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Luis is the sole shareholder of Stork, Inc., A C Corporation, and Eduardo owns a sole proprietorship.Both businesses were started in 2008 and make a profit of $80,000 this year. Each owner withdraws $50,000 from his business during the year. Whcih of the following statements relating to 2008 is INCORRECT?A. Eduardo must report $80,000 of net proit on hi individual return.B. Luis must report dividend income of $80,000C. Eduardo’s proprietorship is not subject to an entity (separate) level income tax.D. Stork Corporation must pay tax on $80,000E. None of the above.
Luis is the sole shareholder of Stork, Inc., A C Corporation, and Eduardo owns a soleproprietorship. Both businesses were started in 2008 and make a profit of $80,000 this year.Each owner…
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