Water Cycle is a three (3) owner company, legally organized as a limited liability company and its owners own a one third stake each. The entity has chosen to pay tax as a company. During 2020, the entity generated gross income of $ 1,500,000, and incurred operating expenses of $ 200,000 and a cost of goods sold of $ 400,000.

Calculate the net income from operations for 2020. Present your figures. Determine who is taxed on net operating income. Explain and present your computations.