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Bjorn owns a 60% interest in an S corporation that earned $150,000 in the current year. He also owns 60% of the stock in a C corporation that earned $150,000 during the year. The S corporation distributed $30,000 to Bjorn and the C corporation paid dividends of $30,000 to Bjorn. How much income must Bjorn report from these businesses?

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Answer:

From S corporation = $150,000 × 60% = $90,000

From C corporation = $30,000

Step-by-step explanation:

In the question, it is given that the Bjorn has 60% interest in S corporation which earned the income for $150,000 and the S corporation has distributed the amount for $30,000

So, the Bjorn would reported

From S corporation = $150,000 × 60% = $90,000

From C corporation = $30,000

These two corporations income would be reported by Bjorn

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