Question

Cathy is a 30% shareholder throughout the year in Goff, Inc., a calendar year S-Corp. Sales...

Cathy is a 30% shareholder throughout the year in Goff, Inc., a calendar year S-Corp.

Sales

$210,000

COGS

$87,000

Depreciation Expense

$28,000

Administrative Expense

$10,000

1231 Gain

$15,000

1245 Gain

$12,000

STCL from sale of stock

$6,000

LTCL from sale of stock

$8,000

LTCG from sale of stock

$17,000

Charitable Contribution

$5,000

a. Calculate Cathy’s share of ordinary income.

b. Calculate Cathy’s share of separately stated items.

Homework Answers

Answer #1
Cathy’s share of ordinary income
Particulars Amount ($)
Sales 2,10,000
COGS 87,000
Depreciation Expense 28,000
Administrative Expense 10,000
1231 Gain 15,000
1245 Gain 12,000
3,62,000
Cathy’s share of ordinary income. $ 1,08,600
(30% of 3,62,000)
Cathy’s share of separately stated items
STCL from sale of stock 6000
LTCL from sale of stock 8000
LTCG from sale of stock 17000
Charitable Contribution -5000
26,000
Cathy’s share of separately stated items $ 7,800
(30% of 26,000)
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bernie is a shareholder in TimberLane, a calendar year S corporation. At the beginning of the...
Bernie is a shareholder in TimberLane, a calendar year S corporation. At the beginning of the year, his stock basis is $62,000, his share of the AAA is $13,000, and his share of corporate AEP is $38,000. At the end of the year, Bernie receives from TimberLane a $31,000 cash distribution. Bernie's share of S corporation items includes a $10,000 long-term capital gain and a $68,000 ordinary loss. Determine the effects of these events on TimberLane's AEP.
CSU, Inc., is a calendar year S corporation. CSU’s Form 1120S shows nonseparately stated ordinary income...
CSU, Inc., is a calendar year S corporation. CSU’s Form 1120S shows nonseparately stated ordinary income of $120,000 for the year. Taewon owns 30% of the CSU stock throughout the year. The following information is obtained from the corporate records. Tax-exempt interest income $ 4,500 Salary paid to Taewon (78,000) Charitable contributions (9,000) Dividends received from a non-U.S. corporation 7,500 Short-term capital loss (9,000) Depreciation recapture income 16,500 Refund of prior state income taxes 7,500 Cost of goods sold ($108,000)...
ACCT 630, Advanced Corporate Taxation , ACCT630-01 PROJECT – S CORPORATIONS (1) Your assignment is to...
ACCT 630, Advanced Corporate Taxation , ACCT630-01 PROJECT – S CORPORATIONS (1) Your assignment is to calculate the answers for Problem 5A(9) of the Study Problems as set forth below. (3) Check figures: (a) Addition to each shareholder’s stock basis 67 (b) Addition to each shareholder’s AAA 17 (4) Problem The stock of X is owned equally by two shareholders: Y (an individual with a stock basis of $100) and A (an individual with a stock basis of $40). X...
2 . Identify which of the following statements is true: If an S Corporation has no...
2 . Identify which of the following statements is true: If an S Corporation has no accumulated earnings and profits, the amount distributed to a shareholder will not increase the shareholder's basis in the stock        If a C Corporation does not distribute its income to its shareholders, double taxation of the income will occur.        C Corporation operating losses are deductible by the individual shareholders        S Corporation operating losses are never deductible by the individual...
During the current year, Marlene, Nancy and Olive formed a new S Corporation. Solely in exchange...
During the current year, Marlene, Nancy and Olive formed a new S Corporation. Solely in exchange for stock, Marlene and Nancy contributed appreciated property, while Olive contributed services. The exchanges of Marlene and Nancy will be nontaxable if: Olive receives 30% of the stock Olive receives 80% of the stock Olive receives 15% of the stock Marlene and Nancy together receive 50% of the stock In June of 2018, Alice acquired her only machine for $30,000 to use in her...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT