Tipton Inn Corporation 2020 Tax Period Question

Question Description

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.