H, an S Corporation, Has Net Ordinary Income from Sales

question 17

Multiple Choice

H, an S corporation, has net ordinary income from sales of its products of $5,000.During the year, H distributes $12,000 cash to P, its sole shareholder.P's basis in H stock, before the net ordinary income and cash distribution are considered, is $4,000 and H owes P $2,000.H has been an S corporation since it was formed.P has includible income from H of

• A)$5,000 ordinary income and $6,000 capital gain
• B)$5,000 ordinary income and $3,000 capital gain
• C)$5,000 ordinary income and $1,000 capital gain
• D)$11,000 ordinary income and zero capital gain
• E)$8,000 ordinary income and zero capital gain

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Definitions:

SSR

In statistics, particularly in regression analysis, SSR could refer to the sum of squared residuals, which measures the discrepancy between the data and an estimation model. NO.

SSE

Sum of Squared Errors, a measure used in statistics to quantify the discrepancy between the data and an estimation model.

Multiple Correlation

This refers to the correlation between one variable and two or more other variables, assessed using the multiple correlation coefficient.

SSR

The sum of squared residuals, indicating the discrepancy between the observed and predicted values in a statistical model.