J and H Each Have Always Owned 50 Percent of the Stock

question 3

Multiple Choice

J and H each have always owned 50 percent of the stock of a calendar-year S corporation that was previously operated as a C corporation.Accounts at the beginning of the current year are shown below: $\begin{array} { l }&\text { Corporate Accounts }&\text { Stock Basis }\\A A A P T I&A E \& P&OAA&J&H\\10,000&\$8,000&\$1,200&0&\$15,000&\$10,000\end{array}$
During the year, operations show tax-exempt interest income of $5,000, net ordinary income of $20,000, and cash distributions of $40,000.What are J and H's stock basis at the end of the year?

• A)J = $10,400 H = $5,400
• B)J = $ 5,400 H = $ 400
• C)J = $8,100H = $3,100
• D)J = $ 6,700 H = $1,700

Understand the arguments for and against the effectiveness of deterrence in reducing crime.

Recognize the philosophical foundations of utilitarian and retributive theories of punishment.

Examine the roles that incapacitation, rehabilitation, and deterrence play in the criminal justice system.

Identify and assess the challenges and criticisms related to the application of various punishment theories.

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Definitions:

Fixed Costs

Expenses that do not vary with the volume of output, including costs like rent, salaries, and insurance premiums.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, indicating its profitability.

Variable Costs

Costs that vary directly with the level of production or volume of output.

Break-even

The point at which total cost and total revenue are equal, resulting in no net loss or gain.