Owen and Jessica Own and Operate an S Corporation

question 88

Multiple Choice

Owen and Jessica own and operate an S corporation.Each is a 50% owner.The business reports the following results: How do Owen and Jessica report these items for tax purposes?

• A) $68,500 income on Schedule E; $16,000 investment expense on Schedule D
• B) $68,500 income on Schedule E; $8,000 investment expense on Schedule A
• C) $137,000 income on Schedule E; $88,000 investment expense on Schedule A
• D) $225,000 income on Schedule E; $16,000 investment expense on Schedule A