Multiple Choice
Juanita owns 45% of the stock in a C corporation that had a profit of $120,000 in 2010.Carlos owns a 45% interest in a partnership that had a profit of $120,000 during the year.The corporation distributed $20,000 to Juanita,and the partnership distributed $20,000 to Carlos.Which of the following statements relating to 2010 is incorrect?
A) Juanita must report $20,000 of income from the corporation.
B) The corporation must pay corporate tax on $120,000 of income.
C) Carlos must report $20,000 of income from the partnership.
D) The partnership is not subject to a Federal entity-level income tax.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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