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:

• S corporation owned equally by Henry, Iris, and Jasmine

Any business activities not included in your taxable income calculation must be separately listed with a brief explanation of why the item is excluded from taxable income

S Corporation
Tax form(s) that should be completed for the business activity:
Business Activity			$
		Income	$0.00
Separately Stated Items:			$		Explanation