Platte River Corporation is a calendar year S corporation. At the beginning of the year, Mr. Reeves owned 100% of Platte River's outstanding stock. On June 30 of the current year, he gave 25% of the stock to his son Mark and 10% of the stock to his daughter Megan. Platte River's ordinary income for the year was $220,000. What portion of this income must each shareholder report?
A. Mr. Reeves, $143,000; Mark, $55,000; Megan, $22,000
B. Mr. Reeves, $181,500; Mark, $27,500; Megan, $11,000
C. Mr. Reeves, $220,000; Mark, $0; Megan, $0
D. Mr. Reeves, $73,333; Mark, $73,333; Megan, $73,333
Answer: B
You might also like to view...
Summarize Laurence Kohlberg's three levels of personal moral development. Imagine that you manage a local gym, and explain how your management style or techniques would be different at each level.
What will be an ideal response?
In large-scale projects, and especially in cases in which the data entry is performed by a subcontractor, researchers utilize a data code book which identifies (1 ) the questions on the questionnaire, (2 ) the variable name or label that is
associated with each question or question part, and (3 ) the code numbers associated with each possible response to each question. Indicate whether the statement is true or false
Which of the following types of diversity is NOT a surface-level factor?
a. Age b. Sex c. Race d. Personality
The after-tax cost of debt is used to calculate the weighted average cost of capital since we are concerned with the after-tax cash flows of the firm.
Answer the following statement true (T) or false (F)