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

Starling Corporation Is a Calendar Year S Corporation AWhat Is Starling Corporation's Taxable Income? B

Starling Corporation Is a Calendar Year S Corporation AWhat Is Starling Corporation's Taxable Income?
B