Darnel Owns 10% of the Stock in Allison Company

question 108

Multiple Choice

Darnel owns 10% of the stock in Allison Company. During the current year, Allison has operating income of $200,000 and distributes $80,000 to its owners.
I.If Allison is a corporation, Darnel has $8,000 of income from Allison.
II.If Allison is a partnership, Darnel has $20,000 of income from Allison.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

Identify the types of fringe benefits offered by employers and recognize non-fringe benefits.

Understand the responsibilities and roles of practice managers in HR functions such as hiring, training, and disciplining employees.

Recognize the contents and significance of the office policy manual.

Grasp the standard practices related to employee vacation time, personal time, and the process of updating policy manuals.

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Definitions:

Free Lunch

A metaphorical expression that describes a situation where something is offered for free, implying hidden costs or implications.

Principle

The original sum of money borrowed in a loan, or put into an investment, exclusive of any interest or dividends.

Fossil Fuels

Fossil fuels are natural fuels such as coal, oil, and natural gas derived from the remains of living organisms that have been transformed over millions of years through heat and pressure.

Nonrenewable Energy Sources

Energy resources such as coal, oil, and natural gas that cannot be replenished in a short period of time and will eventually deplete.