Tomas Owns a Sole Proprietorship, and Lucy Is the Sole

question 53

True/False

Tomas owns a sole proprietorship, and Lucy is the sole shareholder of a C corporation. In the current year, both businesses make a net profit of $60,000. Neither business distributes any funds to the owners in the year. For the current year, Tomas must report $60,000 of income on his individual tax return, but Lucy is not required to report any income from the corporation on her individual tax return.

---

Definitions:

Appreciated in Value

An increase in the worth of an asset or currency over time.

Balance of Payments

A record of all economic transactions between the residents of a country and the rest of the world in a given period.

Financial Account

A component of a country's balance of payments that records investments and transactions of financial assets between residents and non-residents.

Positive Number

A number greater than zero, indicating a quantity or value that is above the neutral or zero point on a scale.