Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation. Dominique owns 65%, and Terrell owns 35%. The business has the following results in the current vear Revenue $ 2,100,000 Business expenses 1,470,000 Charitable contributions 46,500 Short-term capital losses 13,840 Long-term capital gains 6,400 Required How do Dominique and Terrell report these items for tax purposes?
Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation. Dominique owns 65%, and Terrell owns 35%. The business has the following results in the current vear Revenue $ 2,100,000 Business expenses 1,470,000 Charitable contributions 46,500 Short-term capital losses 13,840 Long-term capital gains 6,400 Required How do Dominique and Terrell report these items for tax purposes?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation. Dominique owns 65%, and Terrell owns 35%. The business has the following results in the current vear
Revenue $ 2,100,000
Business expenses 1,470,000
Charitable contributions 46,500
Short-term capital losses 13,840
Long-term capital gains 6,400
Required
How do Dominique and Terrell report these items for tax purposes?
Transcribed Image Text:Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation. Dominique owns 65%, and Terrell
owns 35%. The business has the following results in the current year:
Revenue
Business expenses
Charitable contributions
Short-term capital losses
Long-term capital gains
Revenues
Expenses
Ordinary income
Charitable contributions
$ 2,100,000
1,470,000
Required:
How do Dominique and Terrell report these items for tax purposes?
S/T capital losses
LIT capital gains
46,500
3,840
6,400
Total
$2,100,000
1,470,000
Dominique (65%)
630,000 $
46,500
(3,840)
6,400
Terrell (35%)
955,500 $
30,225
(2,496)
4,160
Reporting Schedule
514,500 To Schedule E
16,275 To Schedule A
(1,344) To Schedule D
2,240 To Schedule D
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