Question
Fred owns 20% of ABC (a C corporation) that had taxable income of $100,000 and paid a total of $50,000 in dividends to its shareholders.
Fred owns 20% of ABC (a C corporation) that had taxable income of $100,000 and paid a total of $50,000 in dividends to its shareholders. Fred also owns 10% of Small (an S corporation) that had $100,000 of taxable income and distributed a total of $60,000 to its shareholders. How much must Fred include in his gross income as a result of being a shareholder in these two corporations?
| A. | $30,000 | |
| B. | $16,000
| |
| C. | $20,000
| |
| D. | $26,000
|
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Petroleum Accounting Principles Procedures And Issues
Authors: Dennis Jennings, Joe Feiten, Horace Brock
5th Edition
0940966255, 978-0940966253
