A Calendar Year Business Was Operated as a C Corporation $\quad$

question 43

Multiple Choice

A calendar year business was operated as a C corporation from 1998 through 2006, and as an S corporation since January, 2007.Its account balances at the end of 2011 are 1998-06 accumulated earnings and profits $\quad$$\$ 3,000$
2007-10 accumulated adjustment account $\quad$ 2,000
2011 net ordinary income $\quad$$\quad$ 5,000
2011 cash distributions to $\mathrm { G } \quad 12,000$ G, the sole shareholder, had a basis in her stock of $4,000 at the beginning of 2011.G is single and has no other tax information.G's A.G.I.is

• A)$12,000
• B)$10,800
• C)$8,000
• D)$2,900
• E)Some other amount, which is $____________

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Definitions:

Schedule A

A form used for itemizing deductions on a U.S. individual income tax return, including taxes paid, interest, gifts to charity, and other deductible expenses.

Property Tax

A rephrased definition: A levy on property that the owner is required to pay, usually collected by local governments, based on the property's value.

Sales Tax

A tax imposed by a government on the sale of goods and services.

Adjusted Gross Income

An individual's total gross income minus specific deductions, crucial for determining taxable income.