The Tipton Inn Corporation operates as an S corp, and they have the following times for the 2020 tax period.
Operating expense – $170,000
Charitable Contribution – $2,000
Revenue – $140,000
Long term capital gain – $20,000
Distribution to shareholder- $9,000
Kathy is the sole shareholder and has a stock basis of $14,000 prior to raking into consideration the items set forth above.
Part A- compute the nonseparately stated income and the separately stated items of Tipton.
Part B- compute Kathy’s deductible loss and basin in stock after applying fly-through of Tipton’s items.