Estella, Inc., a calendar year S corporation, incurred the following items during the tax year. $$\begin{array} { l r }
\text { Municipal bond interest } & \$ 7,000 \
\text { Sales } & 120,000 \
\text { Depreciation recapture income } & 14,000 \
\text { Long-term capital gain } & 20,000 \
\text { Cost of goods sold } & ( 42,000 ) \
\text { Administrative expenses } & ( 15,000 ) \
\text { Depreciation expense } & ( 13,000 ) \
\text { Charitable contributions } & ( 10,000 ) \
20 \% \text { QBI deduction } & 4,370
\end{array}$$ Calculate Estella's nonseparately computed income.

Question

Estella, Inc., a calendar year S corporation, incurred the following items during the tax year. $$\begin{array} { l r } 
\text { Municipal bond interest } & \$ 7,000 \
\text { Sales } & 120,000 \
\text { Depreciation recapture income } & 14,000 \
\text { Long-term capital gain } & 20,000 \
\text { Cost of goods sold } & ( 42,000 ) \
\text { Administrative expenses } & ( 15,000 ) \
\text { Depreciation expense } & ( 13,000 ) \
\text { Charitable contributions } & ( 10,000 ) \
20 \% \text { QBI deduction } & 4,370
\end{array}$$ Calculate Estella's nonseparately computed income.

Quizplus · Accepted Answer

The Answer of Estella, Inc., a calendar year S corporation, incurred the following items during the tax year. $$\begin{array} { l r } 
\text { Municipal bond interest } & \$ 7,000 \
\text { Sales } & 120,000 \
\text { Depreciation recapture income } & 14,000 \
\text { Long-term capital gain } & 20,000 \
\text { Cost of goods sold } & ( 42,000 ) \
\text { Administrative expenses } & ( 15,000 ) \
\text { Depreciation expense } & ( 13,000 ) \
\text { Charitable contributions } & ( 10,000 ) \
20 \% \text { QBI deduction } & 4,370
\end{array}$$ Calculate Estella's nonseparately computed income.

Estella, Inc Calculate Estella's Nonseparately Computed Income