Own 1,000 shares of common stock from Milkshake inc which is an S corporation and has 100,000 shares outstanding. Milkshake inc reported a taxable income of $200,000 and paid a distribution of $1.00 per share during the current year. Milkshake typically does not send out K-1 reports until late April. However, the preliminary report has been consistent with the K-1 for many years. You do not materially participate in Milkshakes activities. Preminiary Report Entity Milkshake Inc Description: Ordinary income - $2,000 Distribution 1,000. The filler is the head of the household with an earned salary of $63,137. How would this look on an individual income tax for the year 2020?
Own 1,000 shares of common stock from Milkshake inc which is an S corporation and has 100,000 shares outstanding. Milkshake inc reported a taxable income of $200,000 and paid a distribution of $1.00 per share during the current year. Milkshake typically does not send out K-1 reports until late April. However, the preliminary report has been consistent with the K-1 for many years. You do not materially participate in Milkshakes activities. Preminiary Report Entity Milkshake Inc Description: Ordinary income - $2,000 Distribution 1,000. The filler is the head of the household with an earned salary of $63,137. How would this look on an individual income tax for the year 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Own 1,000 shares of common stock from
Milkshake inc which is an S corporation and has
100,000 shares outstanding. Milkshake inc
reported a taxable income of $200,000 and
paid a distribution of $1.00 per share during the
current year. Milkshake typically does not send
out K-1 reports until late April. However, the
preliminary report has been consistent with the
K-1 for many years. You do not materially
participate in Milkshakes activities.
Preminiary Report
Entity - Milkshake Inc
Description:
Ordinary income - $2,000
Distribution - 1,000.
The filler is the head of the household with an
earned salary of $63,137.
How would this look on an individual income tax
for the year 2020?
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