Starling Corporation is a calendar year S corporation.For the current year,Starling had the following transactions:
Sales
$800,000
Cost of goods sold
500,000
Interest from City of Rochester bonds
4,000
Payroll
100,000
Charitable contributions
5,000
Long-term capital gains
3,000
Rent expense on business premises
40,000

a.What is Starling Corporation's taxable income?
b.What are the separately stated items?

Question

Starling Corporation is a calendar year S corporation.For the current year,Starling had the following transactions:
Sales
$800,000
Cost of goods sold
500,000
Interest from City of Rochester bonds
4,000
Payroll
100,000
Charitable contributions
5,000
Long-term capital gains
3,000
Rent expense on business premises
40,000
​
a.What is Starling Corporation's taxable income?
b.What are the separately stated items?

Quizplus · Accepted Answer

The Answer of Starling Corporation is a calendar year S corporation.For the current year,Starling had the following transactions:
Sales
$800,000
Cost of goods sold
500,000
Interest from City of Rochester bonds
4,000
Payroll
100,000
Charitable contributions
5,000
Long-term capital gains
3,000
Rent expense on business premises
40,000
​
a.What is Starling Corporation's taxable income?
b.What are the separately stated items?

Starling Corporation Is a Calendar Year S Corporation