Requirement a. What amount of income, loss, or deduction do the four shareholders report (assuming the corporation makes no special allocation election)? (Enter all amounts as positive numbers. Use a 365-day year for computations. Do not round intermediary calculations. Only round the amount you enter into the input field to the nearest dollar.)
Requirement a. What amount of income, loss, or deduction do the four shareholders report (assuming the corporation makes no special allocation election)? (Enter all amounts as positive numbers. Use a 365-day year for computations. Do not round intermediary calculations. Only round the amount you enter into the input field to the nearest dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
4
Transcribed Image Text:Joyville Corporation, an S corporation, uses the calendar year as its tax year. Bart, Alana, and Caleb own 70, 20, and 10 shares, respectively, of the Joyville stock. Caleb's basis for his stock is
$25,000 on January 1 of the current year (assume a non-leap year). On June 30, Alana gifted one-half of her stock to Maddox. On November 30, Caleb sold his stock to Maddox for $85,000.
Joyville reports the following results for the current year:
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Requirement a. What amount of income, loss, or deduction do the four shareholders report (assuming the corporation makes no special allocation election)? (Enter all amounts as positive
numbers. Use a 365-day year for computations. Do not round intermediary calculations. Only round the amount you enter into the input field to the nearest dollar.)
Allocation to Shareholder
Ordinary income
Long-term capital loss
Charitable contributions
Bart
Alana
Caleb
Maddox
Total
Results
Ordinary income
Long-term capital loss
Charitable contributions
Print
Done
140,000
11,000
12,000
X
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