The profit and loss statement of Kitsch Ltd., an S corporation, shows $115,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. Selling expenses ($23,000) Tax-exempt interest income 3,450 Dividends received 10,350 5 1231 gain 8,050 Depreciation recapture income 11,500 Net income from passive real estate rentals 5,750 Long-term capital loss (6,900) Salary paid to owners (each) (13,800) Cost of goods sold (103,500) a. Compute Kitsch's nonseparately stated income or loss for the tax year. The entity's nonseparately stated computed is s b. What would be the share of this year's nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders?

The profit and loss statement of Kitsch Ltd., an S corporation, shows $115,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. Selling expenses ($23,000) Tax-exempt interest income 3,450 Dividends received 10,350 5 1231 gain 8,050 Depreciation recapture income 11,500 Net income from passive real estate rentals 5,750 Long-term capital loss (6,900) Salary paid to owners (each) (13,800) Cost of goods sold (103,500) a. Compute Kitsch's nonseparately stated income or loss for the tax year. The entity's nonseparately stated computed is s b. What would be the share of this year's nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders?

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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