Claudia Owns 10% of the Stock of Fitness Design Corporation

Multiple Choice

Claudia owns 10% of the stock of Fitness Design Corporation, an S corporation. She is also its controller. Fitness Design reports taxable income of $70,000 and pays $60,000 in dividends to shareholders before considering Claudia's salary. Claudia receives a $75,000 salary. What is Claudia's income from Fitness Design?

A) $6,000
B) $74,500
C) $75,000
D) $81,000
E) $82,000