Bjorn Owns a 40% Interest in an S Corporation That

question 14

Multiple Choice

Bjorn owns a 40% interest in an S corporation that earned $150,000 in 2008.He also owns 30% of the stock in a C corporation that earned $150,000 during the year.The S corporation distributed $35,000 to Bjorn and the C corporation paid dividends of $35,000 to Bjorn.How much income must Bjorn report from these businesses?

• A)$0 income from the S corporation and $0 income from the C corporation.
• B)$35,000 income from the S corporation and $35,000 income from the C corporation.
• C)$60,000 income from the S corporation and $35,000 of dividend income from the C corporation.
• D)$60,000 income from the S corporation and $0 income from the C corporation.
• E)None of the above.

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Definitions:

Umami

One of the five basic tastes, described as savory or meaty, and associated with foods containing glutamate.

Meaty Taste

Describes a flavor profile reminiscent of meat, often rich and savory, referred to as umami in taste descriptions.

Taste Sensation

The perception derived from the chemical senses as food or other substances interact with taste receptors in the mouth.

Olfaction

The sense of smell, an important chemical sensing system in humans and animals for detecting environmental odors.