Multiple Choice
Francisco is the sole owner of Rose Company. For 2012, the only income of Rose was a long-term capital gain of $25,000. The business made no distributions during the year to Francisco. Irrespective of Rose Company, Francisco's marginal tax rate is 35% and he has no capital asset transactions. Which of the following statements is incorrect?
A) If Rose Company is a sole proprietorship or S corporation, Francisco must report the $25,000 long-term capital gain on his personal income tax return.
B) If Rose Company is a C corporation, Francisco will report none of the $25,000 long-term capital gain on his personal income tax return.
C) If Rose Company is a sole proprietorship or S corporation, a preferential tax rate applies to the $25,000 long-term capital gain.
D) If Rose Company is a C corporation, a preferential tax rate does not apply to the $25,000 long-term capital gain.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: The passive loss rules apply to closely
Q48: A personal service corporation with taxable income
Q49: On December 20, 2012, the directors of
Q50: George Judson is the sole shareholder and
Q51: Azul Corporation, a calendar year C corporation,
Q53: Heron Corporation, a calendar year, accrual basis
Q55: Eagle Company, a partnership, had a short-term
Q57: During the current year, Lavender Corporation, a
Q109: Red Corporation,which owns stock in Blue Corporation,had
Q115: Albatross, a C corporation, had $140,000 net