Match the Term with the Proper Response

question 29

Short Answer

Match the term with the proper response. There may be more than one responses for each term.
a.Includes gross receipts derived from royalties, passive rents, dividends, interest, etc.
b.Penalty tax to stop an S corporation from avoiding the corporate tax on disposition of appreciated property.
c.Cumulative total of undistributed non-separately stated items.
d.Tax-free distribution.
e.Generated under old S corporation rules (pre-1983).
f.Items that affect basis but not AAA go here.
g.Taxed as a dividend.
-Built-in gain tax

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Definitions:

IRR

Internal Rate of Return, a metric used in financial analysis to estimate the profitability of potential investments.

MIRR

Modified Internal Rate of Return (MIRR) is a financial measure that adjusts the traditional internal rate of return (IRR) to account for the cost of capital and reinvestment of cash flows.

Reinvestment Rate

The percentage rate at which future cash flows from an investment are assumed to be reinvested, affecting the calculation of metrics like Net Present Value (NPV).

NPV

Net Present Value; a calculation used to determine the current value of a series of future cash flows by discounting them at a specific rate.