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Zebra, Inc., a calendar year S corporation, incurred the following items this year. Sammy is a 40% Zebra shareholder throughout the year. Operating income $100,000 Cost of goods sold (40,000) Depreciation expense (MACRS) (10,000) Administrative expenses (5,000) §1231 gain 21,00012-3412-35 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. $28,000

b. $6,000

Explanation:

The computation of Shammy's share and Sammy share in Long term capital gain is shown below:-

a. Non separately income = Operating income + Depreciation recapture income - Cost of goods sold -ADM expense - Depreciation

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

= $70,000

Shammy's Share = Non separately income × Sammy Percentage

= $70,000 × 0.40

= $28,000

b. Sammy share in Long term capital gain =  Long-term capital gain from stock sale × Sammy Percentage

= 15,000 × 0.40

= $6,000

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