During 2008,Lion Corporation Incurs the Following Transactions

question 39

Multiple Choice

During 2008,Lion Corporation incurs the following transactions.

Lion maintains a valid S election and does not distribute any dividends to its sole shareholder,Penny.As a result,Penny must recognize:

• A)Ordinary income of $103,000 and long-term capital gain of $5,000.
• B)Ordinary income of $103,000, long-term capital gain of $10,000, and $4,000 short-term capital loss.
• C)Ordinary income of $108,000.
• D)None of the above.

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Definitions:

Attribution Theory

is a psychological framework that explores how individuals explain and attribute causes to their own and others' behaviors.

Attitude Theory

A field in social psychology that examines how beliefs, feelings, and behavioral intentions toward objects, people, or events are formed and how they influence behavior.

Actions

The process of acting or doing something towards a goal, often referring to behaviors or movements influenced by conscious or unconscious thought.

Social Norms

Unwritten rules that dictate the behavior of people within a society or group, guiding what is considered acceptable or unacceptable.