The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income.
Selling expenses ($21,200)
Tax-exempt interest income 3,000
Dividends received 9,000
§1231 gain 7,000
Depreciation recapture income 11,000
Net income from passive real estate rentals 5,000
Long-term capital loss (6,000)
Salary paid to owners (each) (12,000)
Cost of goods sold (91,000)
a. The entity's nonseparately stated income is $82,000.
b. The portion of nonseparately stated income or loss for James Billings, one of the Kitsch shareholders, is $20,500.
c. What is James Billings' share of tax-exempt interest income, if any?
$
Is the income taxable to him this year?
not taxable
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch is owned equally by four shareholders. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Find the value of n. 394 * n = 3.94
Answers (1)
What was the average maturity level (with a high of 5) reported by survey participants for high performing organizations and low performing ones in the 2014 study by pm solutions?
Answers (1)
A company must repay the bank a single payment of $38,000 cash in 5 years for a loan it entered into. The loan is at 6% interest compounded annually. The present value factor for 5 years at 6% is. 7473.
Answers (2)
Early supplier involvement (ESI) involves: a. Inviting suppliers to share their ideas for improving mature products b. Inviting suppliers to share their ideas for improving new products during the design process c.
Answers (1)
A report can be made from one or more tables or a query. the object (s) that a report is based on is known as the
Answers (1)
New Questions in Business
Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines.
Answers (1)
Use the following example to answer the following questions: Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.
Answers (1)
Barr Corp. started a long-term construction project in 20X0. The following data relate to this project: Contract price $4,200,000 Costs incurred in 20X0 $1,750,000 Estimated costs to complete $1,750,000 Progress billings $900,000 Collections on
Answers (1)
Bob contributed a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 subject to a mortgage of $120,000 in exchange for a 30 percent interest in the Alpha Partnership. Alpha will assume the mortgage on the building.
Answers (1)
Nareen is single, 68 years old, and reports the following in 2018: a. $12,000 alimony received (divorced in 2010) b. $82,520 Schedule C profit c. $3,500 SEP (self-employed pension) plan contribution d. $7,150 qualified dividends e.
Answers (1)