Explanation: Owners of Unincorporated Entities Can Be Either Individuals or Corporations.In

question 1

Multiple Choice

Explanation: Owners of unincorporated entities can be either individuals or corporations.In either case, the tax year-end of the entity must match the tax year-end of the owner.
Difficulty: 2 Medium
Topic: Entity Tax Characteristics
Learning Objective: 12-03 Identify fundamental differences in tax characteristics across entity types.
Bloom's: Remember
Accessibility: Keyboard Navigation; Screen Reader Compatible
AICPA/AACSB: BB Critical Thinking / Reflective Thinking
-Roberto and Reagan are both 25-percent owner/managers for Bright Light Inc.Roberto runs the retail store in Sacramento, CA, and Reagan runs the retail store in San Francisco, CA.Bright Light Inc.generated a $125,000 profit companywide made up of a $75,000 profit from the Sacramento store, a ($25,000) loss from the San Francisco store, and a combined $75,000 profit from the remaining stores.If Bright Light Inc.is an S corporation, how much income will be allocated to Roberto?

• A)$31,250
• B)$62,500
• C)$75,000
• D)$125,000

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Definitions:

Louisiana Purchase

The acquisition of the Louisiana territory by the United States from France in 1803, significantly expanding the size of the nation.

Executive Power

The authority to implement and enforce laws, typically vested in a president or prime minister in a governmental system, including responsibilities ranging from military command to diplomatic relations.

Chesapeake Area

A region in the United States that encompasses parts of Virginia and Maryland, notable for its history as a hub for tobacco farming and slavery in the colonial era.

Federalists

A political group in the early United States that advocated for a strong federal government and supported the ratification of the U.S. Constitution.