Rayburn Owns All the Shares of Newcastle Corporation That Operates

question 49

Multiple Choice

Rayburn owns all the shares of Newcastle Corporation that operates as an S corporation.Rayburn's basis in the stock is $15,000.During the year he receives a cash distribution of $22,000 from Newcastle.What must Rayburn and Newcastle report as income from the cash distribution?
Rayburn Newcastle

• A)$-0- $-0-
• B)$7,000 $-0-
• C)$-0- $7,000
• D)$7,000 $7,000

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Definitions:

Parasympathetic Nervous System

The part of the autonomic nervous system responsible for relaxation and conserving energy by slowing the heart rate and increasing intestinal and gland activity.

Polygraph

A machine, commonly called a lie detector, that monitors changes in the body, and is used to try to determine whether someone is lying.

Error Rate

The frequency at which errors occur in a process or system, often used as a measure of performance or reliability.

Amygdala

A set of neurons located deep in the brain's medial temporal lobe, playing key roles in the processing of emotions.