During the current year, Thrasher (a calendar year, accrual basis S corporation) records the following transactions. Sales $1,500,000 Cost of goods sold $900,000 Long-term capital gain $11,000 Short-term capital gain $5,000 Salaries $210,000 Qualified dividends from stock investments $30,000 Rent expense $170,000 Advertising expense $20,000 Interest expense on business loan $15,000 Section 1231 gain $25,000 Organizational expenditures $3,000 Charitable contributions $5,000 Bad debt (trade account receivable deemed to be uncollectible) $10,000 Cash dividend distributed to shareholders $120,000 Required: A. Determine Thrasher’s separately stated items for the current year B. Determine Thrasher’s ordinary business income for the current year
During the current year, Thrasher (a calendar year, accrual basis S corporation) records the following transactions.
Sales $1,500,000
Cost of goods sold $900,000
Long-term
Short-term capital gain $5,000
Salaries $210,000
Qualified dividends from stock investments $30,000
Rent expense $170,000
Advertising expense $20,000
Interest expense on business loan $15,000
Section 1231 gain $25,000
Organizational expenditures $3,000
Charitable contributions $5,000
Bad debt (trade account receivable deemed to be uncollectible) $10,000
Cash dividend distributed to shareholders $120,000
Required:
A. Determine Thrasher’s separately stated items for the current year
B. Determine Thrasher’s ordinary business income for the current year
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