Waters Corporation Is an S Corporation with Two Equal Shareholders

question 9

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: $$\begin{array} { l r } \text { Sales revenue } & \$ 500,000 \\\text { Interest income } & \mathbf { 6 , 0 0 0 } \\\text { Long-term capital gain } & \mathbf { 1 0 , 0 0 0 } \\\text { Cost of goods sold } & ( 250,000 ) \\\text { Salary and wages } & ( \mathbf { 7 5 , 0 0 0 } ) \\\text { Other operating expenses } & ( 55,000 ) \end{array}$$ 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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Institutional Record

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Past Events

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Multicultural Organization

An organization that incorporates and respects diversity in cultures, beliefs, and practices among its members.

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