Which item is not included in an S corporation's nonseparately computed income?
A) Net sales.
B) Cost of goods sold.
C) Dividends received.
D) Depreciation recapture.
E) All of these are included in non-separately computed income.

Question

Quizplus · Accepted Answer

Dividends received are typically reported separately on an S corporation's tax return and are not included in the nonseparately computed income. Nonseparately computed income generally includes items like net sales, cost of goods sold, and depreciation recapture, which are integral to the calculation of the corporation's overall taxable income.

Which Item Is Not Included in an S Corporation's Nonseparately