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:

Farm Land

Land that is used for agricultural purposes, such as growing crops and rearing livestock.

Supply of Corn

The total amount of corn that producers are willing and able to sell at a given price level in a specific period.

Government Subsidies

Financial assistance provided by the government to support businesses, individuals, or economic sectors.

Ethanol

A volatile, flammable, colorless liquid commonly used as a fuel additive and in alcoholic beverages.