Waters Corporation Is an S Corporation with Two Equal Shareholders

question 21

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 distributed $25,000 to each of its shareholders during the year. If Mia has no other sources of income, what is her gross income for the year?

• A) $63,000
• B) $60,000
• C) $68.000
• D) $97,500

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Definitions:

Purchasing Department

A division within a business that is responsible for acquiring goods and services necessary for the organization's operations.

RFP

An acronym for Request for Proposal, a document that solicits proposals, often through a bidding process, by an agency or company interested in procurement of a commodity, service, or valuable asset.

Conciseness

The quality of being brief and to the point, eliminating unnecessary words without sacrificing clarity.

Microblogging

A form of blogging that allows users to write brief text updates (usually less than 200 characters) and publish them, either to be viewed by anyone or by a restricted audience.