Maul, Inc., a calendar year S corporation, incurred the following items.
Tax-exempt interest income .................................$ 7,000
Sales ........................................................................140,000
Depreciation recapture income ............................12,000
Long-term capital gain ...........................................20,000
§ 1231 gain ................................................................7,000
Cost of goods sold ................................................(42,000)
Administrative expenses .....................................(15,000)
Depreciation expense (MACRS) ..........................(17,000)
Charitable contributions .......................................(7,000)
a. Calculate Maul’s nonseparately computed income or loss.
b. If Carl is a 40% owner of Maul, Inc., what is his share of the long term capital gain?