Elena Owns 40% of Martinez, Inc

Multiple Choice

Elena owns 40% of Martinez, Inc., a regular C corporation, that reported net income of $80,000 for the year. During the year $8,000 was distributed to Elena from the corporation. How much income from the corporation should Elena include in her taxable income for the year?

A) $40,000
B) $32,000
C) $8,000
D) $3,200