Bjorn Owns a 60% Interest in an S Corporation That

question 29

Multiple Choice

Bjorn owns a 60% interest in an S corporation that earned $150,000 in 2013. He also owns 60% of the stock in a C corporation that earned $150,000 during the year. The S corporation distributed $30,000 to Bjorn and the C corporation paid dividends of $30,000 to Bjorn. How much income must Bjorn report from these businesses?

• A) $0 income from the S corporation and $30,000 income from the C corporation.
• B) $30,000 income from the S corporation and $30,000 of dividend income from the C corporation.
• C) $90,000 income from the S corporation and $0 income from the C corporation.
• D) $90,000 income from the S corporation and $30,000 income from the C corporation.
• E) None of the above.

Become familiar with the concept of emergent properties in the context of market equilibrium and economic systems.

Understand the definitions and examples of job-specific, practical, work, technical, and task skills.

Comprehend the basics of intrapersonal and interpersonal skills, including problem-solving, critical thinking, communication, teamwork, and conflict resolution.

Recognize and explain the importance of cultural awareness in both national and organizational contexts.

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Definitions:

Geometric Series

An ordered list of numbers where each subsequent number is obtained by multiplying the preceding number by a constant non-zero number known as the ratio.

Infinite

A concept describing something without any limit or end.

Terms

Provisions and requirements detailed in a contract or agreement.

Rational Investor

An individual who makes decisions based on thoughtful consideration of expected outcomes, aiming for the maximization of utility or profit.