LO5 Ramona owns 20% of the stock of Miller, Inc. Miller reports the following items for the current year:

What are the effects on Ramona’s taxable income if Miller, Inc., is organized as

a. A corporation?

b. An S corporation?

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Sales $3,400,000 Gain on sale of stock held for 2 years 250,000 Cost of goods sold 1,800,000 Operating expenses 900,000 Dividends paid to stockholders 180,000