Calculate Sammy share of charitable contributions

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Problem - 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

21,000

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)

Required -

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, if any.

c. Calculate Sammy's share of charitable contributions, if any.

 

Reference no: EM132648543

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