Simpco, an S corporation, has gross operating revenue of $450,000, cost of sales of $150,000, salaries and FICA taxes for employees of $40,000, a $25,000 Section 179 expense deduction, $10,000 of other depreciation, interest income of $2,000, a $4,000 capital loss, and a $500 charitable contribution deduction. What are the corporation's net income and its separately stated items?

Question

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The Answer is $450,000 - $150,000 - $40,000 - $10,000 depreciation = $250,000 S corporation net income
Separately stated items: $25,000 Section 179; $4,000 long-term capital loss; $2,000 interest income; $500 charitable contribution

Simpco, an S Corporation, Has Gross Operating Revenue of $450,000