Question 35 of 75. Which of the following statements about business entity income is TRUE? Blair is a shareholder in a C corporation. She owns 55% of the shares and performs services for the company. Her wages will be reported on Form W-2, and her share of the company's ordinary income will be reported to her on Schedule K-1 (Form 1120). Estrada is a limited partner who materially participates in the partnership and receives guaranteed payments. The partnership will report her guaranteed payments on Schedule K-1 (Form 1065). Estrada's guaranteed payments will be subject to self-employment tax. Laura is a shareholder in an S corporation. She owns 15% of the shares and does not perform services for the company. The company will report her share of income on Schedule K-1 (Form 1120-S). Laura will pay self-employment tax on her share of the ordinary income O Tanita is a sole proprietor. She may report her business income on Schedule C (Form 1040) Form 1065.
Question 35 of 75. Which of the following statements about business entity income is TRUE? Blair is a shareholder in a C corporation. She owns 55% of the shares and performs services for the company. Her wages will be reported on Form W-2, and her share of the company's ordinary income will be reported to her on Schedule K-1 (Form 1120). Estrada is a limited partner who materially participates in the partnership and receives guaranteed payments. The partnership will report her guaranteed payments on Schedule K-1 (Form 1065). Estrada's guaranteed payments will be subject to self-employment tax. Laura is a shareholder in an S corporation. She owns 15% of the shares and does not perform services for the company. The company will report her share of income on Schedule K-1 (Form 1120-S). Laura will pay self-employment tax on her share of the ordinary income O Tanita is a sole proprietor. She may report her business income on Schedule C (Form 1040) Form 1065.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 35 of 75.
Which of the following statements about business entity income is TRUE?
Blair is a shareholder in a C corporation. She owns 55% of the shares and performs services for the company. Her wages will be reported on Form W-2, and her share of the company's ordinary income will be reported
to her on Schedule K-1 (Form 1120).
Estrada is a limited partner who materially participates in the partnership and receives guaranteed payments. The partnership will report her guaranteed payments on Schedule K-1 (Form 1065). Estrada's guaranteed
payments will be subject to self-employment tax.
Laura is a shareholder in an S corporation. She owns 15% of the shares and does not perform services for the company. The company will report her share of income on Schedule K-1 (Form 1120-S). Laura will pay
self-employment tax on her share of the ordinary income
O Tanita is a sole proprietor. She may report her business income on Schedule C (Form 1040) Form 1065.
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