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Earl and Sandra own and operate a restaurant as an S corporation. Each is a...

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Accounting

Earl and Sandra own and operate a restaurant as an S corporation. Each is a 50% owner. The business reports the following results for the year:

Revenue $ 480,000
Business expenses 398,000
Investment expenses 32,000

How do Earl and Sandra report these items for tax purposes on each of their individual returns?

Group of answer choices

$82,000 income on Schedule E; $32,000 investment expense on Schedule A.

$480,000 income on Schedule E; $16,000 investment expense on Schedule A.

$41,000 income on Schedule E; $32000 investment expense on Schedule A.

$41,000 income on Schedule E; $16,000 investment expense on Schedule A.

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