Estella, Inc ​
Calculate Estella's Nonseparately Computed Income

question 56

Essay

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

---

Definitions:

Genital Stage

A phase in Freud's psychosexual development theory during which an individual's main source of pleasure is their genital area.

Psychodynamic Theory

A theoretical framework that asserts that human behavior and feelings are deeply influenced by unconscious motives and conflicts.

Cognitive Theory

A theory of psychology that emphasizes internal mental processes as the key to understanding human behavior.

Psychosocial Theory

An approach that emphasizes the importance of social relationships and the complexities of mental and emotional development across one's lifespan.