Roberto and Reagan are both 25-percent owner/managers for Bright Light Inc. Roberto runs the retail store in Sacramento, CA, and Reagan runs the retail store in San Francisco, CA. Bright Light Inc. generated a $130,600 profit companywide made up of a $76,600 profit from the Sacramento store, a ($29,000) loss from the San Francisco store, and a combined $83,000 profit from the remaining stores. If Bright Light Inc. is an S corporation, how much income will be allocated to Roberto?
Answer:
As total income of Bright Light Inc is $130600
Roberto holds 25% share in Bright Light Inc. which is S corporation
in S corporation total Income after all deduction and allowances is passed to stakeholder in the ratio they hold share in the Corporation
So Roberto Taxable income here will be = 25% of $130600
= $32650
Roberto and Reagan are both 25-percent owner/managers for Bright Light Inc. Roberto runs the retail store...
Roberto and Reagan are both 25 percent owner/managers for Bright Light Enterprises. Roberto runs the retail store in Sacramento, CA, and Reagan runs the retail store in San Francisco, CA. Bright Light generated a $129,200 profit companywide made up of a $76,200 profit from the Sacramento store, a ($28,000) loss from the San Francisco store, and a combined $81,000 profit from the remaining stores. If Bright Light is taxed as a partnership and decides that Roberto and Reagan will be...
Roberto and Reagan are both 25-percent owner/manager for Bright Light Incorporated. Roberto runs the retail store in Sacramento, California, and Reagan runs the retail store in San Francisco, California. Bright Light Incorporated generated a $126,050 profit company wide made up of a $76,500 profit from the remaining stores. If Bright Light Incorporated is an S corporation, how much income will be allocated to Roberto?