Bjorn Owns a 60% Interest in an S Corporation That

question 45

Multiple Choice

Bjorn owns a 60% interest in an S corporation that earned $150,000 in 2012.He also owns 60% of the stock in a C corporation that earned $150,000 during the year.The S corporation distributed $30,000 to Bjorn and the C corporation paid dividends of $30,000 to Bjorn.How much income must Bjorn report from these businesses?

• A)$0 income from the S corporation and $30,000 income from the C corporation.
• B)$30,000 income from the S corporation and $30,000 of dividend income from the C corporation.
• C)$90,000 income from the S corporation and $0 income from the C corporation.
• D)$90,000 income from the S corporation and $30,000 income from the C corporation.
• E)None of the above.

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Definitions:

Pyroclastic Flows

Fast-moving currents of hot gas and volcanic matter (collectively known as tephra) that move away from a volcano during an explosive eruption.

Eruption Column

A column of volcanic ash and gas that erupts into the atmosphere during a volcanic explosion.

Volcanic Mudflows

A fast-moving flow of volcanic materials, water, and debris known as a lahar, typically associated with intense volcanic activity.

Obsidian

A generally gray to black, shiny volcanic glass, usually of felsic composition.