a) In the O/S column above, write ‘O’ for any ordinary business items and write ‘S’ for any separately stated items. b) Assume that the entity is an S-Corp, and that Helen is also an employee of the S-Corp. If Helen, in addition to the amounts of income and expenses noted in the question above, draws a salary of $12,000 (amount includes salary plus all relevant taxes). Determine the following amounts: The amount of ordinary income allocated to Helen______________________________ The amount of capital gain allocated to Helen___________________________________
Helen owns 30% of a flow-through entity. The
O/S Item Amount
Sales Revenue 30,000
Dividends received 10,000
Tax-exempt interest income 15,000
Capital gain 5,000
Charitable contributions 1,000
Cost of Goods Sold 10,000
General Business Expenses 3,000
- a) In the O/S column above, write ‘O’ for any ordinary business items and write ‘S’ for any separately stated items.
- b) Assume that the entity is an S-Corp, and that Helen is also an employee of the S-Corp. If Helen, in addition to the amounts of income and expenses noted in the question above, draws a salary of $12,000 (amount includes salary plus all relevant taxes). Determine the following amounts:
The amount of ordinary income allocated to Helen______________________________
The amount of capital gain allocated to Helen___________________________________
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