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.

Understand the foundational concepts of language development in early childhood.

Identify factors that influence linguistic shifts and bilingualism in young children.

Recognize overregularization as a developmental milestone in language acquisition.

Acknowledge the role of different teaching strategies and educational programs in promoting early literacy and reading achievement.

---

Definitions:

Net Income

The net income of a business following the deduction of all costs and taxes from its overall revenue.

Residual Dividend Policy

A method where dividends are based on earnings minus capital expenditures and working capital needs; basically, dividends are paid from leftover or residual earnings.

Target Capital Structure

The mix of debt, preferred stock, and common equity with which the firm plans to finance its investments. Companies often target a specific structure to optimize their cost of capital.

Capital Requirements

The amount of capital a bank or financial institution must hold to meet regulatory requirements and cover potential losses.