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Jake Is the Sole Shareholder of an S Corporation That

question 46

True/False

Jake is the sole shareholder of an S corporation that earned $60,000 in 2014.The corporation was short on cash and therefore distributed only $15,000 to Jake in 2014.Jake is required to recognize $60,000 of income from the S corporation in 2014.

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Definitions:

Cost-Per-Contact Basis

A method of advertising budget allocation that considers the cost of reaching an individual member of the target audience.

Indirectly Paid

A form of compensation or remuneration not made directly through monetary payments but through other benefits or services.

Wasted Coverage

Advertising or marketing effort that reaches an audience not interested in the product, resulting in inefficient spending.

Personal Selling

A sales approach involving direct interaction between a salesperson and a potential customer, usually aimed at persuading the customer to make a purchase.

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