a) Calculate the S corporation's ordinary (non-separately stated) income and indicate which items must be separately statedb) If at the beginning of the year, Archer had a basis of 20,000 compute Archer’s basis at the end of the year.c) Assume that Voyager reported a loss of $70,000 instead (and no separately stated items or distributions). If Janeway had a basis of 10,000 in her stock at the beginning of the year, what is the amount of loss she can report on her return? Voyager Corporation is an S corporation with two equal shareholders, Archer and Janeway. This year,Voyager recorded the following items of income and expense:Sales revenue$ 250,000Interest income3,000Long-term capital gain5,000Cost of goods sold(125,000 )Salary and wages(50,000 )Other operating expenses(25,000 )Voyager distributed $25,000 to each of its shareholders during the year.

capital gain are subject to capital gain tax.

Answered: a) Calculate the S corporation's…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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a) Calculate the S corporation's ordinary (non-separately stated) income and indicate which items must be separately stated
b) If at the beginning of the year, Archer had a basis of 20,000 compute Archer’s basis at the end of the year.
c) Assume that Voyager reported a loss of $70,000 instead (and no separately stated items or distributions). If Janeway had a basis of 10,000 in her stock at the beginning of the year, what is the amount of loss she can report on her return?

Voyager Corporation is an S corporation with two equal shareholders, Archer and Janeway. This year,
Voyager recorded the following items of income and expense:
Sales revenue
$ 250,000
Interest income
3,000
Long-term capital gain
5,000
Cost of goods sold
(125,000 )
Salary and wages
(50,000 )
Other operating expenses
(25,000 )
Voyager distributed $25,000 to each of its shareholders during the year.

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