Grams, Inc., a calendar year S corporation, reports $20,000 DPGR and $15,000 of wages, and the S corporation's QPAI is $5,000.Janet has a 40% interest in the S corporation.All expenses that reduce DPGR are from wages, and all wages paid relate to DPGR.How much QPAI and wages are allocated to Janet?
A) None.
B) $2,000 and $6,000.
C) $5,000 and $15,000.
D) $5,000 and $20,000.
Correct Answer:
Verified
Q91: Claude Bergeron sold 1,000 shares of Ditta,
Q104: Which tax provision does not apply to
Q105: S corporation status allows shareholders to realize
Q106: The corporate _ _ tax is avoided
Q107: _ debt in an S corporation year
Q109: To make a valid S election, the
Q110: When an S corporation liquidates, which of
Q111: Pepper, Inc., an S corporation, reports sales
Q112: _ common stock and _ preferred stock
Q113: Yates Corporation elects S status, effective for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents