The company FPA has the following income, expense, and loss items for the current year.

Sales $850,000 Tax-exempt interest $40,000 Long-term capital gain $85,000 Short-term capital loss $35,000 Passive activity loss $20,000 Cost of goods sold $480,000 Depreciation $40,000 Section 179 expense $50,000 Other operating expenses $200,000 Net operating loss (from previous year) $24,000

Prepare a calculation of taxable income for the following scenarios and indicate the tax form(s) to report the business activity:

• ? Sole proprietorship
• ? Partnership equally owned by Vinnie and Chandra
• ? Corporation owned by Kim
• ? S corporation owned equally by Henry, Iris, and Jasmine

TAX 650 Module Six Scenario Guidelines and Rubric The company FPA has the following income, expense, and loss items for the current year. Sales $850,000 Tax-exempt interest $40,000 Long-term capital gain $85,000 Short-term capital loss $35,000 Passive activity loss $20,000 Cost of goods sold $480,000 Depreciation $40,000 Section 179 expense $50,000 Other operating expenses $200,000 Net operating loss (from previous year) $24,000 Prepare a calculation of taxable income for the following scenarios and indicate the tax form(s) to report the business activity: Sole proprietorship Partnership equally owned by Vinnie and Chandra Corporation owned by Kim S corporation owned equally by Henry, Iris, and Jasmine Guidelines for Submission: Scenario assignments must follow these formatting guidelines: double spacing, 12-point Times New Roman font, one-inch margins, and citations in APA format. Page length requirement: 1-2 pages. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Computation: Sole Proprietorship Exemplary (100%) Meets \"Proficient\" criteria and the calculations are complete and error-free Computation: Partnership Meets \"Proficient\" criteria and the calculations are complete and error-free Proficient (90%) Calculations are free from major errors and demonstrate key steps in computing taxable income on sole proprietorships Calculations are free from major errors and demonstrate key steps in computing taxable income on partnerships Needs Improvement (70%) The calculation of taxable income has major errors Not Evident (0%) Does not calculate taxable income Value 20 The calculation of taxable income has major errors Does not calculate taxable income 20 Computation: C Corporation Meets \"Proficient\" criteria and the calculations are complete and error-free Computation: S Corporation Meets \"Proficient\" criteria and the calculations are complete and error-free Application of Resources Meets \"Proficient\" criteria and uses the best resources and formulae for each business type Calculations are free from major errors and demonstrate key steps in computing taxable income on C corporations Calculations are free from major errors and demonstrate key steps in computing taxable income on S corporations Appropriate resources and formulae are used consistently for each business type The calculation of taxable income has major errors Does not calculate taxable income 20 The calculation of taxable income has major errors Does not calculate taxable income 20 Appropriate resources and formulae are used for some computations, but not consistently for each business type Does not use appropriate resources or formulae 20 Earned Total 100%