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  3. the company fpa has the following income expense and loss...

Question: the company fpa has the following income expense and loss...

Question details

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
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