What amount of dividends is reported on schedule k


Problem: CPC Inc., a C corporation with accumulated earnings and profits, elected to be an S corporation four years ago. In the current tax year, gross receipts total $200,000, which included $80,000 of passive investment income ($30,000 dividends and $50,000 from rents). Since CPC is in the electronics business, all rental income is passive. Expenditures directly connected with production of the passive investment income total $39,000, consisting of $4,000 in broker fees and $35,000 in rental expenses. CPC also has $90,000 in non-separately stated business deductions and $5,000 in charitable contributions. (Round to the nearest dollar.)

Question: What amount of dividends is reported on Schedule K (Form 1120-S) as passed through to the shareholders?

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Accounting Basics: What amount of dividends is reported on schedule k
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