Dixon Corporation Was Incorporated on January 1, 2005

question 16

Multiple Choice

Dixon Corporation was incorporated on January 1, 2005. The corporation made its S election on April 1, 2008. The corporation retains an E&P balance from its C corporation days. Which one of the following current-year income and expense items is not included in Dixon Corporation's Accumulated Adjustments Account?

• A)ordinary income or loss
• B)tax-exempt bond interest income
• C)long-term capital gains and losses
• D)amortization of organizational expenditures

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Definitions:

Hydrogen Ions

Positively charged ions (protons) of hydrogen, H+, which play a significant role in acid-base balance and cellular metabolism.

Plasma Membrane

A bi-layer of lipids and proteins that surrounds a cell, controlling the movement of substances in and out of the cell.

Electrons

Negatively charged subatomic particles that orbit the nucleus of an atom.

Electron Transport Chain

A sequence of structures that move electrons from donors to acceptors through oxidation-reduction processes, simultaneously facilitating the movement of hydrogen ions across a membrane.