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Dawn Is the Sole Shareholder of Thrush Corporation, a Calendar

question 46

Essay

Dawn is the sole shareholder of Thrush Corporation, a calendar year C corporation. In the current year, Thrush earned $350,000 and distributed $75,000 to Dawn. Kirk is the sole shareholder of Swallow Corporation, an S corporation. In the current year, Swallow earned $350,000 and distributed $75,000 to Kirk. Contrast the tax treatment of Thrush Corporation and Dawn with the tax treatment of Swallow Corporation and Kirk.


Definitions:

Aggressiveness

Hurting others and putting them on the defensive.

Spatial Intelligence

The ability to comprehend, reason, and remember the spatial relations among objects or space.

Kinesthetically Intelligent

The capacity to use one's body effectively to perform physical tasks, often associated with high bodily-kinesthetic intelligence.

Payoff

The benefit, reward, or return received as a result of an investment or action.

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