Examlex

Solved

Waters Corporation Is an S Corporation with Two Equal Shareholders,Mia

question 53

Multiple Choice

Waters Corporation is an S corporation with two equal shareholders,Mia Jones and David Kerns.This year,Waters recorded the following items of income and expense: Waters Corporation is an S corporation with two equal shareholders,Mia Jones and David Kerns.This year,Waters recorded the following items of income and expense:     Waters distributed $25,000 to each of its shareholders during the year.Calculate the S corporation's ordinary (non-separately stated) income and indicate which items must be separately stated. A) Ordinary income,$126,000; long-term capital gain is separately stated. B) Ordinary income,$120,000; interest income and long-term capital gain are separately stated. C) Ordinary income,$136,000; nothing is separately stated. D) Ordinary income,$195,000; interest income,long-term capital gain,and salary costs are separately stated. Waters Corporation is an S corporation with two equal shareholders,Mia Jones and David Kerns.This year,Waters recorded the following items of income and expense:     Waters distributed $25,000 to each of its shareholders during the year.Calculate the S corporation's ordinary (non-separately stated) income and indicate which items must be separately stated. A) Ordinary income,$126,000; long-term capital gain is separately stated. B) Ordinary income,$120,000; interest income and long-term capital gain are separately stated. C) Ordinary income,$136,000; nothing is separately stated. D) Ordinary income,$195,000; interest income,long-term capital gain,and salary costs are separately stated. Waters distributed $25,000 to each of its shareholders during the year.Calculate the S corporation's ordinary (non-separately stated) income and indicate which items must be separately stated.


Definitions:

Enabling Statutes

Laws that provide the legal framework and authority for government agencies or bodies to implement regulations and actions.

Administrative Statutes

Laws established by government agencies that detail how the agencies are to administer and enforce the laws passed by the legislature.

Federal Administration Statutes

refers to laws enacted by the federal government that govern the organization, functions, and actions of federal agencies and administrative bodies.

Federal Administrative Law Judges

Officials who preside over hearings and make decisions on disputes within federal agencies, operating under administrative law.

Related Questions