Maul, Inc., a calendar year S corporation, incurred the following items. a. Whic
ID: 2457221 • Letter: M
Question
Maul, Inc., a calendar year S corporation, incurred the following items.
a. Which items are used to compute nonseparately stated income or loss? Select "Yes or No", whichever is applicable.
Maul's nonseparately computed income is $.
b. Carl’s share of Maul’s long-termcapital gain, a 40% shareholder, is $.
Tax-exempt interest income $7,000 Sales 140,000 Depreciation recapture income 12,000 Long-term capital gain 20,000 § 1231 gain 7,000 Cost of goods sold (42,000) Administrative expenses (15,000) Depreciation expense (MACRS) (17,000) Charitable contribution (7,000)Explanation / Answer
a) Items used to compute Non seperatly stated Income:
Tax excempt interest income: No seperatly stated item
Sales : Yes
Depreciation recapture income: Yes
Longterm capital gain: No seperatly stated item
1231 gain: No seperatly stated item
Cost of goods sold: Yes
Administrative expenses: Yes
Depreciation expense: Yes
Charitable contribution:No seperatly stated item
b) Carl's share in Long term capital gain (20,000 * 40 %) 8,000