Reporting Deductions (LO. 2) Manuel and Fernando own and operate an electronics store, Electronica, as an S corporation. Manuel owns 70%, and Fernando owns 30%. For the current year, the store reports the following: Sales revenue Long-term capital gains Business expenses $1,000,000 8,000 Charitable contributions Non-deductible expenses Short-term capital losses Operating income (840,000) (9,000) (4,000) (15,000) $140,000 a. How must Electronica report its results to Manuel and Fernando for tax purposes? Manuel Fernando Taxable ordinary income 112,000 48,000 Long-term capital gain 5,600 2,400 Short-term capital loss 10,500 4,500 Charitable contributions 6,300 2,700 Non-deductible expenses 2,800 1,200 b. In addition to the income and deductions from Electronica, Manuel is married and has interest and dividend income of $3,500, long-term capital gain of $1,500, and other itemized deductions of $14,500. Note: The 2020 standard deductions are as follows: MFJ - $24,800; Single and MFS - $12,400; HOH - $18,650. What is his taxable income? His taxable income is $ 75,700 X.