NEIU Corporation is a C corporation with earnings of $500,000. It paid $150,000 in dividends to...

NEIU Corporation is a C corporation with earnings of $500,000. It paid $150,000 in dividends to its sole shareholder, Victor. Victor also owns 100% of BiCarbon Corporation, an S corporation. BiCarbon had net taxable income of $75,000 and made a $25,000 distribution to Victor. What income will Victor report from NEIU and BiCarbon's activities?

A) $75,000

B) $150,000

C) $175,000

D) $225,00

Solutions

Expert Solution

Answer: option C) is correct. i.e $175,000

Total Income Victor can report is total distribution made by should company to her . The NEIU company distribute dividend worth $20,000 and $15,000 normal distribution.

So total income she reports = $150,000 + $25,000

= $175,000.

Total Income she reports from NEIU corporation is $175,000.

ekkarill92 answered 1 year ago

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