Refer to the Graph Shown

question 31

Multiple Choice

Refer to the graph shown. Without government intervention, market forces would result in:

• A)800 labor hours demanded, 800 labor hours supplied, and a wage rate of $6.50 per hour.
• B)500 labor hours demanded, 900 labor hours supplied, and a wage rate of $7.25 per hour.
• C)1,200 labor hours demanded, 500 labor hours supplied, and a wage rate of $4.50 per hour.
• D)500 labor hours demanded, 500 labor hours supplied, and a wage rate of $7.25 per hour.

Describe the eligibility criteria for a corporation to elect Subchapter S status.

Recognize and categorize items that are separately stated on Schedule K-1 for a Subchapter S corporation.

Analyze dividend distributions in the context of corporate earnings and profits, stockholder basis, and determine the categorization of distributions.

Assess financial statement net income adjustments to determine a corporation's taxable income.