Which Type of Distribution from an S Corporation Is Taxed

question 38

Multiple Choice

Which type of distribution from an S corporation is taxed at ordinary income rates?

• A) AAA.
• B) OAA
• C) AEP
• D) None of the above items is taxed as ordinary income.

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Definitions:

Population

The total set of individuals or items of interest for statistical, analytical, or research purposes.

Per Annum

An expression meaning "for each year," used to describe rates or amounts calculated on an annual basis.

Rate Of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.

Investment Account

An account held at a financial institution that holds investments such as stocks, bonds, mutual funds, and other assets for investors.