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

question 28

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 a 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:

Augmented Matrix

In linear algebra, an augmented matrix is obtained by appending the columns of two or more matrices, typically for the purpose of performing the same elementary row operations on each matrix.

Order

In mathematics, the arrangement or sequence of objects or numbers according to a specific rule, or the degree of a polynomial or differential equation.

Matrix

A rectangular array of numbers, symbols, or expressions, arranged in rows and columns, used in solving systems of linear equations and other mathematical operations.

Solution

The solution or solutions that make an equation, inequality, or system of equations true.