Bjorn Owns a 60% Interest in an S Corporation That

question 29

Multiple Choice

Bjorn owns a 60% interest in an S corporation that earned $150,000 in 2013. 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:

Exposure Therapy

A psychological treatment designed to help individuals confront their fears by gradual, controlled exposure to the feared object, activity, or situation.

Anxiety Elimination

Anxiety elimination refers to strategies or treatments aimed at reducing or removing the feelings of anxiety and its physiological and psychological manifestations.

Modeling

Modeling is a learning technique where individuals learn behaviors, attitudes, or emotional expressions through the observation of others.

Relational Psychoanalytic Therapy

A therapeutic approach that emphasizes the importance of interpersonal relationships and the therapist-client relationship in psychological development and healing.