The Vanity Corporation Organized and Began Operations in January

question 68

Essay

The Vanity Corporation organized and began operations in January. The corporation's ten equal shareholders elect to have Vanity taxed as an S corporation, and the election and necessary consents are filed in a timely manner. For its first tax year ended December 31, Vanity has ordinary income of $64,000 and short-term capital gains of $16,000. During the year, it distributes $30,000 in cash equally to its ten shareholders. For the year, how much income should each shareholder report and how should it be characterized?

---

Definitions:

Semantic Web

An extension of the World Wide Web that enables machines to understand the meaning of information on the web, through the use of standardized formats.

Linked Data

A method of publishing structured data so that it can be interlinked and become more useful through semantic queries.

Inability To Share

The restriction or limitation within a system, software, or platform that hampers the sharing of files, data, or resources among users or devices.

Add A Tab

Creating an additional segment or section within an application's user interface for organizing content or data.