Multiple Choice
Kevin and Jennifer are 60% and 40% shareholders, respectively, in an S corporation.If the corporation reports $10,000 of nonseparately stated income and $2,000 of capital gain, how much is allocated to Jennifer?
A) $4,000 income only
B) $4,000 income and $2,000 of capital gain
C) $4,000 income and $800 of capital gain
D) $6,000 income and $2,000 of capital gain
Correct Answer:

Verified
Correct Answer:
Verified
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