Shareholders are taxed on these items regardless of

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: 48,000 c. $5,000 d. $0 CPA-04842 Explanation Choice "c" is correct. An S corporation reports both separately stated and non-separately stated (net business) items of income. The dividend income is a separately stated item and is not included in the calculation of net business income. Choice "a" is incorrect. Dividend income is a separately stated item and is not included in net business income. Gross Receipts are included in net business income. Choice "b" is incorrect. Dividend income is a separately stated item and is not included in net business income. Supplies expenses and utilities expense would be deducted from net business income. Choice "d" is incorrect. Dividend income is a separately stated item and is not included in net business income. Supplies expenses and utilities expense would be deducted from net business income. CPA-05297 Type1 M/C A-D Corr Ans: A PM#17 R 3-02 92. CPA-05297 Released 2006 Page 47 Which of the following entities may adopt any tax year...
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