Question

an individual was the sole shareholder and employee of a corporation. in 2019, she received employment income of $50,000 and rental income of $12,000 from the corporation. the corporation earned income of $100,000, after the payment of the two amounts to the individual. what would be her income for 2019? question 12select one: a. $50,000 b. $162,000 c. $62,000 d. it would depend on the year end of the corporation.

Answer 1

The individual's income for 2019 would be $62,000, obtained by adding her employment income ($50,000) and rental income ($12,000) from the corporation.

Step-by-step explanation:

The student's income for 2019 would be the total of her employment income and the rental income she received from the corporation. We add the employment income of $50,000 to the rental income of $12,000, to get a total individual income of $62,000 for the year. The student's income for 2019 would be the total of her employment income and the rental income she received from the corporation. We add the employment income of $50,000 to the rental income of $12,000, to get a total individual income of $62,000 for the year. The corporation's income of $100,000, after the payment of the two amounts to the individual, does not add to her personal income as it is the corporation's earnings and would be subject to corporate taxation.