XYZ Corporation (an S corporation) is owned by Jane and Rebecca, who are each 50 percent shareholders. At the beginning of the year, Jane's basis in her XYZ stock was $54,000. XYZ reported the following tax information for 2022. Description Amount Sales revenue $ 716,000 Cost of goods sold (214,000) Long-term capital gain 22,000 Dividend income 26,000 Tax-exempt interest 17,000 Salary to owners (134,000) Employee wages (64,000) Depreciation expenses (10,600) Miscellaneous expenses (13,500) Overall net income $ 344,900 What amount of ordinary business income is allocated to Jane? Hint: you might want to work on question b) first. Identify all separated items, then the remaining will be ordinary business income What is the amount and character of separately stated items allocated to Jane? What is Jane's basis in her XYZ Corporation stock at the end of the year?
XYZ Corporation (an S corporation) is owned by Jane and Rebecca, who are each 50 percent shareholders. At the beginning of the year, Jane's basis in her XYZ stock was $54,000. XYZ reported the following tax information for 2022.
|
Description |
Amount |
|
Sales revenue |
$ 716,000 |
|
Cost of goods sold |
(214,000) |
|
Long-term |
22,000 |
|
Dividend income |
26,000 |
|
Tax-exempt interest |
17,000 |
|
Salary to owners |
(134,000) |
|
Employee wages |
(64,000) |
|
|
(10,600) |
|
Miscellaneous expenses |
(13,500) |
|
Overall net income |
$ 344,900 |
What amount of ordinary business income is allocated to Jane?
Hint: you might want to work on question b) first. Identify all separated items, then the remaining will be ordinary business income
What is the amount and character of separately stated items allocated to Jane?
What is Jane's basis in her XYZ Corporation stock at the end of the year?
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