Bjorn Owns a 60% Interest in an S Corporation That

question 53

Multiple Choice

Bjorn owns a 60% interest in an S corporation that earned $150,000 in 2014.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.

---

Definitions:

College Education

A level of education that follows the completion of a school providing a secondary education, such as a high school, consisting mainly of the study toward a degree or diploma.

Advanced Degrees

Academic degrees obtained beyond a bachelor's degree, such as master's or doctoral degrees.

Gender Differences

Variations in the attitudes, behaviors, and capabilities typically associated with men and women, often studied in the context of social and workplace settings.

Leadership Roles

Responsibilities or functions assumed by individuals in leadership positions to guide, direct, and influence the behavior and work of others.