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Paige owns 1,000 shares of Grubstake Mining & Development common stock. Grubstake is organized as an S corporation and has 100,000 shares outstanding (S corp. ID number 45-4567890). Grubstake reported taxable income of $200,000 and paid a distribution of $1.00 per share during the current year. Paige tells you that Grubstake typically does not send out its K-1 reports until late April. However, its preliminary report (see Exhibit A) has been consistent with the K-1 for many years. Paige does not materially participate in Grubstakes activities.

Enter the Grubstake information through Documents Received/S-Corporation K-1. Do your best. We will be preparing Schedule K-1s next semester!

If you have to override this, it is fine.

She owns 1% of the S-Corporation, so her share of the income is $2,000. Enter her ownership percentage (K-1 Line G), her share of the income (K-1 Line 1), and then the distribution (on Schedule K-1 Line 16 D).

EXHIBIT A

This is important tax information and is being furnished to the Internal Revenue Service.

1099-DIV Dividends and Distributions
Entity	Description	Amount
General Dynamics	Ordinary/qualified dividends	$300
1099-INT Interest
Entity	Description	Amount
New Jersey Economic Development (bonds)	Interest	$300
IBM	Interest	700
State of Nebraska (bonds)	Interest	700
1098 - Mortgage Interest Statement
Entity	Description	Amount
Sunbelt Credit Union	Mortgage interest	$7,100
Northeast Bank	Mortgage interest	435
Form K-1 (preliminary)
Entity	Description	Amount
Grubstake Mining & Development Corp.	Ordinary income	$2,000
	Distribution	1,000

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