Question - Zebra, Inc., a calendar year S corporation, incurred the following items this year. Sammy is a 40% Zebra shareholder throughout the year.
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Operating income
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$100,000
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Cost of goods sold
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(40,000)
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Depreciation expense (MACRS)
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(10,000)
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Administrative expenses
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(5,000)
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§ 1231 gain
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21,000
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Depreciation recapture income
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25,000
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Short-term capital loss from stock sale
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(6,000)
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Long-term capital loss from stock sale
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(4,000)
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Long-term capital gain from stock sale
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15,000
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Charitable contributions
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(4,500)
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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.