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

---

Definitions:

Northern Minnesota

A geographical region in the U.S. state of Minnesota, known for its natural beauty and outdoor activities.

Southern Canada

The region of Canada located closest to the United States border, characterized by its populous cities, milder climate, and economic hubs.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.

Electrical Engineer

A professional skilled in designing, developing, and maintaining electrical systems and components to required specifications, focusing on safety, reliability, and sustainability.