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Problem 1: Roberto and Reagan are both 25 percent owner/managers for Bright Light Inc. Roberto runs the retail store in Sacramento, CA, and Reagan runs the retail store in San Francisco, CA. Bright Light Inc. generated a $130,950 profit companywide made up of a $76,700 profit from the Sacramento store, a ($29,250) loss from the San Francisco store, and a combined $83,500 profit from the remaining stores. If Bright Light Inc. is an S corporation, how much income will be allocated to Roberto?
Option 1: $32,737.50. Option 2: $65,475.00. Option 3: $76,700.00. Option 4: $130,950.00.
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