The profit and loss statement of Kitsch Ltd., an S corporation, shows $94,000 book income. Kitsch is owned equally by four shareholders. James Billings is a 25% shareholder throughout the year. From supplemental data, you obtain the following information about items that are included in book income. SELLING EXPENSES -21,200 TAX-EXEMPT INTEREST INCOME 3,000 DIVIDENDS RECEIVED 9,000 SECTION 1231 GAIN 7,000 DEPRECIATION RECAPTURE INCOME 11,000 SALES REVENUE 225,200 NET INCOME FROM REAL ESTATE RENTALS 5,000 LONG TERM CAPITAL LOSS -6,000 SALARY PAID TO OWNERS -48,000 COST OF GOODS SOLD -91,000 Kitschs ordinary income or loss Billings allocated ordinary income (loss) Billings allocated tax exempt income