Gofer Corporation, an S Corporation, Is Owned Equally by Mahmoud

question 48

Essay

Gofer Corporation, an S corporation, is owned equally by Mahmoud and Kwame. The corporation had long-term capital gains of $100,000 and ordinary income of $90,000 for the current year and made no distributions. What is the amount of ordinary income from S corporation activities that Mahmoud must report?

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Definitions:

Contract-Law Issues

Disputes or concerns that arise in the creation, interpretation, or enforcement of agreements between parties.

Sovereign Immunity

A legal doctrine that exempts governments and their agencies from being sued without their consent.

Act Of State Doctrine

A principle that a nation's domestic actions are not to be questioned or challenged by the courts of another nation.

Principle Of Comity

A legal doctrine allowing courts within one jurisdiction to respect the laws and judicial decisions of another jurisdiction out of courtesy, rather than obligation.