For its year ended December 31,2017,Cupressa Corporation,an S corporation,had net income of $216,000 which included $180,000 of ordinary income from operations and a $36,000 net long-term capital gain.During 2017,a total of $90,000 was distributed to the corporation's nine equal shareholders,all of whom are on a calendar-year tax basis.For 2017,each shareholder should report:

Question

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Each shareholder should report their share of the S corporation's income, which includes both ordinary income and capital gains. With nine equal shareholders, each would report $20,000 of ordinary income ($180,000 / 9) and $4,000 of net long-term capital gain ($36,000 / 9).

For Its Year Ended December 31,2017,Cupressa Corporation,an S Corporation,had Net