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

question 115

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) $100,000
• C) $95,000
• D) $180,000

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