Multiple Choice
Luis is the sole shareholder of Stork,Inc.,a C corporation,and Eduardo owns a sole proprietorship. Both businesses were started in 2008 and make a profit of $80,000 this year.Each owner withdraws $50,000 from his business during the year. Which of the following statements relating to 2008 is incorrect?
A) Eduardo must report $80,000 of net profit on his individual return.
B) Luis must report dividend income of $80,000.
C) Eduardo's proprietorship is not subject to an entity (separate) level income tax.
D) Stork Corporation must pay tax on $80,000.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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