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
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
DO NOT GIVE SOLUTION IN IMAGE FORMAT
Step by step
Solved in 3 steps
