A Corporation in Which the Performance of Personal Activities Is

question 73

True/False

A corporation in which the performance of personal activities is the principal pursuit,services are performed by owner-employees,and the owner-employees own 95% or more of the stock is taxed at a flat rate of 35%.

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Definitions:

Partnership Interest

An ownership share in a partnership, representing a partner's stake in the assets and operations of the business.

Ordinary Income

Income earned through wages, salaries, commissions, and interest, which is taxed at standard federal income tax rates.

Dividend Income

Money paid to shareholders out of a corporation's profits.

Current Distribution

This refers to the disbursement of a fund's or company’s earnings to its shareholders or partners.