Estella, Inc ​
Calculate Estella's Nonseparately Computed Income

question 20

Essay

Estella, Inc., a calendar year S corporation, incurred the following items during the tax year. $\begin{array}{lr}\text { Municipal bond interest } & \$ 7,000 \\\text { Sales } & 120,000 \\\text { Depreciation recapture income } & 14,000 \\\text { Long-term capital gain } & 20,000 \\\text { Cost of goods sold } & (42,000) \\\text { Administrative expenses } & (15,000) \\\text { Depreciation expense } & (13,000) \\\text { Charitable contributions } & (10,000)\end{array}$ ​
Calculate Estella's nonseparately computed income.

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Definitions:

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Large Red Spot

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