Bread Corporation Is a C Corporation with Earnings of $100,000

question 42

Multiple Choice

Bread Corporation is a C corporation with earnings of $100,000. It paid $20,000 in dividends to its sole shareholder, Gerald. Gerald also owns 100% of Butter Corporation, an S corporation. Butter had net taxable income of $80,000 and made a $15,000 distribution to Gerald. What income will Gerald report from Bread and Butter's activities?

• A)$35,000
• B)$95,000
• C)$100,000
• D)$180,000

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Definitions:

Accumulated Degree Hours

Accumulated degree hours are a unit of measure used in forensic entomology to estimate the postmortem interval (PMI) based on the growth rate of insects at different temperatures.

Incorporate

To include or take in something as part of a whole; to assimilate into a body or structure.

Values

Principles or standards of behavior; one's judgment of what is important in life or in a specific situation.

Pure Substances

Materials that are made of only one type of atom or molecule.