Salem Inc Is an Electing S Corporation with Current Year Operating

question 78

Multiple Choice

Salem Inc. is an electing S corporation with current year operating income of $300,000. The $300,000 does not include the amount it realized on the sale of a building for $330,000. The building was purchased in 2004 for $250,000 and $20,000 in straight-line depreciation had been taken on the building up to the date of its sale. How should Salem Inc. report these results to its shareholders?

• A)Operating income of $320,000 and Section 1231 gain of $80,000.
• B)Operating income of $400,000.
• C)Operating income of $304,000 and Section 1231 gain of $96,000.
• D)Operating income of $380,000 and unrecaptured Section 1250 gain of $20,000.
• E)Operating income of $300,000 and Section 1231 gain of $80,000 and unrecaptured Section 1250 gain of $20,000.

Understand the importance of reinforcement schedules in learning new behaviors.

Analyze the role of influence tactics in managerial effectiveness.

Recognize the concept of power in organizational relationships and its different sources.

Understand the basis and impact of leadership theories, including path-goal and behaviorism.