7. Which of the following is a true statement regarding primary authority of tax law?

A) Articles in The Journal of Taxation are viewed as primary authority.

B) The Bloomberg BNA Daily Tax Reporter is a source of primary tax authority.

C) Primary authority includes the Code, as well as administrative and judicial interpretations

D) Tax services are sources of primary tax authority.

8. Which of the following is an advantage of a sole proprietorship over other business forms?

A) tax-exempt treatment of fringe benefits

B) the deduction for compensation paid to the owner

C) low tax rates on dividends

D) ease of formation

9. Blue Corporation is a C corporation with earnings of $700,000. It paid $200,000 in dividends to its sole shareholder, Vilolet. Violet also owns 100% of Green Corporation, an S corporation. Green had net taxable income of $100,000 and made a $40,000 distribution to Violet. What income will Violet report from Blue and Green's activities?

A) $240,000

B) $300,000

C) $740,000

D) $800,000