An S Corporation with Substantial AEP Has Operating Revenues of $410,000,taxable

question 144

Multiple Choice

An S corporation with substantial AEP has operating revenues of $410,000,taxable interest income of $390,000,operating expenses of $260,000,and deductions attributable to the interest of $150,000.The § 1375 penalty tax payable,if any,is:

• A)$0.
• B)$40,923.
• C)$116,923.
• D)$136,500.
• E)None of the above.

Recognize the challenges and benefits of decentralization, including potential suboptimal decisions and duplication of services.

Identify the factors influencing the establishment of transfer prices and their impact on organizational goal congruence.

Understand the concept of opportunity cost and its significance in managerial decision making.

Understand the importance and components of responsibility accounting in decentralized organizations.