Luis Is the Sole Shareholder of a C Corporation, and Eduardo

question 86

Multiple Choice

Luis is the sole shareholder of a C corporation, and Eduardo owns a sole proprietorship. Both businesses were started in 2012, and each business has a long-term capital gain of $20,000 for the year. Neither business made any distributions during the year. With respect to this information, which of the following statements is incorrect?

• A)Eduardo must report a $20,000 long-term capital gain on his 2012 tax return.
• B)Louis's corporation does not receive a preferential tax rate on the $20,000 long-term capital gain.
• C)Luis must report a $20,000 long-term capital gain on his 2012 tax return.
• D)Eduardo receives a preferential tax rate on a long-term capital gain of $20,000.
• E)None of the above.

Know the role of businesses, communities, and governments in scaling sustainable business practices and making them profitable.

Analyze the challenges and criticisms related to implementing universal standards in sustainability across different nations.

Examine the implications of various Waves of change in socio-economic development for sustainability and how they drive organizational and societal transitions to sustainability.

Understand the various perspectives and theories of ethical behavior in business.

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Definitions:

Direct Labor

The expenses associated with salaries for workers directly involved in the creation or production of products.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, based on standards.

Direct Materials

Materials and supplies directly used in the manufacturing of a product and can be directly traced to the finished product.

Standard Cost Card

A document that details the standard quantities and costs of materials, labor, and overhead for a specific product.