Ted Owns 20% of Genco (A C Corporation) That Had

question 16

Multiple Choice

Ted owns 20% of Genco (a C corporation) that had taxable income of $100,000 and paid a total of $50,000 in dividends to its shareholders.Ted also owns 10% of Subco (an S corporation) that had $100,000 of taxable income and distributed a total of $60,000 to its shareholders.How much must Ted include in his gross income as a result of being a shareholder in these two corporations?

• A)$16,000
• B)$20,000
• C)$26,000
• D)$30,000

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Definitions:

Food Diary

A journal used to record the intake of food and beverages over a certain period, often used for monitoring nutritional intake or diet planning.

BMI

Body Mass Index, a numerical computation comparing a person's weight and height to categorize underweight, normal weight, overweight, or obesity.

Persistent Nausea

Continuous or frequently recurring feelings of sickness with an inclination to vomit.

Dehydration

A condition resulting from the excessive loss of body water, affecting bodily functions.