This Year, Jiang, the Sole Shareholder of a Calendar Year

question 16

Multiple Choice

This year, Jiang, the sole shareholder of a calendar year S corporation, received a distribution of $17,000. On December 31 of the prior year, his stock basis was $3,000. The corporation earned $12,000 ordinary income during the year. It has no accumulated E&P. Which statement is correct? Ignore the 20% QBI deduction.

• A) Jiang recognizes a $2,000 LTCG.
• B) Jiang's stock basis will be $2,000.
• C) Jiang's ordinary income is $15,000.
• D) Jiang's return of capital is $11,000.

Gain insight into the financial aspects of inventory management, including the cost of capital.

Compare and contrast the fixed quantity and fixed interval versions of the Economic Order Quantity (EOQ) model.

Understand Work-In-Process (WIP) inventories and their role in manufacturing.

Differentiate between dependent and independent demand in inventory management.