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

question 108

Essay

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?

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Definitions:

Parietal Cells

Cells in the lining of the stomach that produce hydrochloric acid and intrinsic factor, crucial for digestion and B12 absorption.

Goblet Cells

Goblet cells are specialized epithelial cells found in the respiratory and digestive tracts, secreting mucus to lubricate and protect the mucous membranes.

Tube-Within-a-Tube

A body plan characteristic of many animals, where the inner tube represents the digestive tract and the outer tube the body wall, with a cavity in between.

Body Wall

The outermost layer of an organism's body, which provides structural support and protection; in many invertebrates, it consists of a cuticle or exoskeleton.