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Minna Is a 50% Owner of a Calendar- Year S

question 2188

Essay

Minna is a 50% owner of a calendar- year S corporation. During the current year, the S corporation had ordinary income of $400,000, short- term capital gain of $150,000 and a charitable contribution of $30,000. What does Minna report for the year from the S corporation?


Definitions:

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life.

Bond Investment

An investment in debt securities issued by corporations or governments to finance their operations.

Other Comprehensive Income

Other Comprehensive Income represents revenues, expenses, gains, and losses not included in net income, and reflects changes in equity during a period except those resulting from investments by and distributions to owners.

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