Chapter 2 quiz - Quiz Chapter 2 True/False Indicate whether...

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Quiz Chapter 2 True/False Indicate whether the statement is true or false. ____ 1. Olga’s proprietorship earned a net profit of $95,000 during the year and she withdrew $70,000 of this profit. Olga must report $70,000 net income from the proprietorship on her individual income tax return (Form 1040). ____ 2. Donald owns a 40% interest in a partnership that earned $140,000 in the current year. He also owns 40% of the stock in a C corporation that earned $140,000 during the year. Donald received $30,000 in distributions from each of the two entities during the year. With respect to this information, Donald must report $60,000 of income on his individual income tax return for the year. ____ 3. Quail Corporation is a C corporation with net income of $300,000 during 2010. If Quail paid dividends of $50,000 to its shareholders, the corporation must pay tax on $300,000 of net income. Shareholders must re- port the $50,000 of dividends as income. ____ 4.
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This note was uploaded on 04/25/2011 for the course AIM 6352 taught by Professor Kennethl.bressler during the Spring '11 term at University of Texas at Dallas, Richardson.

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Chapter 2 quiz - Quiz Chapter 2 True/False Indicate whether...

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