During the current year, Skylark Company had operating profit of $150,000. In addition, Skylark had a...

During the current year, Skylark Company had operating profit of $150,000. In addition, Skylark had a long-term capital loss of $10,000. Toby is the sole owner of Skylark Company. Please answer the following. Be sure to label each answer with the identifying number of the question. You can separate each answer with a comma. Type the word none is the amount is zero. Do not enter the number 0 or you will be marked wrong! Scenario 1: Skylark is a single-member LLC reporting on Schedule C, and Toby does not withdraw any funds from the company during the year. Enter None if the answer is 0. a. Toby will show how much ordinary income on his 1040 Schedule C? __________ b. Toby will deduct how much capital loss on his 1040 assuming he has no other capital gain and losses? ______ Scenario 2: Skylark is a regular (C) corporation, and Toby does not withdraw any funds from the company during the year. Enter None if the answer is 0. c. What is the total amount Toby will show on his 1040

the year from Skylark? ________ Scenario 3: Skylark is a regular (C) corporation, and Skylark makes a cash distribution of $100,000 to Toby during the year. Enter None if the answer is 0. d. Toby will report how much income on his 1040 for the year from Skylark?______ e. Skylark Corporation will report taxable income of how much for the year on their 1120? ______ Scenario 4: Skylark is a regular (C) corporation, and Skylark pays a salary of $100,000 to Toby during the year. Show the income reported by Toby on his individual income tax return from Skylark Company. Enter None if the answer is 0. f. Toby will report how much income on his 1040 for the year from Skylark?______ g. Skylark Corporation will report taxable income of how much for the year on their 1120? ______

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