Zebra, Inc., a calendar year S corporation, incurred the following items this year.
Sammy is a 40% Zebra shareholder throughout the year.
Operating income ............... $100,000
Cost of goods sold ................ (40,000)
Depreciation expense (MACRS) .......... (10,000)
Administrative expenses ............. ($ 5,000)
§1231 gain .................... 21,000
Depreciation recapture income .......... 25,000
Short-term capital loss from stock sale ....... (6,000)
Long-term capital loss from stock sale ....... (4,000)
Long-term capital gain from stock sale ....... 15,000
Charitable contributions ............. (4,500)
a. Calculate Sammy's share of Zebra's nonseparately computed income or loss.
b. Calculate Sammy's share of any Zebra long-term capital gain.