Which Item Is Not Included in an S Corporation's Nonseparately

question 108

Multiple Choice

Which item is not included in an S corporation's nonseparately computed income?

• A) Net sales.
• B) Cost of goods sold.
• C) Dividends received.
• D) Depreciation recapture.
• E) All of the above are included in non-separately computed income.

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Definitions:

Output Contract

An agreement in which a seller agrees to sell all the production to a particular buyer, who agrees to purchase it.

Requirements Contract

A contract in which one party agrees to supply as much of a good or service as the other party needs during a specified period.

Bilateral Contract

A type of contract involving two parties where each party has made a promise to the other.

Promise

An assurance given by one party to another, agreeing to do or not do something specified in the future.