Which of the Following Income Items from an S Corporation

question 140

Multiple Choice

Which of the following income items from an S corporation is not considered investment income for purposes of the net investment income tax?

• A)Passive income
• B)Investment interest income
• C)Dividends
• D)Short-term capital gains
• E)All of these choices are considered investment income for the net investment income tax.

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Definitions:

Pay-For-Performance

Pay-For-Performance is a compensation strategy where employees' compensation is directly linked to their performance or achievements.

Organizational Productivity

The measure of how efficiently and effectively an organization uses its resources to achieve its goals.

Gain Sharing

A performance-based compensation model where employees receive bonuses or rewards based on the productivity improvements or successes of their organizational unit.

Skill-Based Pay

A compensation system that rewards employees for the skills and knowledge they possess, rather than the position they hold.