Ms. Mollani owns stock in two S corporations, Aloha and Honu. This year, she had the following income and loss items: 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

Ms. Mollani owns stock in two S corporations, Aloha and Honu. This year, she had the following income and loss items:  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 Ms. Mollani owns stock in two S corporations, Aloha and Honu. This year, she had the following income and loss items:  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.

Ms Mollani Owns Stock in Two S Corporations, Aloha and Honu