LO.5, 6 Maul, Inc., a calendar year S corporation, incurred the following items.
Tax-exempt bond interest income $ 7,000
Sales 140,000
Depreciation recapture income 12,000
Long-term capital gain 20,000 §1231 gain 7,000
Cost of goods sold (42,000)
Administrative expenses (15,000)
Depreciation expense (MACRS) (17,000)
Charitable contributions (7,000)
a. Calculate Maul’s nonseparately computed income or loss.
b. If Carl is a 40% owner of Maul, Inc., what is his share of the long-term capital gain?’