Bread Corporation Is a C Corporation with Earnings of $100,

Question 13
Multiple Choice

Bread Corporation is a C corporation with earnings of $100,000.It paid $20,000 in dividends to its sole shareholder,Gerald.Gerald also owns 100% of Butter Corporation,an S corporation.Butter had net taxable income of $80,000 and made a $15,000 distribution to Gerald.What income will Gerald report from Bread and Butter's activities? A) $35,000 B) $95,000 C) $100,000 D) $180,000