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

Selling expenses ($19,200)

Municipal bond interest income 2,000 Dividends received on Boeing stock 8,000

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

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

Cost of goods sold (81,000)

a. Determine the nonseparately computed income or loss.

b. What is the portion of ordinary income or loss for Zariat, one of the Strategy shareholders?