7 Question 12 (2 points) Jackson owns 40% interest in Beyond Belief Dance Company, an S-corporation with ordinary operating income of $91,000 in the current year. On weekends, Jackson sometimes performs as a drag queen, selling merchandise for cash at venues and often collects stacks of tips, mostly dollar bills. In January of the current year, Jackson entered his first drag competition at a local bar and ended up winning first prize, $2,400, and a collection of wigs worth $1,400. That night Jackson also sold merchandise for $589 that had cost bim $180, and collected tips totaling $183, mostly in the form of bunched-up dollar hills. What amount of income must Jackson recognize due to these items in the current year? a) $39,392 b) $40,792 c) $40,072 d) $90,562 e) $94,172