Virginia Is the Sole Shareholder in Barnes Inc

question 72

Multiple Choice

Virginia is the sole shareholder in Barnes Inc., an electing S corporation. During the current year, Barnes has operating income of $64,000, interest income of $10,000 from investments, and passive losses from investments in limited partnerships of $20,000. Barnes Corporation pays $12,000 in dividends. What is Virginia's taxable income from Barnes for the current year?

• A)$12,000
• B)$46,000
• C)$54,000
• D)$74,000
• E)$76,000

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Definitions:

All Mining Rights

The comprehensive legal permissions granted to an individual or organization to explore for and extract minerals from a specific area.

Exclusive Use Areas

Sections of property designated for the private use of an individual or group, limiting access to others.

Condominium Law

The branch of law dealing with the creation, operation, and management of condominiums, including ownership and governance issues.

Dominant Tenement

A parcel of land to which a right-of-way or easement attaches for its better use.