Waters Corporation is an S corporation with two equal shareholders, Mia Jones and David Kerns. This year, Waters recorded the following items of income and expense: Sales revenue Interest income Long-term capital gain Cost of goods sold Salary and wages Other operating expenses $ 500,000 6,000 10,000 Multiple Choice (250,000) (75,000) (55,000) Waters distributed $25,000 to each of its shareholders during the year. Calculate the S corporation's ordinary (non-separately stated) income and indicate which items must be separately stated. Ordinary income, $126,000; long-term capital gain is separately stated. Ordinary income, $120,000; Interest income and long-term capital gain are separately stated. Ordinary Income, $136,000; nothing is separately stated. Ordinary income, $195,000; interest income, long-term capital gain, and salary costs are separately stated.

Waters distributed $25,000 to each of its shoreholders duling the year Colculate the 5 corporation's ordinary inon separately stated) income and indicate which itemis must separately stated. Multpe choice Drakary income. 5136.600 tong term copatal gain in separtely stased Drdiacyincome, $136000, nowing is sepwatey steted