Juanita Owns 60% of the Stock in a C Corporation

question 36

Multiple Choice

Juanita owns 60% of the stock in a C corporation that had a profit of $200,000 in the current year.Carlos owns a 60% interest in a partnership that had a profit of $200,000 during the year.The corporation distributed $45,000 to Juanita,and the partnership distributed $45,000 to Carlos.With respect to this information,which of the following statements is incorrect?

• A)Juanita must report $120,000 of income from the corporation.
• B)The corporation must pay corporate tax on $200,000 of income.
• C)Carlos must report $120,000 of income from the partnership.
• D)The partnership is not subject to a Federal entity-level income tax.
• E)None of the above.

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Definitions:

Workplace Behavior

The conduct, actions, and attitudes of individuals within an organizational setting that influence the work environment's culture and productivity.

Title VII

Part of the Civil Rights Act of 1964 prohibiting employment discrimination based on race, color, religion, sex, or national origin.

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