The profit and loss statement of Treadwell Ltd.., an S corporation, shows $265,000 book income.Treadwell is owned equally by four shareholders. From supplemental data, you obtain the followinginformation about items that are included in book income.Selling expenses($53,000)Tax-exempt interest income7,950Dividends received23,850§ 1231 gain18,550Depreciation recapture income26,500Net income from passive real estate rentals13,250Long-term capital loss(15,900)Salary paid to owners (each)(31,800)Cost of goods sold(238,500)a. Compute Treadwell's nonseparately stated income or loss for the tax year.b. What would be the share of this year's nonseparately stated income or loss items for Leo Lion, one ofthe Treadwell shareholders?c. What is Leo Lion's share of tax-exempt interest income, if any?

Section 1231 gain: Gain from the sale of a real or depreciable property used in a trade or business…

The profit and loss statement of Treadwell Ltd., an S corporation, shows $265,000 book income. Treadwell is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. ($53,000) Selling expenses 7,950 Tax-exempt interest income 23,850 Dividends received § 1231 gain 18,550 26,500 Depreciation recapture income Net income from passive real estate rentals 13,250 (15,900) Long-term capital loss Salary paid to owners (each) (31,800) Cost of goods sold (238,500) a. Compute Treadwell's nonseparately stated income or loss for the tax year. b. What would be the share of this year's nonseparately stated income or loss items for Leo Lion, one of the Treadwell shareholders? c. What is Leo Lion's share of tax-exempt interest income, if any?

The profit and loss statement of Treadwell Ltd., an S corporation, shows $265,000 book income. Treadwell is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. ($53,000) Selling expenses 7,950 Tax-exempt interest income 23,850 Dividends received § 1231 gain 18,550 26,500 Depreciation recapture income Net income from passive real estate rentals 13,250 (15,900) Long-term capital loss Salary paid to owners (each) (31,800) Cost of goods sold (238,500) a. Compute Treadwell's nonseparately stated income or loss for the tax year. b. What would be the share of this year's nonseparately stated income or loss items for Leo Lion, one of the Treadwell shareholders? c. What is Leo Lion's share of tax-exempt interest income, if any?

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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