For Its Year Ended December 31, 2014, Cupressa Corporation, an S

question 59

Multiple Choice

For its year ended December 31, 2014, Cupressa Corporation, an S corporation, had net income of $216,000 which included $180,000 of ordinary income from operations and a $36,000 net long-term capital gain. During 2014, a total of $90,000 was distributed to the corporation's nine equal shareholders, all of whom are on a calendar-year tax basis. For 2014, each shareholder should report:

• A)$10,000 ordinary income
• B)$20,000 ordinary income
• C)$20,000 ordinary income and $4,000 net long-term capital gain
• D)$24,000 ordinary income
• E)None of the above

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Definitions:

Worker Revolution

A radical overhaul of a society's class structure, typically envisaged by the overthrow of capitalist systems by the working class.

Capitalist Society

A socio-economic system characterized by private ownership of the means of production and the creation of goods or services for profit.

Critique

An analysis or evaluation of a subject, work, or performance, often highlighting its strengths and weaknesses from the critic's perspective.

Communism

An ideology focused on politics and economics that supports a society without classes, where the community collectively owns and manages the means of production.