XYZ Corporation (an S corporation) is owned by Jane and Rebecca, who are each 50 percentshareholders. At the beginning of the year, Jane's basis in her XYZ stock was $49,000. XYZreported the following tax information for 2022.Description AmountSales revenue $ 721,000Cost of goods sold (209,000)Long-term capital gain 17,000Dividend income 18,500Tax-exempt interest 12,000Salary to owners (129,000)Employee wages (59,000)Depreciation expenses (11,100)Miscellaneous expenses (12,250)Overall net income $ 348,150Required:a. What amount of ordinary business income is allocated to Jane?b. What is the amount and character of separately stated items allocated to Jane?c. What is Jane's basis in her XYZ Corporation stock at the end of the year?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $49,000. XYZ
reported the following tax information for 2022.
Description Amount
Sales revenue $ 721,000
Cost of goods sold (209,000)
Long-term capital gain 17,000
Dividend income 18,500
Tax-exempt interest 12,000
Salary to owners (129,000)
Employee wages (59,000)
Depreciation expenses (11,100)
Miscellaneous expenses (12,250)
Overall net income $ 348,150
Required:
a. What amount of ordinary business income is allocated to Jane?
b. What is the amount and character of separately stated items allocated to Jane?
c. What is Jane's basis in her XYZ Corporation stock at the end of the year?

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