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.

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Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, considered a greenhouse gas.

Alveoli

Small, air-filled sacs in the lungs where gas exchange between the air and blood takes place.

Inhaled Air

The mixture of gases that is taken into the lungs during the act of breathing, primarily comprised of nitrogen, oxygen, carbon dioxide, and water vapor.

Throat

The anterior part of the neck, beginning at the oropharynx and extending to the larynx, serving as a pathway for air and food.