Firefly Corporation Is a C Corporation

question 82

Multiple Choice

Firefly Corporation is a C corporation.Freya owns all of the stock.During the current year Firefly earned taxable income of $500,000 and paid a $300,000 dividend to Freya.Which of the following statements is correct?

• A)Firefly will pay corporate income tax on its earnings,and Freya will pay individual income tax on the dividends.
• B)Only Firefly will pay taxes.Freya will not pay any taxes due to her holdings in Firefly.
• C)Firefly's income will flow through to Freya's tax return,and she will pay the taxes on the $500,000 of corporate income.
• D)Firefly will not pay any taxes,but Freya will pay taxes on the dividend received.

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Definitions:

Nasogastric (NG) Feeding Tube

A flexible tube that is passed through the nose into the stomach, primarily used for administering nutrition, medications, or to remove stomach contents.

Carbon Dioxide Sensor

A device used to detect and measure the concentration of carbon dioxide in the air or in a closed environment.

Chest Radiograph

A diagnostic imaging test, commonly known as a chest X-ray, used to visualize the structures inside the chest, including the heart, lungs, and bones.

Gastric Residual Volume (GRV)

Gastric Residual Volume (GRV) refers to the amount of content remaining in the stomach after a set period of digestion, used to evaluate gastric emptying in patients receiving enteral nutrition.