Waters Corporation Is an S Corporation with Two Equal Shareholders $\quad$

question 28

Multiple Choice

Waters Corporation is an S corporation with two equal shareholders, Mia Jones and David Kerns. This year, Waters recorded the following items of income and expense:
Sales revenue $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $500,000
Interest income $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $\quad$ 6,000
Long-term capital gain $\quad$$\quad$$\quad$$\quad$$\quad$ 10,000
Cost of goods sold $\quad$$\quad$$\quad$$\quad$$\quad$ $\quad$ (250,000 )
Salary and wages $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ (75,000 )
Other operating expenses $\quad$$\quad$$\quad$ $\quad$ (55,000 )
Waters distributed $25,000 to each of its shareholders during the year.
-If Mia has no other sources of income, what is her gross income for the year?

• A) $63,000
• B) $60,000
• C) $68.000
• D) $97,500

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Definitions:

Partners

Individuals who enter into a personal relationship, often used in the context of business, marriage, or collaboration.

Secure Attachment

A type of attachment characterized by feelings of safety and security in relationships, often resulting from consistent and caring caregivers.

Hazan and Shaver

A research team that proposed the attachment theory as a framework to understand relationships in adulthood, drawing parallels between infant-caregiver attachments and adult romantic relationships.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something, essential for social relationships and cooperation.