(Solution) - EndLand Company reports the following results for the current ye -(2025 Original AI-Free Solution)

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EndLand Company reports the following results for the current year:
Gross profit from sales ................ $350,000
Dividends received (less than 20% ownership) ........ 40,000
Long-term capital loss ................. 60,000
Salaries paid to employees ............... 70,000
Salaries paid to owners ................ 130,000
Investment expenses ................... 10,000
Depreciation (including $40,000 expensed under Section 179) . 90,000
Charitable contributions .................. 30,000

a. Assume that EndLand is a partnership owned by Kira (60%) and Justin (40%). Kira receives a salary of $70,000, and Justin receives a salary of $60,000. The salaries are not guaranteed payments. Determine the tax treatment of EndLand?s operating results and the effects of the results on Kira and Justin.
b. Assume the same facts as in part a, except that EndLand is a corporation. Determine the tax treatment of EndLand?s operating results and the effect of the results on Kira and Justin.
c. Assume the same facts as in part b, except that EndLand is an S corporation. Determine the tax treatment of EndLand?s operating results and the effect of the results on Kira and Justin.