Saul, Inc., a calendar year S corporation, incurred the following items.
|
Tax exempt bond interest income |
$ 7,000 |
|
Sales |
130,000 |
|
Depreciation recapture income |
12,000 |
|
Short term capital gain |
30,000 |
|
§1231 gain |
12,000 |
|
Cost of goods sold |
(42,000) |
|
Administrative expenses |
(15,000) |
|
Depreciation expense |
(17,000) |
|
Charitable contributions |
(14,000) |
a. Calculate Saul’s no separately computed income or loss.
b. If Maynor is a 40% owner, what is his share of the short term capital gain?