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:

Foreclosure Status

In psychology, particularly Eriksonian theory, foreclosure status refers to an uncritical acceptance of parental or societal values without exploring personal identity.

Moratorium Status

A stage in identity development where an individual is actively exploring options but has not yet made a commitment to any particular identity or path.

Occupation

A person's usual or principal work or business, especially as a means of earning a living; a profession or job.

Malignancies

The presence of cancerous cells that have the ability to invade and destroy healthy tissue.