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?
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?
Chapter12: S Corporations
Section: Chapter Questions
Problem 16CE
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Question
- 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d702b96-16c9-42c6-953e-90c469a3b56f%2Fe9309d34-522d-4b50-b4aa-386cd3cbaac8%2Fb8y5f0d_processed.png&w=3840&q=75)
Transcribed Image Text: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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