Tomas Owns a Sole Proprietorship, and Lucy Is the Sole

question 53

True/False

Tomas owns a sole proprietorship, and Lucy is the sole shareholder of a C corporation. In the current year, both businesses make a net profit of $60,000. Neither business distributes any funds to the owners in the year. For the current year, Tomas must report $60,000 of income on his individual tax return, but Lucy is not required to report any income from the corporation on her individual tax return.

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Definitions:

Abortion

The medical or surgical termination of a pregnancy before the fetus is capable of independent life.

Peripheral Route

One of the two paths of persuasion according to the Elaboration Likelihood Model, where people are influenced by superficial cues rather than detailed message content.

Tangentially Relevant

Pertains to a matter or subject that is slightly or indirectly related to the core issue or focus.

Statistics

The science dealing with the collection, analysis, interpretation, and presentation of numerical data.