1. Discuss fully the components of capital assets.
A. All property is characterized as a capital asset, unless expressly excluded.
B. The following types of property are not capital assets:
1. Inventory (or stock in trade) property held prim
BROOKLYN COLLEGE OF THE CITY UNIVERSITY OF NEW YORK
BUSN 7206X - Microeconomics for Business Decisions
FIELD OF STUDY
Prof. Herv Queneau
Brooklyn College of the City University of New
1. Discuss fully extraordinary dividend.
A. Additional gain may be recognized by a shareholder who sells stock on which an
extraordinary dividend was received.
B. An extraordinary dividend is a dividend on stock held 2 years or less th
1) Discuss the eligibility for S corporation status.
A corporation is treated as an S corporation only those days which each specific eligibility requirement is
met and the required election is effective.
a. Eligibility de
1. Discuss fully "partner's distributive share". 7 a - f
a. Each partner is taxed on his/her share of partnership income whether or not it is distributed.
b. A partners distributive share of any partnership item is allocated by the par
Study Unit 8.
1. Discuss fully Parent-Subsidiary Controlled Group and Brother-Sister Controlled
Parent-Subsidiary Controlled Group
a. This type of controlled group consists of
1. Two corporations if one of the corporations owns stock that repr
1. Discuss fully the gross income of a corporation and excluded items.
a. Gross income of a corporation, similar to individual taxation, is all income from
whatever source derived unless specifically excluded.
2. Excluded Items