edderman Corp., an accrual-basis calendar year repair-service corporation, began business on Monday, January 3, 20X1. Fedderman’s valid S corporation election took effect retroactively on January 3, 20X1. For questions 1 through 4, determine the amount, if any, using the fact pattern for each item. Assume the following facts: Fedderman’s 20X1 books recorded the following items: Gross receipts $9,600 Interest income on investments 250 Charitable contributions 1,250 Supplies 1,200 What amount of net business income should Fedderman report on its 20X1 Form 1120S, U.S. Income Tax Return for an S Corporation, Schedule K?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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edderman Corp., an accrual-basis calendar year repair-service corporation, began business on Monday, January 3, 20X1. Fedderman’s valid S corporation election took effect retroactively on January 3, 20X1. For questions 1 through 4, determine the amount, if any, using the fact pattern for each item. Assume the following facts: Fedderman’s 20X1 books recorded the following items: Gross receipts $9,600 Interest income on investments 250 Charitable contributions 1,250 Supplies 1,200 What amount of net business income should Fedderman report on its 20X1 Form 1120S, U.S. Income Tax Return for an S Corporation, Schedule K?

My wrong Answer: 7,400

formula/clue given: {R} - {S}

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