Question
5. When an employee/shareholder receives an income allocation from an S corporation, what taxes apply to the income allocation? A. FICA tax only. B. Self-employment
5. When an employee/shareholder receives an income allocation from an S corporation, what taxes apply to the income allocation?
A. FICA tax only.
B. Self-employment tax only.
C. FICA and self-employment tax.
D. None of these. This income will never be taxed.
E. None of these. This income will be taxed, but another type of tax will apply.
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Internal Auditing Assurance & Advisory Services
Authors: Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Cris Riddle, Mark Salamasick, Paul J. Sobel
4th Edition
0894139878, 978-0894139871
