Shareholder in the two corporations


Ted owns 20% of Genco (a C corporation) that had taxable income of $100,000 and paid a total of $50,000 in dividends to its shareholders. Ted also owns a 10% of Subco (an S corporation) that had $100,000 of taxable income and distributed a total of $60,000 to its shareholders. How much must Ted include in his gross income as a result of being a shareholder in these two corporations?

a) $16,000

b) $20,000

c) $26,000

d) $30,000

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Accounting Basics: Shareholder in the two corporations
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