Watts Owns Stock in Two S Corporations, MKP Corporation and Reynolds

question 37

Multiple Choice

Watts owns stock in two S corporations, MKP Corporation and Reynolds Inc. This year, Ms. Watts had the following income and loss items.
Salary $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $ 113,700
Business income from MKP $\quad$$\quad$$\quad$$\quad$ $ 42,000
Business loss from Reynolds $\quad$$\quad$$\quad$$\quad$ $ (28,000 )
If Ms. Watts materially participates in the business of both corporations, compute her AGI.

• A) $85,700
• B) $113,700
• C) $127,700
• D) $155,700

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Definitions:

Vivid Dreams

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A condition that makes it hard to fall asleep or remain asleep throughout the night.

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The cognitive ability to process information in a logical, linear order, often necessary for tasks such as reading or problem-solving.