The Business Is a C Corporation and T Is a 50

question 15

Multiple Choice

The business is a C corporation and T is a 50 percent owner.T is single and has no other tax information. Income from services $\quad$$\$ 100,000$
Net capital loss $\quad$ 2,200
Guaranteed compensation paid to $\mathrm { T } \quad 10,000$
Life insurance premium for $\mathrm { T }$ ,
payable to T's children $\quad$ 300
Other operating expenses $\quad 54,000$ The C corporation's taxable income is

• A)$35,700
• B)$33,500
• C)$28,500
• D)$26,900

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Definitions:

Oxygen-Rich Blood

Blood that is high in oxygen concentration, typically found in the arterial system after oxygenation in the lungs.

Liver

A large vital organ in vertebrates responsible for detoxification, protein synthesis, and production of biochemicals necessary for digestion.

Lymphocytes

A type of white blood cell that is one of the main types of immune cells, responsible for producing antibodies to fight off infections.

Lymph Node

Small mass of lymphoid tissue through which lymph filters; contains many B cells and T cells.