Owen and Jessica Own and Operate an S Corporation $\begin{array}{lll}\text {Business revenue }&\$225,000\\\text {Business expenses }&88,000\\\text {Investment expenses }&16,000\\\end{array}$

Multiple Choice

Owen and Jessica own and operate an S corporation.Each is a 50% owner.The business reports the following results: $\begin{array}{lll}\text {Business revenue }&\$225,000\\\text {Business expenses }&88,000\\\text {Investment expenses }&16,000\\\end{array}$
How do Owen and Jessica report these items for tax purposes?

A) $68,500 income on Schedule E;$16,000 investment expense on Schedule D
B) $68,500 income on Schedule E;$8,000 investment expense on Schedule A
C) $137,000 income on Schedule E;$88,000 investment expense on Schedule A
D) $225,000 income on Schedule E;$16,000 investment expense on Schedule A