Elena Owns 40% of Martinez, Inc

question 62

Multiple Choice

Elena owns 40% of Martinez, Inc., a regular C corporation, that reported net income of $80,000 for the year. During the year $8,000 was distributed to Elena from the corporation. How much income from the corporation should Elena include in her taxable income for the year?

• A) $40,000
• B) $32,000
• C) $8,000
• D) $3,200

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Definitions:

Intensity of Competition

The degree of rivalry among firms in a particular market, heavily influencing their pricing, marketing, and product development strategies.

Lobby Government

The act of attempting to influence government officials' decisions or policies, typically conducted by individuals, companies, or organizations.

Restrict Entry

The act of limiting access or entrance into a market or sector to control competition and maintain market power.

Total Profit

The sum of net gains, representing the total revenue from transactions minus the total costs associated with those transactions.