Cactus Corporation, an S Corporation, Had Accumulated Earnings and Profits

question 98

Multiple Choice

Cactus Corporation, an S Corporation, had accumulated earnings and profits of $100,000 at the beginning of 2011. Tex and Shirley each own 50% of the stock. Cactus does not make any distributions during 2011, but had $200,000 of ordinary income. In 2012, ordinary income was $100,000 and distributions were $100,000. What is Tex's ordinary income for 2012?

• A) $200,000
• B) $100,000
• C) $50,000
• D) $0

Identify and evaluate the strengths and criticisms of the cognitive approach to personality.

Grasp the objectives and applications of Kelly's Rep Test in understanding personal constructs.

Understand the complexities and social dynamics of leadership.

Comprehend the process theories of work motivation and factors influencing work motivation.

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Definitions:

Lottery

A lottery is a form of gambling which involves drawing lots for a prize, or the allocation of a resource or a chance event resulting in a significant gain to the holder.

Von Neumann-Morgenstern

A theory of expected utility that serves as a foundational framework in the field of game theory, describing strategies for rational decision-making under uncertainty.

Expected Utility

The sum of the utilities associated with all possible outcomes, weighted by the probability of each outcome occurring.

Probability

The quantification of the probability that an event will happen, represented by a number ranging from 0 to 1, with 0 signifying an impossible event and 1 signifying a certain event.