Roberto and Reagan Are Both 25 Percent Owner/managers for Bright

question 64

Multiple Choice

Roberto and Reagan are both 25 percent owner/managers for Bright Light Inc. Roberto runs the retail store in Sacramento, CA, and Reagan runs the retail store in SanFrancisco, CA. Bright Light Inc. generated a $125,000 profit companywide made up of a$75,000 profit from the Sacramento store, a ($25,000) loss from the San Francisco store, and a combined $75,000 profit from the remaining stores. If Bright Light Inc. is an Scorporation, how much income will be allocated to Roberto?

• A) $125,000.
• B) $31,250.
• C) $75,000.
• D) $62,500.

---

Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Stockholders' Equity

The portion of a company's total value that is owned by its shareholders, represented by the company's assets minus its liabilities.

Cumulative

Describing a total that includes all amounts accumulated over a period of time, often used in the context of dividends that are accrued and paid at a later date.

Nonparticipating

Typically refers to insurance policies or investment plans where the holder does not share in profits or dividends beyond specified benefits.