Ms Watts Owns Stock in Two S Corporations, MKP Corporation

question 92

Multiple Choice

Ms. Watts owns stock in two S corporations, MKP Corporation and Reynolds Inc. This year, Ms. Watts had the following income and loss items. $$\begin{array} { | l | c | } \hline \text { Salary } & \$ 113,700 \\\hline \text { Business income from MKP } & \$ 42,000 \\\hline \text { Business loss from Reynolds } & \$ ( 28,000 ) \\\hline\end{array}$$ 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:

IOL

An acronym for Intraocular Lens, a synthetic lens implanted in the eye to replace the eye's natural lens often during cataract surgery.

Anisocoria

A condition characterized by unequal pupil sizes in the eyes.

Radial Keratotomy

A surgical procedure to correct nearsightedness (myopia) involving tiny incisions in the cornea to alter its shape and improve vision.

Intraocular Pressure

The fluid pressure inside the eye, critical for maintaining eye shape and proper optical function.