Laurie and Lodi Are Dentists Who Have Incorporated Their Practice

Multiple Choice

Laurie and Lodi are dentists who have incorporated their practice.Laurie owns 60% of the stock of DENT-LL's Corporation and Lodi owns 40%.During the current year,the dentistry corporation has operating income of $125,000,interest income of $22,000 from investments,and losses from investments in limited partnerships of $24,000.The corporation pays $14,000 in dividends.What is DENT-LL's taxable income for the current year?

A) $73,800
B) $88,200
C) $123,000
D) $133,000
E) $147,000