Problem: An "S" Corporation has the following items for the 2019 tax year
|
Revenue
|
$160,000
|
|
Operating expenses
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$190,000
|
|
Charitable contributions
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$5,000
|
|
Long term capital gains
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$20,000
|
|
Shareholder Distributions
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$10,000
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"G" (the sole shareholder of the corporation) has a stock basis of $15,000 prior to taking into consideration the items set forth above.
Required:
Q1. Calculate non-separately stated and separately stated items of the S Corp.
Q2. Calculate G's deductible loss and basis in stock after applying flow-through of the S Corp items.