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.

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Definitions:

Sample Proportion

The fraction of the sample that represents a particular outcome or characteristic.

Confidence Interval

A range of values derived from sample statistics that is likely to contain the value of an unknown population parameter.

Sample Variance

A measure of the dispersion or spread of data points in a sample, calculated by taking the average of the squared differences from the mean.

Central Limit Theorem

A statistical theory stating that the distribution of sample means will approximate a normal distribution as the sample size becomes large, regardless of the population's distribution.