taxes

Forum|Forum|2 years ago
September 22, 2023
2 replies
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HILL PRODUCTION HAS 4 SHAREHOLDERS ROWDY AND Q ARE CONSIDERED OFFICERS OF THE CORP-

ORATION

ROWDY HILL 40% WAGES 25,000

Q HILL 40% WAGES 25,000

CAM HILL 10% WAGES 5,200

ALEX HILL 10% WAGES 4160

WHAT WOULD BE THE CORRECT AMOUNT ON LINE 7 OF FORM 1120S

1. 54,200 2. 59,360

3. 63,560

4. 50000

Opus 17

Level 15

I'm afraid the answer is "Do your own homework, please."

Cheers.

Mike9241

Level 15

A corporation determines who is an officer under the laws of the state/country where it is incorporated

all officer compensation gets reported on that line. none of those numbers may be correct. if the S-Corp properly pays the health insurance and certain other fringe benefits such as personal use of company vehicle. these amounts would also be included on line 7, in addition it would be included in box 1 of their w-2s and box 14 of w-2 with a description like S-Corp HIns $$$$$ Auto $YYYYY

the health insurance amount would also reported on line 17AD of k-1.

how did you come up with #3

Mike9241

Opus 17

Level 15

@Mike9241 wrote:

how did you come up with #3

It's a homework question, but the poster didn't copy the whole question. Some information is missing that explains why #3 is the correct answer as the question was originally posed. As posted here, without that missing info, the answer will be different.