Silver Inc

question 60

Multiple Choice

Silver Inc.is an S corporation.This year it earned $60,000 of taxable income and paid a $10,000 distribution to Daisy,its sole shareholder.Daisy has a marginal tax rate of 24%.Due to the corporation's results and the distribution paid,the IRS will receive total taxes of

• A)$12,600.
• B)$14,400.
• C)$14,100.
• D)$11,520.

Calculate net cash provided by or used in operating activities using the indirect method.

Distinguish between cash receipts and payments within the cash flow statement's sections.

Understand the impact of non-operating items (like gains or losses) on the calculation of net cash flow.

Learn how to report transactions involving issuance and repurchase of securities in the statement of cash flows.

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