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Name of organization: Mush Fitness, Inc. Address: 3139 Oak Ridge Drive Your City

ID: 2586193 • Letter: N

Question

Name of organization: Mush Fitness, Inc. Address: 3139 Oak Ridge Drive Your City, YS XXXXX EIN: 64-6499001 Entity Type: S-corparation Date incorporated: March 01, 2011 Officer signing: Bonnie Mush Officer SSN: 747-64-1001

Bonnie Mush is an officer with Mush Fitness and receives a $40,000 salary from the business. During 2016, Mush had the following income and (expenses):

Service income: $62,675

Customer refunds: ($ 550)

Interest income: $ 6,525

Qualified dividend income: $ 350

Facility rental: ($12,000)

Officer salary: ($40,000)

Other salaries: ($ 8,000)

Fitness supplies: ($ 750)

Laundry services: ($ 1,200) T

Towels: ($ 270)

Mats: ($ 537)

1) What is the total income reported on the Form 1120S, line 6?

a)$62,125

b)$62,475

c)$62,675

d)$69,550

2) Where should compensation of officers be reported on the Form 1120S?

a) Form 1120S, line 7.

b)Form 1120S, line 8.

c)Form 1125-E, line 4.

d)Form 1125-E, line 4 and Form 1120S, line 7.

3) What is the ordinary income (loss) Mush Fitness should report on line 21 of the Form 1120S?

a) $6,793

b) $6,243

c) ($632)

d) ($40,632)

Explanation / Answer

1) What is the total income reported on the Form 1120S, line 6?

a)$62,125

2) Where should compensation of officers be reported on the Form 1120S?

a) Form 1120S, line 7.

3) What is the ordinary income (loss) Mush Fitness should report on line 21 of the Form 1120S?

c) ($632)