The company FPA has the following income, expense, and loss items for the current year: Sales $850,000 Tax-exempt interest $40,000 Long-term capital gain $85,000 Short-term capital loss $35,000...

Sole Proprietorship
    Sole Proprietorship
    Tax form(s) that should be completed for the business activity:
    1040 Schedule c, schedule d.
    Business Activity            $
    Sales             $ 850,000.00
    Cost of goods sold            $ (480,000.00)
    Depreciation            $ (40,000.00)
    179 Expense            $ (50,000.00)
    Other operating expense            $ (200,000.00)
             Income    $80,000.00
    Separately Stated Items:            $        Explanation
    Long term captial gain            85,000        Should be reported under Schedule D
    Short term captial loss            35,000        Should be reported under Schedule D, Net capital gain can be derived from deducting capital loss from capital gain.
    Passive activity loss            20,000        This activity loss needs to deduct from passive activity income only.
    Tax exempt interest            40,000        This income will be shown in 1040 form but it will not added in the gross income.
                        Because this income is exempted from tax.
    Net operating loss (last year)            24,000        This loss will reported under 1040 form schedule 1, it will deduct from additional income.
    All the items above mentioned are not include to determine sole porperietorship taxable income.
    because it has to impact in the individual return.
Pship
    Partnership
    Tax form(s) that should be completed for the business activity:
    Form 1065 and schedule d
    Business Activity            $
    Business Activity            $
    Sales             $ ...