Aaron Is the Sole Shareholder and CEO of ABC, Inc

question 52

Multiple Choice

Aaron is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $325,000 after deducting Aaron's $100,000 salary. In addition to his compensation, ABC pays Aaron dividends of $250,000. What is Aaron's qualified business income?

• A) $-0-.
• B) $100,000.
• C) $250,000.
• D) $325,000.
• E) None of these.

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Definitions:

Employment Act of 1967

U.S. legislation aimed at promoting maximum employment, production, and purchasing power, often associated with measures to combat unemployment and inflation.

Corporate Philanthropy

Effort of an organization to make a contribution to the communities in which it earns profits.

Public Radio Station

A radio station that is funded by public means, such as government grants and listener donations, rather than commercial advertising.

Local Property Taxes

Taxes levied by local governments on real estate and sometimes other property, based on the assessed value of the property, used to fund public services and infrastructures.