Mason Owns 45% of an S Corporation That Reported Net

question 9

Multiple Choice

Mason owns 45% of an S corporation that reported net income of $105,000 for the year.During the year, $20,000 was distributed to Mason from the corporation.How much should Mason include in his gross income for the year?

• A)$20,000
• B)$47,250
• C)$56,250
• D)$67,250

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Definitions:

Oligopolistic Competition

A market structure in which a few firms dominate. Each firm is aware of the actions of others and may engage in strategic decision making.

Cutthroat Oligopolist

describes a market condition where few firms compete intensely with aggressive pricing and strategies, often to the detriment of all involved.

Concentration Ratio

A measurement used to determine the market share or dominance of the largest firms within an industry.

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market share, often leading to limited competition.