Bjorn Owns a 60% Interest in an S Corporation That

question 35

Multiple Choice

Bjorn owns a 60% interest in an S corporation that earned $150,000 in the current year.He also owns 60% of the stock in a C corporation that earned $150,000 during the year.The S corporation distributed $30,000 to Bjorn and the C corporation paid dividends of $30,000 to Bjorn.How much income must Bjorn report from these businesses?

• A)$0 income from the S corporation and $30,000 income from the C corporation.
• B)$30,000 income from the S corporation and $30,000 of dividend income from the C corporation.
• C)$90,000 income from the S corporation and $0 income from the C corporation.
• D)$90,000 income from the S corporation and $30,000 income from the C corporation.
• E)None of the above.

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Definitions:

25th Percentile

A value below which 25% of the data falls.

75th Percentile

A value below which 75% of the data points in a dataset fall, used as a measure of dispersion.

Symmetric Data

Data that are evenly distributed around the center, showing mirror-image properties on both sides of the median.

Interquartile Range

The difference between the 75th (third quartile) and 25th (first quartile) percentiles, measuring the spread of the middle 50% of data.