Mason Owns 45% of an S Corporation That Reported Net

question 49

Multiple Choice

Mason owns 45% of an S corporation that reported net income of $105,000 for the year. During the year, $20,000 was distributed to Mason from the corporation. How much should Mason include in his taxable income for the year?

• A) $20,000
• B) $47,250
• C) $56,250
• D) $67,250

Determine the cost of goods sold using available financial information from manufacturing operations.

Recognize and categorize extraordinary and infrequent items in financial statements according to GAAP.

Understand the principles and implications of changes in accounting principles and estimates.

Identify and explain the components and importance of comprehensive income.

---

Definitions:

Raw Material Procurement

The process of acquiring the basic materials needed for production or manufacturing.

Supply Chain Management

The oversight and management of the flow of goods and services, including all processes that transform raw materials into final products.

Sophisticated Information Technology

Advanced systems and tools that manage, process, and disseminate large volumes of data efficiently, supporting complex analysis and decisions.

Supply Chain Manager

A professional responsible for overseeing and managing the entire supply chain operations to ensure efficiency, cost-effectiveness, and timely delivery of goods or services.