Reference no: EM132663474

Problem - Maul, Inc., a calendar year S corporation, incurred the following items.

Tax-exempt interest income $7,000

Sales 140,000

Depreciation recapture income 12,000

Long-term capital gain 20,000

§ 1231 gain 7,000

Cost of goods sold (42,000)

Administrative expenses (15,000)

Depreciation expense (MACRS) (17,000)

Charitable contributions (7,000)

Required -

a. Calculate Maul's nonseparately computed income or loss.

b. If Carl is a 40% owner of Maul, Inc., what is his share of the long-term capital gain?