Zebra, Inc., a calendar year S corporation, incurred the following items this year. Sammy is a 40% Zebra shareholder throughout the year.
Operating income (sales) $100,000
Cost of goods sold (40,000)
Depreciation expense (MACRS) (10,000)
Administrative expenses (5,000)
§1231 gain 21,000
Depreciation recapture income $25,000
Short-term capital loss from stock sale (6,000)
Long-term capital loss from stock sale (4,000)
Long-term capital gain from stock sale 15,000
Charitable contributions (4,500)
a. Calculate Sammy’s share of Zebra’s nonseparately computed income or loss.
b. Calculate Sammy’s share of any Zebra long-term capital gain.

Respuesta :

Answer:

a. $70,000

b. $6,000

Explanation:

Non separately income = Operating income +Depreciation recapture income -COGS -ADM expense -depreciation

= $100,000 + $25,000 - $40,000 - $5,000 - $10,000  

= $70,000

a. Sammy share of Zebra’s non-separately computed income or loss

= $70,000 * 0.40

= $28,000

b. Sammy share in Long term capital gain

= $15,000 * 0.40

= $6,000