Fmv at january 1 adjusted basis at january 1 excess

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: stributed $100,000 and reported operating income of $200,000. What amount should Evan include in gross income? a. b. c. d. $38,000 $40,000 $80,000 $118,000 CPA-05543 Explanation Choice "c" is correct. Like partnerships, S corporations report both separately and non-separately stated items of income and/or loss. Allocations to shareholders are made on a per-share, per-day basis in accordance with ownership percentage. Shareholders in an S corporation must include on their personal 45 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 income tax return their distributive share of each separate "pass-through" item. Shareholders are taxed on these items, regardless of whether or not these items have been distributed to them during the year. EF's operating income Evan's ownership % Gross income for Evan $200,000 40% $ 80,000 Choice "a" is incorrect. This answer option incorrectly assumes th...
View Full Document

This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

Ask a homework question - tutors are online