Refer to the Following Table

question 99

Multiple Choice

Refer to the following table.Assume that Keisha keeps quiet.Larry will spend ________ years in jail if he confesses,and ________ years in jail if he also keeps quiet.

• A) 12; 1.5
• B) 1.5; 12
• C) 0; 12
• D) 12; 12
• E) 0; 1.5

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Definitions:

Rental Activity

Engaging in leasing out property as a business or investment, generating income from tenants paying rent.

Flow-Through Entity

A legal business entity where income flows through to investors or owners; the entity itself is not taxed but the individuals receiving the income are.

C Corporation

A legal structure for a corporation where the owners, or shareholders, are taxed separately from the entity.

Sole Proprietorship

A business structure in which one individual owns all of the company's assets, is responsible for its debts, and reports its business income on their personal tax return.