Which of the Following Is Not a Separately Stated Item

question 40

Multiple Choice

Which of the following is not a separately stated item for S corporations?

• A) Dividends.
• B) Interest income.
• C) Charitable contributions.
• D)Investment interest expense.
• E)All of these are separately stated items.

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Definitions:

Tax Implications

The effects that various financial decisions and actions have on the amount of tax an individual or business owes to the government.

Proportionate Ownership

The share of ownership in a company or property based on the percentage of shares or units held relative to the total outstanding.

Shareholder's Wealth

The value of a company to its shareholders, often measured by the price of its shares multiplied by the number of shares outstanding.

Stock Split

A change in the number of shares outstanding by issuing new shares in proportion to those already owned. All stockholders’ proportionate ownership is maintained, and no economic value is created. Used to keep stock prices within a desirable trading range.