Bjorn Owns a 60% Interest in an S Corporation That

question 53

Multiple Choice

Bjorn owns a 60% interest in an S corporation that earned $150,000 in 2014.He also owns 60% of the stock in a C corporation that earned $150,000 during the year.The S corporation distributed $30,000 to Bjorn and the C corporation paid dividends of $30,000 to Bjorn.How much income must Bjorn report from these businesses?

• A)$0 income from the S corporation and $30,000 income from the C corporation.
• B)$30,000 income from the S corporation and $30,000 of dividend income from the C corporation.
• C)$90,000 income from the S corporation and $0 income from the C corporation.
• D)$90,000 income from the S corporation and $30,000 income from the C corporation.
• E)None of the above.

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Definitions:

Supine Position

Laying horizontally with the face and torso facing up, commonly used in medical contexts.

Mammogram

An X-ray photograph of the breast used to detect tumors or other abnormalities.

COPD

Chronic Obstructive Pulmonary Disease, a progressive lung disease that makes it hard to breathe due to obstructed airflow.

Menopause

The permanent cessation of menstruation.