SOLVED

73) Connie’s Restaurant has been an S corporation since it was formed in 2006. Its results for the previous year are as follows: Sales             $200,000 Supplies             90,000 Salaries             50,000 Depreciation             5,000 Interest on business loan             1,000 Charitable contributions             3,000 Advertising             4,000 Utilities expense             6,000 Property taxes             1,000 Gain on the sale of investment land (long-term)             8,000 What are Connie’s separately stated items? What is the S corporation’s ordinary income? 74) Power Corporation reports the following results: Service income (not passive income)             $40,000 Dividend income             30,000 Interest income             60,000 Passive income-related expenses             20,000 Other expenses             50,000 At the end of the year, Power’s Subchapter C E&P is $50,000. What is Power Corporation’s excess net passive income and its excess net passive income tax for the year? 75) Chuck Corporation reports the following results for this year: Service (nonpassive) income             $17,500 Dividend income             18,500 Interest income             14,000 Passive income-related expenses             5,000 Other expenses             12,500 At the end of this year, Chuck’s E&P for its C corporation tax years amount to $30,000. Compute Chuck Corporation’s excess net passive income. 76) Potter Corporation reports the following results for the current year: Operating income             $40,000 Dividend income             35,000 Interest income             25,000 Other expenses             25,000 Passive income-related expenses             20,000 At the end of the year, Potter’s Subchapter C E&P is $50,000. What is the amount of Potter’s excess net passive income?