LO.5, 6 Who, Inc., is a calendar year S corporation. Who’s book income this year totals

$172,000. Who is owned equally by four shareholders. From supplemental data, you obtain the following information about items included in book income.

Tax-exempt interest income $ 3,200 Dividends received 9,000

§ 1231 gain 6,000 Depreciation recapture income 13,270 Recovery of bad debts 4,000 Short-term capital loss (8,000)

Salary to owners (each) (11,000)

Cost of goods sold (110,000)

Selling expenses (26,100)

Distribution to shareholders (12,600)

a. Compute Who’s nonseparately computed income or loss.

b. How much ordinary income or loss is reported by Sally, one of Who’s shareholders?

c. How much dividend income is reported on Sally’s Schedule K–1?