Cathy is a 30% shareholder throughout the year in Goff, Inc., a calendar year S-
ID: 2524686 • Letter: C
Question
Cathy is a 30% shareholder throughout the year in Goff, Inc., a calendar year S-Corp.
Sales
$210,000
COGS
$87,000
Depreciation Expense
$28,000
Administrative Expense
$10,000
1231 Gain
$15,000
1245 Gain
$12,000
STCL from sale of stock
$6,000
LTCL from sale of stock
$8,000
LTCG from sale of stock
$17,000
Charitable Contribution
$5,000
a. Calculate Cathy’s share of ordinary income.
b. Calculate Cathy’s share of separately stated items.
Sales
$210,000
COGS
$87,000
Depreciation Expense
$28,000
Administrative Expense
$10,000
1231 Gain
$15,000
1245 Gain
$12,000
STCL from sale of stock
$6,000
LTCL from sale of stock
$8,000
LTCG from sale of stock
$17,000
Charitable Contribution
$5,000
Explanation / Answer
Cathy’s share of ordinary income Particulars Amount ($) Sales 2,10,000 COGS 87,000 Depreciation Expense 28,000 Administrative Expense 10,000 1231 Gain 15,000 1245 Gain 12,000 3,62,000 Cathy’s share of ordinary income. $ 1,08,600 (30% of 3,62,000) Cathy’s share of separately stated items STCL from sale of stock 6000 LTCL from sale of stock 8000 LTCG from sale of stock 17000 Charitable Contribution -5000 26,000 Cathy’s share of separately stated items $ 7,800 (30% of 26,000)
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