Problem 8-42 (LO 8-4) Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation. Dominique owns 65%, and Terrell owns 35%. The business has the following results in the current year: Revenue Business expenses Charitable contributions Short-term capital losses Long-term capital gains Required: How do Dominique and Terrell report these items for tax purposes? Revenues Expenses Ordinary income Charitable contributions $ 2,100,000 1,470,000 46,500 3,840 6,400 S/T capital losses LT capital gains Answer is complete but not entirely correct. Dominique (65%) Terrell (35%) Total $ 2,100,000 1,470,000✔ 630,000 46,500 (3,840) 6,400 $ 955,500 $ 514,500 30,225 16,275 (2,496) (1,344) 4,160 2,240 Reporting Schedule To Schedule E To Schedule A To Schedule D To Schedule D ✔ ✓

Problem 8-42 (LO 8-4) Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation. Dominique owns 65%, and Terrell owns 35%. The business has the following results in the current year: Revenue Business expenses Charitable contributions Short-term capital losses Long-term capital gains Required: How do Dominique and Terrell report these items for tax purposes? Revenues Expenses Ordinary income Charitable contributions $ 2,100,000 1,470,000 46,500 3,840 6,400 S/T capital losses LT capital gains Answer is complete but not entirely correct. Dominique (65%) Terrell (35%) Total $ 2,100,000 1,470,000✔ 630,000 46,500 (3,840) 6,400 $ 955,500 $ 514,500 30,225 16,275 (2,496) (1,344) 4,160 2,240 Reporting Schedule To Schedule E To Schedule A To Schedule D To Schedule D ✔ ✓

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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