Bread Corporation is a C corporation with earnings of $150,000. It paid $60,000 of dividends to its sole shareholder, Gerald. Gerald also owns 100% of Butter, an S Corporation. Butter had net taxable income of $40,000 and made a $30,000 distribution to Gerald. What total income will Gerald report from Bread and Butter's activities? a. $90,000 b. $190,000 c. $150,000 d. $100,000
Bread Corporation is a C corporation with earnings of $150,000. It paid $60,000 of dividends to its sole shareholder, Gerald. Gerald also owns 100% of Butter, an S Corporation. Butter had net taxable income of $40,000 and made a $30,000 distribution to Gerald. What total income will Gerald report from Bread and Butter's activities? a. $90,000 b. $190,000 c. $150,000 d. $100,000
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 31CE
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![Bread Corporation is a C corporation with earnings of $150,000. It
paid $60,000 of dividends to its sole shareholder, Gerald. Gerald
also owns 100% of Butter, an S Corporation. Butter had net
taxable income of $40,000 and made a $30,000 distribution to
Gerald. What total income will Gerald report from Bread and
Butter's activities?
a. $90,000
b. $190,000
c. $150,000
d. $100,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71e66184-b49a-44b4-867b-2effcba8f92c%2F8eca8c14-6bd9-4d5a-a896-579fcd858ec3%2Ffw61ocp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Bread Corporation is a C corporation with earnings of $150,000. It
paid $60,000 of dividends to its sole shareholder, Gerald. Gerald
also owns 100% of Butter, an S Corporation. Butter had net
taxable income of $40,000 and made a $30,000 distribution to
Gerald. What total income will Gerald report from Bread and
Butter's activities?
a. $90,000
b. $190,000
c. $150,000
d. $100,000
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