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:

Tuberosity

A large rounded projection on a bone, often serving as a site for muscle or ligament attachment.

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone, commonly known as the collarbone.

Scapula

The Scapula, commonly known as the shoulder blade, is a flat, triangular bone located on the back of the shoulder, connecting the humerus with the clavicle.