Nicole and Mohammad (married taxpayers filing jointly) are equal owners in an S corporation. The company reported sales revenue of $410,000 and expenses of $287,000. The corporation also earned $21,000 in taxable interest and dividend income and had $13,650 investment interest expense.

Nicole and Mohammad (married taxpayers filing jointly) are equal owners in an S corporation. The company reported sales revenue of $410,000 and expenses of $287,000. The corporation also earned $21,000 in taxable interest and dividend income and had $13,650 investment interest expense.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 26CE

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Question

Nicole and Mohammad (married taxpayers filing jointly) are equal owners in an S corporation. The company reported sales revenue of
$410,000 and expenses of $287,000. The corporation also earned $21,000 in taxable interest and dividend income and had $13,650
investment interest expense.
Required:
How are these amounts reported for tax purposes in the following schedules?
> Answer is complete but not entirely correct.
Schedule A
Schedule B
Schedule E
$
$
$
Amount
0X
21,000✔
13,650 x

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