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expenses of S8, UUU Unexpireu NULLIUWU TUIL CUP income for the year is $65,000. Calculate any built-in gains tax. 48. LO.10 Flint, an S corporation

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expenses of S8, UUU Unexpireu NULLIUWU TUIL CUP income for the year is $65,000. Calculate any built-in gains tax. 48. LO.10 Flint, an S corporation with substantial AEP reports operating revende of $410,000, taxable interest income of $390,000, operating expense $200,000, and deductions attributable to the interest of $150,000. Calculate any Pas sive investment income penalty tax payable. aking 49. LO.5, 6, 11 Bonnie and Clyde each own one-third of a fast-food restaurant their 13-year-old daughter owns all of the other shares. Both parents work full-time in the restaurant, but the daughter works infrequently. Ne nor Clyde receives a salary during the year, when the ordinary income S corporation is $180,000. An IRS agent estimates that reasonable salaries for Bonnie, Clyde, and the daug ter are $30,000, $35,000, and $10,000, respectively. What adjustments would you expect the IRS to impose upon these taxpayers? LO.5 Bertha, a single individual, reports taxable income of $177,500, of which $130,000 is attributable to an S corporation that provides consulting services, after paying wages of $72,000 to employees (but not to Bertha). The entity made no acquisitions of depreciable property during the year. Calculate any 20% qualified business income deduction. 51. LO.6, 10 Samuel Reese sold 1,000 shares of his stock in Maroon, Inc., an S corpo- ration. He sold the stock for $15,700 after he had owned it for six years. Samuel had paid $141,250 for the stock, which was issued under $ 1244. Samuel is married and is the owner of the 1,000 shares. Determine the appropriate treatmer of any gain or loss on the stock sale. 2. LO.7, 11 Blue is the owner of all of the shares of an S corporation, and Blue expenses of S8, UUU Unexpireu NULLIUWU TUIL CUP income for the year is $65,000. Calculate any built-in gains tax. 48. LO.10 Flint, an S corporation with substantial AEP reports operating revende of $410,000, taxable interest income of $390,000, operating expense $200,000, and deductions attributable to the interest of $150,000. Calculate any Pas sive investment income penalty tax payable. aking 49. LO.5, 6, 11 Bonnie and Clyde each own one-third of a fast-food restaurant their 13-year-old daughter owns all of the other shares. Both parents work full-time in the restaurant, but the daughter works infrequently. Ne nor Clyde receives a salary during the year, when the ordinary income S corporation is $180,000. An IRS agent estimates that reasonable salaries for Bonnie, Clyde, and the daug ter are $30,000, $35,000, and $10,000, respectively. What adjustments would you expect the IRS to impose upon these taxpayers? LO.5 Bertha, a single individual, reports taxable income of $177,500, of which $130,000 is attributable to an S corporation that provides consulting services, after paying wages of $72,000 to employees (but not to Bertha). The entity made no acquisitions of depreciable property during the year. Calculate any 20% qualified business income deduction. 51. LO.6, 10 Samuel Reese sold 1,000 shares of his stock in Maroon, Inc., an S corpo- ration. He sold the stock for $15,700 after he had owned it for six years. Samuel had paid $141,250 for the stock, which was issued under $ 1244. Samuel is married and is the owner of the 1,000 shares. Determine the appropriate treatmer of any gain or loss on the stock sale. 2. LO.7, 11 Blue is the owner of all of the shares of an S corporation, and Blue

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