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Roberto and Reagan are both 25-percent owner/manager for Bright Light Incorporated. Roberto runs the retail store...

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?

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Answer #1
In S corporation the net income is not specifically distributed to shareholders
Therefore to Roberto the net income allocated would be from company wide net income multiplied by its share
Net income allocated to roberto 126050*25%
Net income allocated to roberto $31,512.50
Thus, net income allocated to roberto is $31,512.50
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