Question: Question 2 (3 points) Mohamed owns 25% of Red Corp, an S-corporation. In 2019, Red Corp earned $100,000 of taxable income and distributed a total
Question 2 (3 points) Mohamed owns 25% of Red Corp, an S-corporation. In 2019, Red Corp earned $100,000 of taxable income and distributed a total of $60,000 to its shareholders. Mohamed also owns 30% of Blue Corp. a C-corporation. In 2019, Blue Corp earned taxable income of $100,000 and paid a total of $50,000 in dividends to its shareholders. How much income must Mohamed include in his gross income as a result of being a shareholder in these two corporations? a) $30,000 b) $45,000 c) $40,000 d) $50,000 Oe) $55,000 by
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