Unformatted text preview: stributed $100,000 and reported operating income of
$200,000. What amount should Evan include in gross income?
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
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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
$ 80,000 Choice "a" is incorrect. This answer option incorrectly assumes th...
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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.
- Fall '10
- The Land