Bread Corporation is a C corporation with earnings of $100,000. It paid $20,000 in dividends to its sole shareholder, Gerald. Gerald also owns 100% of Butter Corporation, an S corporation. Butter had net taxable income of $80,000 and made a $15,000 distribution to Gerald. What income will Gerald report from Bread and Butter's activities?

A) $35,000
B) $95,000
C) $100,000
D) $180,000


C) $100,000

($80,000 S corporation income + $20,000 dividends)

Business

You might also like to view...

Financial penalties that punish individuals who permit improper transgressions are called ______.

A. means to an end B. give and get policies C. intermediate sanctions D. excess benefit transactions

Business

A notation in the post reference column of the general journal indicates that the amount has been posted to the ledger

Indicate whether the statement is true or false

Business

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:? Net income for the year was$80,000?Accounts payable decreased by 32,000?Accounts receivable increased by 39,000?Inventories increased by 19,000?Depreciation expense was 58,000?Net cash provided by operating activities was:

A. $112,000. B. $48,000. C. $150,000. D. $80,000. E. $74,000.

Business

The _____ denotes the number of standard deviations xi is from the mean

a. variance b. median c. z-score d. normal deviation

Business