000
Taewons additional stock purchases	13,500
Beginning AAA	46,500
Taewons loan to corporation	30,000

Compute CSUs taxable income or loss, showing the calculation (on a white paper schedule not on IRS forms). Taxable income should equal Form 1120S, Schedule K, line 18, which should be the same as Form 1120S, Schedule M-1, line 8. Assume the I.R.C. section 1374 and 1375 taxes do not apply. HINT: the refund of prior state income taxes is taxable other income. TI check figure $127,500.