Jake Is the Sole Shareholder of an S Corporation That

question 84

True/False

Jake is the sole shareholder of an S corporation that earned $60,000 in 2015.The corporation was short on cash and therefore distributed only $15,000 to Jake in 2015.Jake is required to recognize $60,000 of income from the S corporation in 2015.

Understand the concept of flotation costs and how they impact financial decisions.

Comprehend the definitions and differences between pure play and subjective approaches to calculating the Weighted Average Cost of Capital (WACC).

Learn the definition and calculation method for the Weighted Average Cost of Capital (WACC).

Understand the assumptions behind using market values in WACC computation, and the rationale for these assumptions.

---

Definitions:

Pecking Order

A hierarchy of status seen among members of a group of people or animals, often dictated by power, rank, or social standing.

Social Class Concept

A categorization of individuals and groups based on various factors including wealth, occupation, and education, reflecting their position within a societal hierarchy.

Achieved Status

A social position that a person earns or chooses, reflecting personal skills, abilities, and efforts.

Ascribed Status

A social position assigned to an individual at birth or assumed involuntarily later in life, not a result of personal achievement.