Mason owns 45% of an S corporation that reported net income of $105,000 for the year. During the year, $20,000 was distributed to Mason from the corporation. How much should Mason include in his taxable income for the year?
A) $20,000
B) $47,250
C) $56,250
D) $67,250

Question

Quizplus · Accepted Answer

Mason's taxable income is 45% of the S corporation's net income, which is $47,250.

Mason Owns 45% of an S Corporation That Reported Net