Answer:
- $82000
- $20500
- $750
- Not taxable
Explanation:
with the information provided
A) how the entity's non separately stated income is $82000
to calculate the non separately stated income
(Total long term stated income) - (total short term stated income)
long term stated income
book value = $100000
long term capital loss/gain = $6000
book value + long term capital loss = $106000 ( total long term stated income )
short term stated income
tax exempt = $3000
dividends = $9000
1231 gain = $7000
net passive income = $5000
total short term stated income = 3000 + 9000 + 7000 + 5000 = $24000
hence non separately stated income = $106000 - $24000 = $82000
B) To show how one of he kitsch shareholder is bearing $205000 income or loss
Number of shareholder = 4
non separately stated income = $82000
non separately stated income / number of shareholder = 82000 / 4 =$20500
C)
Tax exempt income = $3000
number of share holders = 4
hence Billings' share of tax exempt interest income = tax exempt income / number of share holders
= $3000 / 4 = $750
Billings income is not taxable this year because his taxable income this year is $20500
