The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income....
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Accounting
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
($21,200)
Tax-exempt interest income
3,000
Dividends received
9,000
1231 gain
7,000
Depreciation recapture income
11,000
Net income from passive real estate rentals
5,000
Long-term capital loss
(6,000)
Salary paid to owners (each)
(12,000)
Cost of goods sold
(91,000)
Compute Kitschs nonseparately stated income or loss for the tax year.
What would be the share of this years nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders?
What is James Billingss share of tax-exempt interest income, if any? Is the income taxable to him this year?
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