Reference no: EM131563908

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 a S corporation owned equally by Henry, Iris, and Jasmine and indicate the tax form(s) to report the business activity.