Mollani owns stock in two S corporations, Aloha and Honu. This year, she had the following income and loss items:
Salary $ 45,000
Business income from Aloha $ 12,000
Business loss from Honu $ (17,000 )
Compute Ms. Mollani's AGI under each of the following assumptions.
a. She materially participates in Aloha's business but not in Honu's business.
b. She materially participates in Honu's business but not in Aloha's business.
c. She materially participates in both corporate businesses.
d. She does not materially participate in either business.

Question

Mollani owns stock in two S corporations, Aloha and Honu. This year, she had the following income and loss items: 
Salary $ 45,000 
Business income from Aloha $ 12,000 
Business loss from Honu $ (17,000 )
Compute Ms. Mollani's AGI under each of the following assumptions.
a. She materially participates in Aloha's business but not in Honu's business.
b. She materially participates in Honu's business but not in Aloha's business.
c. She materially participates in both corporate businesses.
d. She does not materially participate in either business.

Quizplus · Accepted Answer

The Answer of Mollani owns stock in two S corporations, Aloha and Honu. This year, she had the following income and loss items: 
Salary $ 45,000 
Business income from Aloha $ 12,000 
Business loss from Honu $ (17,000 )
Compute Ms. Mollani's AGI under each of the following assumptions.
a. She materially participates in Aloha's business but not in Honu's business.
b. She materially participates in Honu's business but not in Aloha's business.
c. She materially participates in both corporate businesses.
d. She does not materially participate in either business.

Mollani Owns Stock in Two S Corporations, Aloha and Honu