Tomas Owns a Sole Proprietorship, and Lucy Is the Sole

question 53

True/False

Tomas owns a sole proprietorship, and Lucy is the sole shareholder of a C corporation. In the current year, both businesses make a net profit of $60,000. Neither business distributes any funds to the owners in the year. For the current year, Tomas must report $60,000 of income on his individual tax return, but Lucy is not required to report any income from the corporation on her individual tax return.

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Definitions:

Natural Birth

A process of childbirth that minimizes medical intervention and promotes a natural delivery process.

Voluntary Protection Programs

A cooperative program between employers and the OSHA (Occupational Safety and Health Administration) that encourages companies to exceed the minimum safety standards.

Medical Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.

Private Protection Plans

Insurance programs or policies offered by private entities to provide individuals coverage against specific risks or losses, distinct from government schemes.