LO.4 An S corporation’s profit and loss statement shows net profits of $101,000 (book income). The corporation has three equal shareholders. From supplemental data, you obtain the following information about some items that are included in the $101,000.

Selling expenses ($21,200)

Municipal bond interest income 2,000 Dividends received on IBM stock 9,000

§ 1231 gain 6,000 Depreciation recapture income 13,000 Short-term capital gain 3,000 Long-term capital loss (9,000)

Salary paid to owners (each) (11,000)

Cost of goods sold (97,000)

Determine nonseparately computed S corporation income or loss.