24. The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income.Selling expenses $ 21,200Tax-exempt interest income 3,000Dividends received 9,000 §1231 gain 7,000Depreciation recapture income 11,000Recovery of bad debts previously deducted 5,000Long-term capital loss (6,000)Salary paid to owners (each) (12,000)Cost of goods sold (91,000)a. Compute Kitsch’s nonseparately stated income or loss for the tax year.b. What would be the share of this year’s income or loss items for James Billings, one of the Kitsch shareholders?30. Tiger, Inc., a calendar year S corporation, is owned equally by four shareholders: Ann, Becky, Chris, and David. Tiger owns investment land that was purchased for $160,000 four years ago. On September 14, when the land is worth $240,000, it is distributed to David. Assuming that David’s basis in his S corporation stock is $270,000 on the distribution date, discuss any Federal income tax ramifications.34. Cougar, Inc., is a calendar year S corporation. Cougar’s Form 1120S shows nonseparately stated ordinary income of $80,000 for the year. Johnny owns 40% of the Cougar stock throughout the year. The following information is obtained from the corporate records.Tax-exempt interest income $ 3,000Salary paid to Johnny (52,000)Charitable contributions (6,000)Dividends received from a foreign corporation 5,000Short-term capital loss (6,000)Depreciation recapture income 11,000Refund of prior state income taxes 5,000Cost of goods sold (72,000)Long-term capital loss (7,000)Administrative expenses (18,000)Long-term capital gain 14,000Selling expenses (11,000)Johnny’s beginning stock basis 32,000Johnny’s additional stock purchases 9,000Beginning AAA 31,000Johnny’s loan to corporation 20,000a. Compute Cougar’s book income or loss.b. Compute Johnny’s ending stock basis.c. Calculate Cougar’s ending AAA balance.37. At the beginning of the tax year, Lizzie holds a $10,000 stock basis as the sole shareholder of Spike, Inc., an S corporation. During the year, Spike reports the following.Determine Lizzie’s stock basis at the end of the year, and the treatment of her cash distribution.Net taxable income from sales $ 25,000Net short-term capital loss (18,000)Cash distribution to Lizzie, 12/31 15,000Could you make sure to answer in your own words