Shares of ordinary income and separately stated items

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Reference no: EM131867996

Don, a shareholder of Meadow Brook Corporation, an S corporation, owned 20% of the stock for 292 days and 25% of the stock for the remaining 73 days in the year. Her stock basis at the beginning of the year was $32,000 and she purchased an additional $9,000 of stock this year. Given the amount of income and deductions listed below, compute Don’s share of each item.

Ordinary income: $80,000

Tax-exempt interest income: 3,000

Salary paid to Dion: -52,000

Charitable contributions: -6,000

Dividends received: 5,000

Short-term capital loss: -6,000

Refund of prior state income taxes: 5,000

LTCL: -7,000

LTCG: 14,000

What are Don’s shares of ordinary income and separately stated items for the year? What is Don’s adjusted basis in her S stock at year-end?

Reference no: EM131867996

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