Robin is a 50% shareholder in Robin-Wren,an S corporation.Robin-Wren earned net income of $100,000 during the year,and Robin received a distribution of $35,000 from the corporation.Robin must report a $35,000 dividend on his individual Federal income tax return (Form 1040).

Question

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The shareholders of an S corporation report their shares of the entity's net income or loss,regardless of how much of the income was withdrawn from the corporation.Robin must report income of $50,000.

Robin Is a 50% Shareholder in Robin-Wren,an S Corporation