Juanita Owns 45% of the Stock in a C Corporation

question 31

Multiple Choice

Juanita owns 45% of the stock in a C corporation that had a profit of $120,000 in 2011. Carlos owns a 45% interest in a partnership that had a profit of $120,000 during the year. The corporation distributed $20,000 to Juanita, and the partnership distributed $20,000 to Carlos. Which of the following statements relating to 2011 is incorrect?

• A) Juanita must report $20,000 of income from the corporation.
• B) The corporation must pay corporate tax on $120,000 of income.
• C) Carlos must report $20,000 of income from the partnership.
• D) The partnership is not subject to a Federal entity-level income tax.
• E) None of the above.

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Definitions:

Risky Sexual Behavior

Engaging in sexual activities that increase the risk of contracting sexually transmitted infections and unintended pregnancies.

Sexually Transmitted Infections

Sexually transmitted infections are infections that are primarily spread through sexual contact, including viruses and bacteria such as HIV, HPV, chlamydia, and gonorrhea.

Teenage Pregnancy

Pregnancy occurring in young women who are in their teenage years, often presenting unique social, economic, and health challenges.

Parenting Style

The emotional climate and strategies used by parents in raising their children, classified into categories like authoritarian, authoritative, permissive, and uninvolved.