Question
[Tax return question 3] (11 points). Charlize Theron is a shareholder (owns 40%) of Hollywood LLC, which is an S corporation. Hollywood LLC reported $40,000
[Tax return question 3] (11 points). Charlize Theron is a shareholder (owns 40%) of Hollywood LLC, which is an S corporation. Hollywood LLC reported $40,000 of business profit (gross receipts $60,000 minus repair and maintenance $3,000 minus office rent expense $17,000) and $5,000 of dividend (ordinary) income for the year. What amount of gross income from her ownership in Hollywood LLC would Charlize report in the current year? Based on the information above, fill in (1) Form 1040 (up to line 9 (total income)), (2) Sch. 1, (3) Sch. B, (4) Sch. E, (5) Form 1120S (page 1) and Sch. K (page 3), and (6) Sch. K-1.
Consistent with tax return questions 2 and 3, when saving the files, please add Q3 for each file.
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