Other Income/Expense

Gain on sale of Government Debt Investments4 $5,052

Loss on sale of corp. debt investments*5 ($300)

Gain on the Sale of Business Assets*6 $33,000

Gain on the exchange of real property*7 $200,000

Foot notes

*5 Sold some of its Bolt Corp. bonds on 10/1/19 for $700 (its fair market value) to Patricia Sheridan. The bonds that were sold were purchased on 12/26/12 for $1,000. Royal Crown did not receive an IRS Form 1099B showing the sale of these bonds. *6 The $33,000 gain on the sale of business assets in 2019 refers to the sale of the forklift to an unrelated party on 4/3/19 for $36,000. Royal Crown paid a $3,000 commission expense to a broker related to the sale of the forklift. See additional details on the forklift in footnote #9 below. 7 See additional details in footnote #8 below.

*8 While Royal Crown rents the warehouse in which it operates, it owned a vacant piece of property 3 miles away for many years. The property was used to store some of its excess packaging in case they did not have room in their warehouse. The property was originally purchased for $400,000 on 9/13/2012. The address for this property was 16 Bracket Way Atlanta, GA 30302. On March 25, 2019 this property was exchanged with another, unrelated taxpayer, for another vacant lot that will also be used as a place to store excess packaging. The fair market value of the 16 Bracket Way property at the time of the exchange was $600,000. The replacement property is located at 5888 Hydrox Way Atlanta, GA 30309. The fair market value of the Hydrox Way property at the time of the exchange was $575,000. There were no expenses related to the exchange and the other party assumed the mortgage on the Bracket Way property (a $25,000 liability at the time of the exchange).

How do I adjust these amounts for a corporation with only two shareholders.

Thanks