Alvin Is the Sole Shareholder of an S Corporation That

question 74

True/False

Alvin is the sole shareholder of an S corporation that earned $200,000 in 2016 and distributed $75,000 to Alvin.Alvin must recognize $75,000 as income from the S corporation in 2016.

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Definitions:

Sever

To cut off, remove, or divide a part of something, often used in legal contexts to describe the separation or termination of legal rights or duties.

Chattels

Personal property or movable possessions, as opposed to real property which includes land and buildings.

Intangible Property

Assets that do not have a physical presence yet hold value, such as intellectual property, copyrights, patents, and trademarks.

Chose in Action

A personal right to property which can only be claimed or enforced through legal action, not by taking physical possession.