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:

Confidence Intervals

A sequence of values, garnered from samples, anticipated to cover the value of a yet-to-be-discovered population parameter.

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Central Limit Theorem

A statistical theory that states that the sampling distribution of the sample mean will approach a normal distribution as the sample size becomes larger, regardless of the shape of the population distribution.

Test Statistic

A calculated value from statistical test data used to determine whether to reject the null hypothesis in favor of the alternative hypothesis.