Laurie and Lodi Are Dentists Who Have Incorporated Their Practice

question 20

Multiple Choice

Laurie and Lodi are dentists who have incorporated their practice.Laurie owns 60% of the stock of DENT-LL's Corporation and Lodi owns 40%.During the current year,the dentistry corporation has operating income of $125,000,interest income of $22,000 from investments,and losses from investments in limited partnerships of $24,000.The corporation pays $14,000 in dividends.What is DENT-LL's taxable income for the current year?

• A)$73,800
• B)$88,200
• C)$123,000
• D)$133,000
• E)$147,000

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Definitions:

Fixed-price Policy

A pricing strategy where a product or service is sold at a consistent price, regardless of market changes.

Buyers

Entities or groups that acquire products or services for personal consumption, to sell again, or for manufacturing needs.

Real Time

Information technology that processes data as it is received, with very little delay.

One-price Policy

A pricing strategy where a retailer sets a fixed price for all customers, eliminating bargaining or negotiation.