Juanita owns 60% of the stock in a C corporation that had a profit of $200,000 in the current year. Carlos owns a 60% interest in a partnership that had a profit of $200,000 during the year. The corporation distributed $45,000 to Juanita, and the partnership distributed $45,000 to Carlos. With respect to this information, which of the following statements is incorrect?
(a) Juanita must report $120,000 of income from the corporation.
(b) The corporation must pay corporate tax on $200,000 of income.
(c) Carlos must report $120,000 of income from the partnership.
(d) The partnership is not subject to a Federal entity-level income tax.
(e) None of the above.
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Home » Business » Juanita owns 60% of the stock in a C corporation that had a profit of $200,000 in the current year. Carlos owns a 60% interest in a partnership that had a profit of $200,000 during the year.