Juanita Owns 60% of the Stock in a C Corporation

question 45

Multiple Choice

Juanita owns 60% of the stock in a C corporation that had a profit of $200,000 in 2014.Carlos owns a 60% interest in a partnership that had a profit of $200,000 during the year.The corporation distributed $45,000 to Juanita,and the partnership distributed $45,000 to Carlos.Which of the following statements relating to 2014 is incorrect?

• A)Juanita must report $120,000 of income from the corporation.
• B)The corporation must pay corporate tax on $200,000 of income.
• C)Carlos must report $120,000 of income from the partnership.
• D)The partnership is not subject to a Federal entity-level income tax.
• E)None of the above.

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Definitions:

T-cell Receptors

Molecules found on the surface of T-cells that are responsible for recognizing fragments of antigen as peptides bound to major histocompatibility complex (MHC) molecules.

Foreign Antigens

Substances that are recognized by the immune system as non-self, triggering an immune response.

Self-antigens

Antigens present on the body's own cells; usually tolerated by the immune system.

Transplanted Tissues

Tissues moved from one body and placed into another, either in the same person or between individuals, to replace damaged or defective tissues.