Luis Is the Sole Shareholder of a C Corporation, and Eduardo

question 86

Multiple Choice

Luis is the sole shareholder of a C corporation, and Eduardo owns a sole proprietorship. Both businesses were started in 2012, and each business has a long-term capital gain of $20,000 for the year. Neither business made any distributions during the year. With respect to this information, which of the following statements is incorrect?

• A)Eduardo must report a $20,000 long-term capital gain on his 2012 tax return.
• B)Louis's corporation does not receive a preferential tax rate on the $20,000 long-term capital gain.
• C)Luis must report a $20,000 long-term capital gain on his 2012 tax return.
• D)Eduardo receives a preferential tax rate on a long-term capital gain of $20,000.
• E)None of the above.

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Definitions:

Cultural Contexts

The various social, religious, economic, and cultural settings that influence and shape individuals' behaviors, values, and beliefs.

Emotion Regulation

The process by which individuals influence their emotions, how they experience them, and how and when they are expressed.

Differential Emotions

A theory that suggests humans experience a set of basic emotions with unique and distinctive patterns of physiological arousal.

Universal Basic Emotions

refers to a theory suggesting that there are several basic emotions that are universally recognized and experienced by humans regardless of culture.