Rajib Is the Sole Shareholder of Cardinal Corporation, a Calendar

question 14

True/False

Rajib is the sole shareholder of Cardinal Corporation, a calendar year S corporation. In the current year, Cardinal generated a net profit of $350,000 ($520,000 gross income - $170,000 operating expenses) and distributed $80,000 to Rajib. Rajib must report the Cardinal Corporation profit of $350,000 on his Federal income tax return.

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Definitions:

Ductus Deferens

A tube that carries sperm from the epididymis to the ejaculatory ducts in the male reproductive system.

Ejaculatory Duct

Duct formed by the union of the ductus deferens and the excretory duct of the seminal vesicle; opens into the prostatic urethra.

Epididymis

A long, coiled tube that is connected to the posterior surface of the testis, responsible for storing and transporting sperm cells that are produced in the testes.

Seminal Vesicle

One of two glandular structures that empty into the ejaculatory ducts; its secretion is one of the components of semen.