For the Calendar Year, Elk Corporation, an S Corporation, Has

question 73

Essay

For the calendar year, Elk Corporation, an S corporation, has book income of $55,000, which includes $45,000 from operations and a $10,000 net long-term capital gain. During the year, $22,500 is distributed to Elk's three equal shareholders, all of whom are calendar-year taxpayers. What are Elk's total ordinary income and capital gain pass-throughs for the year?

---

Definitions:

Morpheme

The smallest grammatical unit in a language that carries semantic meaning, which cannot be further divided without losing or altering its meaning.

Conveys Meaning

Refers to the process by which messages or information are communicated and understood by individuals.

Fluid Intelligence

The ability to solve new problems, use logic in new situations, and identify patterns.

Logical-Mathematical Intelligence

The capacity to understand logical reasoning and problem solving in mathematics, part of Howard Gardner's theory of multiple intelligences.