Rachel Is the Sole Member of an LLC,and Jordan Is

question 20

Multiple Choice

Rachel is the sole member of an LLC,and Jordan is the sole shareholder of a C corporation.Both businesses were started in the current year,and each business has a long-term capital gain of $10,000 for the year.Neither business made any distributions during the year.With respect to this information,which of the following statements is correct?

• A)The C corporation receives a preferential tax rate on the LTCG of $10,000.
• B)The LLC must pay corporate tax on taxable income of $10,000.
• C)Jordan must report $10,000 of LTCG on his tax return.
• D)Rachel must report $10,000 of LTCG on her tax return.
• E)None of the above.

---

Definitions:

Perceiving

The process of becoming aware of something through the senses, a key element in how individuals understand and navigate their environment.

Forgotten Material

Information or memories that an individual is unable to recall, potentially repressed or lost over time due to various psychological factors.

Collective Unconscious

A concept in Jungian psychology that refers to the part of the unconscious mind which is shared among beings of the same species and contains archetypes.

Personal Unconscious

A term in analytical psychology referring to all information that is present within an individual's mind, but not consciously acknowledged.