Barbara owns 40% of the stock of Cassowary Corporation (a C corporation) and 40% of...
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Accounting
Barbara owns 40% of the stock of Cassowary Corporation (a C corporation) and 40% of the stock of Emu Corporation (an S corporation). In the current year, each corporation has operating income of $120,000 (before income tax expense) and tax-exempt interest income of $8,000. Neither corporation pays any dividends during the year. Complete the statements below regarding how this information will be reported by the corporations and Barbara for the current year. the Since C corporations are entities, Cassowary Corporation will operating income and tax-exempt income. An S corporation is a will report ordinary business income of $ and tax-exempt interest income of $ entity. Therefore
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