Problem 22-24 (LO. 5, 6) The profit and loss statement of Kitsch Ltd., an S...
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Problem 22-24 (LO. 5, 6) The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 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 Tax-exempt interest income Dividends received $1231 gain Depreciation recapture income Net income from passive real estate rentals Long-term capital loss Salary paid to owners (each) Cost of goods sold ($21,200) 3,000 9,000 7,000 11,000 5,000 (6,000) (12,000) (91,000) a. The entity's nonseparately stated income is Feedback Check My Work b. The portion of nonseparately stated income or loss for James Billings, one of the Kitsch shareholders, is Feedback Check My Work c. What is James Billings' share of tax-exempt interest income, if any? Is the income taxable to him this year? not taxable
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