Problem 22-24 (Algorithmic) (LO. 5, 6)

The profit and loss statement of Kitsch Ltd., an S corporation, shows $125,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income.

Selling expenses	($25,000)
Tax-exempt interest income	3,750
Dividends received	11,250
1231 gain	8,750
Depreciation recapture income	12,500
Net income from passive real estate rentals	6,250
Long-term capital loss	(7,500)
Salary paid to owners (each)	(15,000)
Cost of goods sold	(112,500)

a. The entity's nonseparately stated computed is $_______________.

b. The portion of nonseparately stated income or loss for James Billings, one of the the Kitsch shareholders, is $_______________.

c. What is James Billings share of tax-exempt interest income, if any? Round your answer to the nearest value. $____________________

Is the income taxable to him this year? _______________(TAXABLE/NONTAXABLE)