An S Corporation Reports $10,000 DPGR and $7,500 of Wages,and

question 15

Multiple Choice

An S corporation reports $10,000 DPGR and $7,500 of wages,and the S corporation's QPAI is $2,500.Shelly has a 50% interest in the S corporation.All expenses that reduce DPGR are from wages,and all wages paid relate to DPGR.How much QPAI and wages are allocated to Shelly?

• A)$1,250 QPAI and $3,750 wages.
• B)$2,500 QPAI and $7,500 wages.
• C)$1,250 QPAI and $1,875 wages.
• D)$2,500 QPAI and $1,875 wages.
• E)None of the above.

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Definitions:

Labor Productivity

The measurement of economic growth within a country, which represents the amount of goods and services produced by one hour of labor.

Increases

A term denoting a rise or growth in quantity, size, intensity, or level of something.

Industrial Policy

Governmental strategies aimed at encouraging development and growth in the industrial sector of an economy through a mix of policies including subsidies, tax incentives, and investments in infrastructure and innovation.

Government Policy

The set of laws and regulations enacted by government officials that affect the operations of a country or region.