Cedar Corporation has an S corporation election in effect. During the 2018 calendar tax year, the corporation

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Cedar Corporation has an S corporation election in effect. During the 2018 calendar tax year, the corporation had ordinary taxable income of $200,000, and on January 15, 2018, the corporation paid dividends to shareholders in the amount of $120,000. How much taxable income, in total, must the shareholders of the corporation report on their 2018 tax returns? Explain your answer

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Income Tax Fundamentals 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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