Juanita Owns 60% of the Stock in a C Corporation

question 33

Multiple Choice

Juanita owns 60% of the stock in a C corporation that had a profit of $200,000 in 2013. Carlos owns a 60% interest in a partnership that had a profit of $200,000 during the year. The corporation distributed $45,000 to Juanita, and the partnership distributed $45,000 to Carlos. Which of the following statements relating to 2013 is incorrect?

• A) Juanita must report $120,000 of income from the corporation.
• B) The corporation must pay corporate tax on $200,000 of income.
• C) Carlos must report $120,000 of income from the partnership.
• D) The partnership is not subject to a Federal entity-level income tax.
• E) None of the above.

Explore the dynamic nature of organizational culture and its evolution with changes in team composition and external factors.

Understand the communication perspective of organizational culture.

Learn the significance of jargon in organizational settings.

Comprehend the diverse approaches (purist vs. pragmatist) towards organizational culture.

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Definitions:

Significant Change

A major alteration or transformation in a situation, process, or condition.

Activity Depreciation Method

A method of calculating the depreciation of an asset based on its usage, activities, or units of production rather than the passage of time.

Depreciation Expense

The allocated reduction in the carrying amount of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or other declines in value.

Estimated Life

The anticipated duration for which an asset is expected to be functional and economically viable, dictating its depreciation schedule.