Jane has the following income and losses for the current year: ($1,500) loss fro

Question

Jane has the following income and losses for the current year:

($1,500) loss from a 30% interest in Laminate Partnership in which she does not materially participate.

($500) loss from a .2% limited partnership interest in Venture, a limited partnership.

($2,400) loss from a 12% interest in an S corporation in which she manages one of the departments.

$32,000 salary as manager with an S corporation.

$600 of dividend income from Higher Mutual Fund.

What is Jane's Adjusted Gross Income (AGI)?

a. $28,200

b. $30,000

c. $30,200

d. $32,000

e. $32,600

Explanation / Answer

$32,000 salary as manager with an S corporation + $600 of dividend income from Higher Mutual Fund =32600

Less: ($2,400) loss from a 12% interest in an S corporation in which she manages one of the departments

Jane's Adjusted Gross Income (AGI) = 32600 – 2400 = $ 30200

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