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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