T owns a sole proprietorship, and L is the sole shareholder in a C corporation. In the current year, both businesses make a net profit of $60,000. Neither business distributes any funds to the owners in the year. For the current year, T must report $60,000 of income on his individual return, but L is not required to report any income from the corporation on her individual return. Question 1 options: True False
T owns a sole proprietorship, and L is the sole shareholder in a C corporation. In the current year, both businesses make a net profit of $60,000. Neither business distributes any funds to the owners in the year. For the current year, T must report $60,000 of income on his individual return, but L is not required to report any income from the corporation on her individual return. Question 1 options: True False
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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T owns a sole proprietorship, and L is the sole shareholder in a C corporation. In the current year, both businesses make a net profit of $60,000. Neither business distributes any funds to the owners in the year. For the current year, T must report $60,000 of income on his individual return, but L is not required to report any income from the corporation on her individual return.
Question 1 options:
| True | |
| False |
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