Prepare a calculation of taxable income for sole proprietors

Reference no: EM131498474

Assignment: TAX Module Scenario Guidelines

The company FPA has the following income, expense, and loss items for the current year.

Sales $850,000
Tax-exempt interest $40,000
Long-term capital gain $85,000
Short-term capital loss $35,000
Passive activity loss $20,000
Cost of goods sold $480,000
Depreciation $40,000
Section 179 expense $50,000
Other operating expenses $200,000
Net operating loss (from previous year) $24,000

Prepare a calculation of taxable income for the following scenarios and indicate the tax form(s) to report the business activity:

- Sole proprietorship
- Partnership equally owned by Vinnie and Chandra
- Corporation owned by Kim
- S corporation owned equally by Henry, Iris, and Jasmine.

Attachment:- Taxable_Income.rar

Reference no: EM131498474

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