Phase 1 Chapters 1-4

3.)Joyce and her brother, Bob, are co-owners of, and active participants in, a furniture restoration business. Joyce owns 30 percent, and Bob owns 70 percent of the business. The business was formed as an S corporation in 2006. During 2014, the company pays $5,300 in dividends. The basis of Joyces stock is $31,000.

Would the answer be $31,000 - 1,590 (30% of the dividends) = $1,590 for Joyce's part?

Joyce's stock is $31,000 and she owns 30% of the business. The company pays out $5,300 in dividends. Therefore, do I deduct 30% of the $5,300 that the company pays out for Joyce's share? And where do I report this on the Form 1040, Schedule B ?