Owen and Jessica Own and Operate an S Corporation

Multiple Choice

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

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