Cactus Corporation, an S Corporation, Had Accumulated Earnings and Profits

question 17

Multiple Choice

Cactus Corporation, an S Corporation, had accumulated earnings and profits of $100,000 at the beginning of 2018. Tex and Shirley each own 50% of the stock. Cactus does not make any distributions during 2018, but had $200,000 of ordinary income. In 2019, ordinary income was $100,000 and distributions were $100,000. What is Tex's ordinary income for 2019?

• A)$0
• B)$50,000
• C)$100,000
• D)$200,000

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Definitions:

Consumer's Right

The legal entitlements which protect consumers in the marketplace, ensuring they are treated fairly and safeguarded against fraud.

Shelf Space

The area allocated for products in retail outlets, which can influence sales volume due to visibility and accessibility to consumers.

Economic Espionage

The act of secretly gathering proprietary or economically valuable information about the competition for commercial advantage.

Unethical Behavior

Unethical behavior refers to actions that go against moral principles and standards, often causing harm or disadvantaging others in the social or professional realm.