Eggington Enterprises,Inc

question 1

Multiple Choice

Eggington Enterprises,Inc.,made $22,000,000 in profits in 2016.Eggington paid $3,000 per share to its shareholders.Jeff Goldstein owns one share of Eggington.Which of the following is true?​

• A)​Eggington pays taxes on the $22,000,000 and Jeff does not need to pay on his dividend distribution.
• B)​Eggington pays taxes only on the amounts not distributed to the shareholders.
• C)Eggington does not owe taxes because it is incorporated.
• D)Eggington pays taxes on the $22,000,000 and Jeff pays taxes on his $3,000 in dividends.

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Definitions:

Store Owner

An individual or entity that owns and manages a retail business establishment.

Carpets Left

Refers to the quantity of carpets that remain unsold or available in inventory.

Economic Profit

The distinction between the sum of all income and the total of all expenses, encompassing both direct and indirect costs.

Fixed Costs

Costs that do not vary with the level of production or sales, including expenses like rent and salaries.