Connie's Restaurant has been an S corporation since it was formed in 2006. Its results for the previous year are as follows:
$\begin{array}{ll}
\text { Sales } & \$ 200,000 \
\text { Supplies } & 90,000 \
\text { Salaries } & 50,000 \
\text { Depreciation } & 5,000 \
\text { Interest on business loan } & 1,000 \
\text { Charitable contributions } & 3,000 \
\text { Advertising } & 4,000 \
\text { Utilities expense } & 6,000 \
\text { Property taxes } & 1,000
\end{array}$ Gain on the sale of
investment land (long-term)$\quad$$\quad$8,000 What are Connie's separately stated items? What is the S corporation's ordinary income?

Question

Connie's Restaurant has been an S corporation since it was formed in 2006. Its results for the previous year are as follows:
 $\begin{array}{ll}
\text { Sales } & \$ 200,000 \
\text { Supplies } & 90,000 \
\text { Salaries } & 50,000 \
\text { Depreciation } & 5,000 \
\text { Interest on business loan } & 1,000 \
\text { Charitable contributions } & 3,000 \
\text { Advertising } & 4,000 \
\text { Utilities expense } & 6,000 \
\text { Property taxes } & 1,000
\end{array}$ Gain on the sale of
 investment land (long-term)$\quad$$\quad$8,000 What are Connie's separately stated items? What is the S corporation's ordinary income?

Quizplus · Accepted Answer

The Answer of Connie's Restaurant has been an S corporation since it was formed in 2006. Its results for the previous year are as follows:
 $\begin{array}{ll}
\text { Sales } & \$ 200,000 \
\text { Supplies } & 90,000 \
\text { Salaries } & 50,000 \
\text { Depreciation } & 5,000 \
\text { Interest on business loan } & 1,000 \
\text { Charitable contributions } & 3,000 \
\text { Advertising } & 4,000 \
\text { Utilities expense } & 6,000 \
\text { Property taxes } & 1,000
\end{array}$ Gain on the sale of
 investment land (long-term)$\quad$$\quad$8,000 What are Connie's separately stated items? What is the S corporation's ordinary income?

Connie's Restaurant Has Been an S Corporation Since It Was