Multiple Choice
Jen and Saachi are the owners of J&S Legal Services,P.C.,an incorporated law firm treated as a C corporation for tax purposes.Jen and Saachi work full-time in the firm,performing all of the legal services.This year,J&S generates taxable income of $100,000 from the active business operations,and also reports investment interest income of $22,000 and losses of $28,000 from a passive activity.As a result,J&S Legal Services,P.C.reports taxable income of
A) $122,000.
B) $100,000.
C) $94,000.
D) $97,000.
Correct Answer:
Verified
Correct Answer:
Verified
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