During the Current Year, Trane Invests $35,000 in Each of Two

question 40

Multiple Choice

During the current year, Trane invests $35,000 in each of two separate corporations. Each investment gives him a 20% ownership interest. Brazil Corporation is a regular corporation that has taxable income of $200,000 and pays dividends totaling $50,000. China Corporation is an S corporation that has taxable income of $100,000 and pays $50,000 of dividends. As a result of these two investments, Trane
I.Has $40,000 of taxable income from Brazil Corporation.
II.Has $20,000 of taxable income from China Corporation.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Job

A paid position of regular employment or a specific task done as part of the routine of one's occupation.

Critical Ratio

is a metric used in project management and operations to assess the urgency of tasks by comparing the time remaining to the total remaining work.

Dispatching Rules

Guidelines or strategies used in production and operations management to prioritize and allocate tasks or jobs to available resources or machines.