AC507 Unit 6 Quiz
- Which of the following statements does not apply to a qualifying S corporation?
- Duet Co. is a calendar year S Corporation owned equally by Patricia and Scott. Duet Co. had taxable income of $40,000 for the current year. Patricia and Scott each received distributions from Duet Co. of $5,000. What is Patricia’s taxable income from Duet Co. for the current year?
- If a shareholder does not have sufficient stock basis to deduct his or her share of an S corporation's losses and deductible items, what are the tax consequences?