Earl and Sandra own and operate a restaurant as an S corporation. Each is a 50% owner.
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Question:
Earl and Sandra own and operate a restaurant as an S corporation. Each is a 50% owner. The business reports the following results for the year:
Revenue | $ | 480,000 |
Business expenses | 398,000 | |
Investment expenses | 32,000 |
How do Earl and Sandra report these items for tax purposes on each of their individual returns?
Group of answer choices
$82,000 income on Schedule E; $32,000 investment expense on Schedule A.
$480,000 income on Schedule E; $16,000 investment expense on Schedule A.
$41,000 income on Schedule E; $32000 investment expense on Schedule A.
$41,000 income on Schedule E; $16,000 investment expense on Schedule A.
Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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