Rachel Is the Sole Member of an LLC,and Jordan Is

question 20

Multiple Choice

Rachel is the sole member of an LLC,and Jordan is the sole shareholder of a C corporation.Both businesses were started in the current year,and each business has a long-term capital gain of $10,000 for the year.Neither business made any distributions during the year.With respect to this information,which of the following statements is correct?

• A)The C corporation receives a preferential tax rate on the LTCG of $10,000.
• B)The LLC must pay corporate tax on taxable income of $10,000.
• C)Jordan must report $10,000 of LTCG on his tax return.
• D)Rachel must report $10,000 of LTCG on her tax return.
• E)None of the above.

---

Definitions:

Edmund Burke

A British statesman, philosopher, and author of the 18th century known for his support of the American Revolution and criticisms of the French Revolution.

Established Order

Represents the existing power structures or social norms that govern society, often resisted or challenged by various social movements.

Estates-General

A legislative body in pre-revolutionary France, made up of representatives of the three estates: the clergy, the nobility, and the common people.

Clergy

Individuals ordained for religious duties in Christian and other religious traditions, playing vital roles in spiritual guidance, worship, and community leadership.