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

question 6

Multiple Choice

Roberto and Reagan are both 25-percent owner/managers for Bright Light Incorporated. Roberto runs the retail store in Sacramento, California, and Reagan runs the retail store in San Francisco, California. Bright Light Incorporated generated a $127,800 profit companywide made up of a $75,800 profit from the Sacramento store, a ($27,000) loss from the San Francisco store, and a combined $79,000 profit from the remaining stores. If Bright Light Incorporated is an S corporation, how much income will be allocated to Roberto?

• A)$31,950.00.
• B)$63,900.00.
• C)$75,800.00.
• D)$127,800.00.

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Definitions:

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