Owen and Jessica Own and Operate an S Corporation

question 59

Multiple Choice

Owen and Jessica own and operate an S corporation.Each is a 50% owner.The business reports the following results: Business revenue $ 225,000
Business expenses 88,000
Investment expenses 16,000
How do Owen and Jessica report these items for tax purposes?

• A)$225,000 income on Schedule E; $16,000 investment expense on Schedule A
• B)$68,500 income on Schedule E; $8,000 investment expense on Schedule A
• C)$68,500 income on Schedule E; $16,000 investment expense on Schedule D
• D)$137,000 income on Schedule E; $88,000 investment expense on Schedule A

---

Definitions:

Vestibulocochlear Nerve

The eighth cranial nerve, responsible for hearing and balance.

Wisdom Teeth

The last set of molars that most people get in their late teens or early twenties, often removed if misaligned or causing discomfort.

Chewing

The act of breaking down food with the teeth to aid in the digestive process.

Trigeminal Nerve

The fifth cranial nerve responsible for sensory data from the face and head, and motor functions such as biting and chewing.